The Canadian Taxpayers Federation (CTF) says a report from the Council of the Atlantic Premiers is a missed opportunity and it’s high time our Premiers to support sensible EI reforms that will benefit majority of Atlantic Canadians.

“The math on EI is really simple, we can’t grow the region by promoting 14 weeks of work in a 52 week economy,” said Kevin Lacey Atlantic Director with the Canadian Taxpayers Federation.

The CTF further pointed to two issues that were ignored in the report:

• There was no mention of how to address the issue of high rates of EI in some areas of the region, while still some companies cannot find workers to fill vacant jobs.  
• The growing payroll burden of EI on average Atlantic workers who get up every morning, go to work, pay their EI taxes and rarely, if ever, draw on the program.

Over the past five years, EI taxes on Canadian workers have gone up 25 per cent to $914 per year. Employers are now paying $1,279 per employee.

“EI is a mess and responsibility for that rests with politicians in Ottawa who for years treated the system like a political slush fund, creating a system that is unsustainable. There are no winners under the status quo,” added Lacey. “But our premiers should be fighting for the working taxpayers who are digging into their pocket to pay ever increasing taxes for a program they never use.”

The CTF participated in the Council’s public consultations and also submitted a written brief. CTF recommended EI be replaced with Individual Employment Insurance Savings Accounts (EISA). Premiums would be paid into an account that belongs to individual workers. Money is drawn from the account upon job loss. Money left over would be transferred to an individual upon reaching the retirement age.

“Taxpayers of our region would be better served by provincial politicians fighting for sensible reforms to the EI system that currently serves no one well, rather than simply complaining to Ottawa to try to keep an unsustainable system intact,” said Lacey.

To get the detailed 30-page CTF report on Canada’s EI, click HERE.