However, any politically party that does so will lose the votes and funding of rich seniors so it’s never going to happen.
We need to get rid of deferred property taxes and introduce a federal land tax for people who aren’t working.
Dirkef88 on
One of the biggest subsidies to older Canadians is their CPP benefit.
Prior to a major restructuring of contributions/benefits and the creation of CPPIB in 1997, the CPP was built on a model with no investment income, where payments were 100% funded from current contributions. It was realized that this model was not sustainable, and that past contributions were nowhere near enough to support future benefits.
All that meaning: if you worked at all before 1997, your contributions to CPP were insufficient to pay for your own benefits, and you were (and still are) being subsidized by everyone who has worked and paid into CPP after 1997.
CPP is now a very healthy benefit plan, but the returns to younger Canadians could be much higher than they are going to be, if we didn’t have to spend the last 30 years playing catch-up to subsidize the CPP benefits of everyone who was working prior to 1997.
2 Comments
Agreed.
However, any politically party that does so will lose the votes and funding of rich seniors so it’s never going to happen.
We need to get rid of deferred property taxes and introduce a federal land tax for people who aren’t working.
One of the biggest subsidies to older Canadians is their CPP benefit.
Prior to a major restructuring of contributions/benefits and the creation of CPPIB in 1997, the CPP was built on a model with no investment income, where payments were 100% funded from current contributions. It was realized that this model was not sustainable, and that past contributions were nowhere near enough to support future benefits.
All that meaning: if you worked at all before 1997, your contributions to CPP were insufficient to pay for your own benefits, and you were (and still are) being subsidized by everyone who has worked and paid into CPP after 1997.
CPP is now a very healthy benefit plan, but the returns to younger Canadians could be much higher than they are going to be, if we didn’t have to spend the last 30 years playing catch-up to subsidize the CPP benefits of everyone who was working prior to 1997.