After consulting all his counterparts from provinces and other branches of the government, Finance Minister Jim Flaherty reached to the conclusion that it is not the time to boost the Canada Pension Plan. Federal minister of state for finance, Kevin Sorenson, also mentioned on Monday that now is not the time to raise payroll taxes to pay for higher pensions.
Mr. Flaherty determined that Canadian economy still needs to fully recover from the recession, which could take years. Among other things discussed at the meetings of Finance Ministers, a demand to increase contribution rates to the Canada Pension Plan was also discussed. Mr. Flaherty concluded that “CPP is a tax on people who work, a tax on employers. It takes money directly out of the economy, so it’s not something to be done lightly. It’s something that must be done with consideration and thought.” Upon inquiry if he intended to propose his own plan on how to enhance CPP during Monday’s meeting, the minister refrained to answer.