Madam Speaker, it intrigues me that we can have such different views of Canada and such different views of what Canadians are saying to us. I will take some time to speak against Bill C-2 and somewhat to the group of amendments before us.
Before I begin that it is necessary for me to begin my remarks by touching on something that was recently written by Michael Jenkinson of the Edmonton Sun . Like many other Canadians, he is realizing that the proposed changes to the CPP are tantamount to the biggest tax rip-off in Canadian history. Mr. Jenkinson writes:
I apologize if I misled people into thinking that the CPP premium increase would be a massive tax hike instead of a freaking monstrous tax grab.
I am now satisfied that the Liberals are not ignorant, money grubbing, peons who believe the answer to every problem is to hike taxes. Instead people should correctly understand that the Liberals are actually treacherous demon spawn who would rather sell out today's younger generation for the sake of a quick political fix.
Now those are not my words. I would be a little more delicate in what I would say about people. However, it is an expression of some of the outrage we in the Reform Party are hearing about the proposed changes to the CPP.
The notion that this Liberal government is selling out future generations of Canadians is at the heart of this matter. We take the opposite viewpoint from our hon. colleagues across the way who see it as the great salvation for our young people.
Aside from the cruel intergenerational transfer of wealth that this bill proposes, this legislation will give Canadians in the upcoming generation a pathetic return once they retire.
My colleagues, for just a second I plead with you to think of what this legislation will do in conjunction with a $600 billion or more national debt. Not only has this Liberal government effectively relegated repayment of the national debt to future generations of Canadians, it has now saddled them with the $590 billion unfunded liability present within the Canada pension plan.
I wonder if Liberal members across the way have children. Do they not have grandchildren? What can they possibly say that would justify placing this heavy debt around the necks of our young? What will these future generations of working Canadians have to look forward to after decades of debt repayment? What will be their reward for the thousands they will pay into CPP contributions? A pathetic pension which will give them a negative return on their investment once they retire. I think that is downright criminal and sad.
Beyond that, when I listen to the flippancy coming from the government benches during question period and when I listen to the finance minister twist his responses on the matter of the CPP it is disgusting.
I have eight children. Some of them are old enough to vote and some are not. In either case, the proposed changes to the Canada pension plan are and will be nothing short of a national tragedy. What say do my children have right now in this matter? Actually their say will mirror that of their future pensions, nothing at all.
Right now contributions are 5.8% of every working Canadian's gross salary whether employed or self-employed. Participation is mandatory. Contributions will increase over a six year period until the year 2003 when they will reach a steady state of 9.9%.
According to the Library of Parliament, those who retire in the year 2026 will only get back 64% of what they put into the Canada pension plan. That same study also shows that people who retired in 1976 will receive nearly 12 times what they put into the scheme. Is that fair to our young people?
That is exactly what this is. It is a scheme. More precisely, it is a pyramid scheme, one which greatly benefits those who are in first and gives the shaft to those who will follow.
There is, however, a major difference between Bill C-2 and the illegal investment scams conducted in places like Albania. Yes, just like the pyramid schemes that plagued but were accepted by the Albanian government, the CPP is also sanctioned and condoned by our government in Canada, except the people of Albania at least had a choice in whether or not they wanted to participate.
Through Bill C-2 this Liberal government is not giving Canadians any choice whatsoever in the matter. In short, this state sanctioned mugging is mandatory.
By the year 2003 every worker making at least $35,800 will pay $1,635 per year and his or her employer will have to match it. Of course, self-employed people will have to pay both contributions, as much as $3,270 per year.
The maximum benefit payable under CPP is 25% of an average salary of $35,800. This works out to a top yearly payment of $8,725. If that is not obscene, what is?
The tax grab hits everyone. The only real difference is the proportional way in which it does so. In terms of low income workers and part time workers, they will feel the pinch disproportionately. The first $3,500 of income is exempt from CPP deductions. It is called the yearly basic exemption. However, Bill C-2 will freeze this deduction. So as the price index rises with inflation over the years the real level of the YBE, the yearly basic exemption, will decline. This will effectively shift the burden of contributions more heavily on to low income earners. This is a regressive feature that widens the contributory base by stealth.
Aside from the negative consequences that Bill C-2 will have on future generations of workers, this legislation also represents a huge obstacle to anyone who will be looking for a job. Why? Because the proposed premium increases are the biggest payroll taxes ever put to Canadians since the inception of the Canada pension plan, 73% over the next six years.
Madam Speaker, colleagues, Canadians, payroll taxes kill jobs. Do not take my word for it. In the House of Commons on May 3, 1994 Paul Martin said in an answer to a question by the leader of the Reform Party “payroll taxes are a cancer on job creation”. In his own presentation to the Standing Committee on Finance on October 17, 1994 finance minister Paul Martin said it even more clearly—