Categorized | Canadian Politics

CPP tax-hike a betrayal of Canadian youth: Harder

Posted on 29 June 2016 by admin

Official Opposition Youth Critic Rachael Harder is concerned that the Liberal CPP tax-hike will have a disproportionate effect on Canadian youth.

“From coast-to-coast-to-coast, Canadian youth have told Conservatives that it is challenging to balance the cost of living with student debt,” said Harder. “In reality, this tax-grab will do nothing but make it more difficult for youth to pay off their student loans and save for a down payment on their first home.”

Under the current CPP system, Canadians pay a 9.9% tax on earnings between $3,500 and $54,700. In the past, Prime Minister Trudeau said he favoured an approach that would increase CPP taxes by as much as $3,300 per year.

“Unfortunately Justin Trudeau has refused to tell youth the exact cost of his CPP tax-hike. Whether by raising taxes on young people, decreasing their ability to save tax-free, or shrinking their paychecks through a CPP tax-hike, this Liberal government is making life unaffordable for youth,” said Harder.

In 2015, the Canadian Federation of Independent Business studied a CPP tax-hike and found that it would eliminate 110,000 jobs and permanently lower wages by nearly 1%.

Harder continued, “Increasing CPP taxes will limit youth employment opportunities by increasing the cost of creating a new job. The Liberals are already making it harder to hire youth by eliminating the hiring credit for small businesses and cancelling a scheduled reduction to the small business tax rate.”

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