Self-Employed have CPP Woes Bigger Problem is Income Taxes

Filed in archive Taxes on July 14, 2006

An editorial in the Edmonton Sun commented on the fact that the "Stephen Harper government is considering lowering the premiums we pay for the Canada Pension Plan as part of a "fiscal imbalance" fix to be unrolled this fall and included in next year's budget."

The editorial goes on to state that currently, "working Canadians pay 4.95% of their annual pensionable earnings to the CPP, which amounts to $1,910 per year maximum, while employers pay an equal amount. Self-employed individuals pay the full 9.9% rate, to a maximum of $3,820 per year."

What we need in Canada is for successive Canadian governments to realize that it is 'how they spend' our tax dollars that will make them popular and re-elected. Spending like drunken sailors and wasting millions of tax dollars is questionable re-election tactics.

As one of those self-employed Canadians required to pay the full 9.9% rate for the privilege of having the Canadian Government invest those funds into the Canada Pension Plan I would far prefer they put their tax cutting tools to work on our personal income tax rates.

Leave me more money in my pocket and I will invest in my business, build my savings faster, and who knows create new jobs by starting another business.