CPP Canada Pension Plan CPP

Canada Pension Plan CPP: Economist Milton Friedman argued that one of the great mistakes is to judge policies by their intentions rather than their results. Take, for instance, the Canada Pension Plan CPP and recent discussions to reform and expand its scope, according to The Chronicle Herald. Mr. Sheridan and Ms. Wynne argue that it is necessary to expand the CPP to ensure that Canadians are financially secure during retirement. Their compassion and consideration, however, does not address several implications and unintended consequences of CPP expansion and P.E.I. Finance Minister Wes Sheridan, with support from Ontario Premier Kathleen Wynne, recently called on the federal government to raise the CPP contribution rate to 13 per cent from 9.9 per cent on income between $25,000 and $51,000 in which case the employee and employer would each contribute 6.5 per cent. The reforms would also include expanding the earnings cap from $51,000 to $102,000, for which the contribution rate would increase from zero per cent to a combined rate of 3.1 per cent and the annual contribution limit would nearly double from $2,356.20 to $4,681.20. (www.immigrantscanada.com). As reported in the news.