Payroll taxes tend to have the biggest impact on the restaurant business because it's so labour intensive. As I mentioned before, we're a number one first-time job provider. We have about 25% of our workforce under the age of 25, and payroll taxes are regressive in a sense, because you pay disproportionately more when you have entry-level workers at a starting wage. It does have a very detrimental effect on businesses.
That's why we are very supportive of the year's basic exemption in the Canada pension plan, which helps to make CPP a little bit more progressive. What we are looking for with the CPP is the restoration of inflation protection to $3,500 and the inclusion of something similar to the year's basic exemption as a part of EI. We don't want youth losing out on those foundational skills they get in their first job, reaching the age of 28 without ever having held a single job and losing the opportunity to progress within the labour force, but instead can have that all important experience on their resumé so they can increase their earning power at a later date.
Yes, for all those reasons, payroll taxes have a very big impact.