dino_bobba_renno dino_bobba_renno:
DerbyX DerbyX:
Except you are both wrong and both ignoring Harpers doing the same thing.
EI premiums are tax deductible. In other words everybody who pays EI can reduce the amount of federal tax they owe by that amount.
So what does that have to do with anything? I give the government a dollar and they give me a tax credit worth between 20 and 30 cents. That still leaves me out out of pocket for 70 cents which will go into a employment insurance slush fund from which I will never be entitled to collect a dime from.
What it means is that because its tax deductible it comes off any income tax owed.
Lets say you owe X dollars in tax but deduct 700 from it for EI contributions. Another person owes the same amount but doesn't pay into the EI fund doesn't get that deduction.
You and he both owe the same amount in tax yet you pay 700 dollars less
and you get access to Employment Insurance.
Why should you owe less tax because you pay EI. Paying EI doesn't mean you get less services from the govt so why should you pay less? My uncle has been a "piece-work" drywaller his entire life. He never paid EI and was never eligible to collect it either. Why should he have to pay more tax then a drywaller making the same amount but working for a company proper and paying EI?
Thats like being allowed to deduct auto insurance premiums. People with cars pay less income tax then people who don't own one?
In addition, why is it that when the EI fund was underfunded did the govt have to make up the shortfall?
The entire amound paid into the EI fund is tax deductible both for employees
and employers, who BTW paid far more into it so the actual amount used that constitued "employee" contributions is significantly less then the 54 billion claimed by labour unions. The govt is forever giving tax breaks to employers, bailing them out like the auto industry or simply allowing them to defer taxes owed until the next millenium so I have little sympathy with unions crying foul over the EI fund while they scream at the govt for billions to bail them out.
So because EI contributions come directly out of the taxes owed that go into general revenue they decrease the amount of money the govt has, money that has already been spent on healthcare, education, infrastructure, etc.
The only thing about this I don't like is that the Libs changed the rules making it harder for people who had been paying into EI to collect it when needed. However like everything in life there are multiple sides. Prior to that change Canada was being called a welfare state and people were abusing EI. They'd work the minimum hours to qualify then quit their job and go back on unemployment. I recall one summer by buddy and I were applying for a packing job, the same job his mother and her friend were applying for. They were discussing the job one day and the friend was commenting on how her EI was up and she needed to be employed for whatever days/hours to qualify again.
Of course back then we were teens and I didn't know jack about any of that stuff.