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A Suggested Payroll Tax is Raising Concerns

The Manitoba government’s plan to introduce a new pension payroll tax is bad news for business. Rather than a mandatory payroll tax, the Canadian Federation of Independent Business suggests the introduction of Pooled Registered Pension Plan legislation instead.   Elliot Sims from the Federation explains right now the Federal Government, Saskatchewan, Quebec and a few other provinces have actually introduced this PRPT legislation that allows small businesses to band together and create a bigger pool of money to invest in a pension plan for their employees.  He says by banding together small businesses can get those lower administration fees and less red tape and be able to offer comparable pensions to what other businesses and organizations offer their employees.

 

Sims says payroll taxes are economic killers that impede employment growth and slow economic activity.

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