That is exactly right. One of our major concerns is the competitiveness of businesses that operate in Canada, and of course in Quebec, where we do business. Payroll taxes, in whatever form, or when related to various programs, undermine business competitiveness. I believe that, in Quebec, the majority of employers agree that there should be programs that provide for a safety net, and they are not opposed to making reasonable contributions. However, the bill cannot keep going up.
Our greatest concern, which I raised in our statement, is the possibility that the increase may reach 70% by 2015, in light of restrictions on the contributions from wages. As for employment insurance, we have noted that, in recent years, during times of economic growth, there is a decrease in the amount of benefits paid out. The main problem is that, given the current situation, the government is proposing a draconian increase to the benefits and a radical cut to the income—obviously, fewer salaries mean less revenue. It is also proposing an increase to certain components of the employment insurance program that are not benefits, which could easily lead to exorbitant increases.
This is why we are intervening, not just for the sake of saying “not in my back yard but in someone else's”. When we consider the entire structure of employment insurance, we must make sure that ultimately, the effects are neutral. The government cannot overtax payroll any more. In fact, payroll taxes not only represent a cost to employers, they also represent salaries not paid to employees. All other things being equal, the entire payroll is also the employers' salary costs. The higher the payroll taxes, the lower the amount paid to employees in wages.