My colleague, Jean Crowder – Nanaimo - Cowichan recently issued the following Op-ed which I would like to share with you.
With the clouds of recession still casting a deep shadow over many Canadians, I hoped the federal government would do everything it could to help workers and small business.
Instead, they’ve done the opposite.
The Conservatives have introduced a whopping Employment Insurance premium hike. Starting next year, employees and employers will have to pay more tax out of every paycheque—$19 billion more.
According to the Canadian Federation of Independent Business, this plan will make small businesses more reluctant to hire, costing 200,000 jobs across Canada. But the news gets worse.
Parliamentary Budget Officer Kevin Page reported on April 15th that premiums will have to rise by 35 percent to balance the EI fund in four years. By 2014 that could mean employers in BC Southern Interior will be paying $312 more a year, while workers will pay $223.
Why is the EI fund in such dire straits? When the Conservatives created the new fund, they did not give it the estimated $54 billion surplus generated during the good years in Canada. Most of that money had gone into general revenue under the Liberals.
That surplus would have covered much of the expected shortfall in coming years.
Men and women across the country have still been unable to find work after last year’s severe recession.
Without urgent action, half a million of them will soon run out of Employment Insurance benefits. That means they will simply fall onto provincial welfare rolls—and deeper into debt.
For these 500,000 Canadians, things are about to go from bad to worse.
That is, of course, unless the federal government steps in to help. Unemployed Canadians still have to pay their bills and feed their families, so it’s unacceptable to abandon them.
That’s why New Democrats are committed to a comprehensive job-creation strategy, one that gets Canadians back to work and helps small business grow.
Unfortunately the 2010 budget ignores the plight of Canada’s unemployed and does nothing to create new jobs. Instead it dishes out another $6 billion in corporate tax cuts.
We can use that $6 billion to encourage small and medium-sized businesses to hire more workers through job-creation programs including incentives for new hires, subsidies for health and safety training, and investing in programs like child care that would increase the jobs available.
No economic recovery is complete until the jobs return. That is where we should be spending tax dollars, not on cuts to large corporations.