QUEEN’S PARK – Today, PC Critic for the Ontario Retirement Pension Plan Julia Munro asked the Premier to abandon her job-killing payroll tax because of its negative impact on jobs and the economy.
“Recent studies show that 90% of small business owners are opposed to the ORPP,” said MPP Julia Munro (York-Simcoe). “An employee making $45,000 per year would be required to pay almost $800 per year toward the ORPP, while employers would pay a mandatory matching amount for each employee. While larger businesses may be able to absorb these added costs, smaller businesses will be forced to either reduce the size of their workforce, or cut hours.”
Recent comments from the Canadian Federation of Independent Businesses show that the ORPP will represent a 40% addition to what employers and employees already pay towards the CPP.
“It is impossible to save for retirement if you don’t have a job,” Munro added. “How many job losses will it take for this Premier to axe her job killing payroll tax?”
Studies also show that the ORPP administrative costs are expected to range between $130 and $200 per worker, per year.
“A worker who contributed $800 per year will lose up to 25% of their contributions in administrative fees. That doesn’t sound like a very good return on investment to me,” stated Munro. “Ontarians won’t be saving more, they will just be losing more off their payroll stub.”
Munro concluded by calling on the Premier to commit to saving jobs by abandoning the “poorly planned job-killing payroll tax.”