The CPP Payroll Tax Hike

Résumé du livre

An important feature of the 1997 changes to the Canada Pension Plan (CPP) is a significant increase over the next decade of the premiums to be paid by employers and employees. This study uses the FOCUS model of the Canadian economy to examine the macro-economic impacts of these increases and to investigate some alternatives. These alternatives include some form of privatization of the CPP and the substitution of income taxes for premium increases. A final simulation examines the extent to which existing and forecasted reductions in employment insurance premiums could offset the negative impacts of CPP premium increases.