June 22, 2016

Liberals’ CPP reforms ignore demographics, world opinion and peer-reviewed research

Ezra LevantRebel Commander

Professor Ian Lee of the Sprott School of Business came on my show to explain what's wrong with the Liberals' Canada Pension Plan reforms. Trudeau's changes fly in the face of international trends, demographic realities and peer reviewed research.

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commented 2016-06-22 17:12:54 -0400
The CPP is a f’ing disaster and for those who will need it or rely on it it won’t be there because successive governments (PC and LIB) have used it as a slush fund and allowed it to be used for other programs (like disability) which it was never intended for. The CPP payment funds never went into a proper dedicated interest collecting account.

Pissing matches between PC and Liberals about the claim age and such is a pathetic distraction from the fact this was a viable, sufficiently funded program with a large wad of revenues that was mismanaged, if not robbed, by ALL governments – proving the only problem with federal pension funds is trusting politicians to run it.

Meanwhile public sector parasites retire at 55 with an indexed pension 2/3 of their working wage – in a more civil time, the people would be tying nooses, lighting torches =, plucking chickens and boiling tar before confronting their shyster administrators with malfeasance allegations.
commented 2016-06-22 16:30:10 -0400
Attacking and punishing small business owners with additional payroll taxes should not come as a surprise to anyone. The fascist thug, who is our so-called prime minister, made his opinion clear (for once) that small business owners are just wealthy people trying to avoid paying taxes.
commented 2016-06-22 16:21:19 -0400
This won’t affect me now, but I hope that my fellow Canadians who are heading towards retirement realize that to make their contributions to this ponzi scheme they will first be required to earn a dollar, which will immediately get taxed, say, 25 cents. So now they expect that remaining 75 cents to be “returned” to them upon retirement.
But wait a minute if, like me, you are a low income senior then you will also be receiving the Guaranteed Income Supplement, but (broadly speaking) the Supplement gets clawed back by 50 cents for every dollar of additional income above OAS pensions so now the worth your original dollar will be down to anything between 25 and 50 cents.
What’s more, if this “enhancement” also happens to bring your total pension into the range of being taxable . . . where are we now? I’ve lost track, but I think I’m reasonably showing that contributors will be pretty close to being in the hole, and that’s without even getting into the effect of an employer’s contribution.
Of course everyone’s situation is different, so in generalizing I’ve had to play a bit fast and loose with the arithmetic but I’m sure, dear readers, you all get my drift.
I mentioned earlier that this won’t affect me now, but I currently experience something similar. As an immigrant to Canada I don’t receive a full OAS pension (that’s not a complaint, just a matter of fact) but I do receive a modest UK pension as a result of working there earlier in my life. This little additional pension affects my Canadian GIS in exactly the way that I’m suggesting that this enhancement would.
RRSP’s have a similar effect on pension incomes, which is why the great alternative to this rip-off was the Conservative’s Tax Free Savings Account. Those Liberals who said that TFSA’s benefit only the wealthy and that us poor folks would be better off with RRSP’s have it back-asswards. They are either liars, or they are ignorant, or they are stupid.
commented 2016-06-22 16:05:29 -0400
The bottom line is that the Canada Pension Plan has always been a pyramid scheme. It was brought in out of expediency for political reasons to be elected. I believe the date was @1966. The plan was based on the assumption that more and more people would work and contribute over time so that those that retired could collect a pension. Offsetting investment returns were to make up the difference, but at it’s core the plan was based on an ever increasing population of workers contributing.

The baby boom wasn’t considered. The population would age and the need for more contributions would become critical to maintaining the pension payouts to retirees. Politicians never considered that the population birth rate might decrease and , therefore, fewer contributions would be collected. They never considered inflationary rates, deep low returns on investments, immigration, etc.

And there’s a huge rub. Immigration of “families” under re-unification rules saw a huge influx of “older” people entering the system. These people would sometimes only work the minimum number of years and barely meet the requirements to collect CPP. That set a heavier than anticipated burden on the CPP system.

Baby boomers lived longer than anticipated with improved medical treatments. How many elderly would have succumbed earlier if not for pace makers, high blood pressure meds, improved cancer detection and treatment? These people were never considered in the original calculations when CPP was instituted.

Now, seniors like myself, who are just at the age of retirement yet still working, are expecting to get our pensions. Having paid into the system for close to fifty years we should be able to rely on that system to pay us back for all of our contributions. Instead, we are now being told that we will have to contribute at a higher rate in the last few years of our working life. Those slightly younger are being told they can’t collect until 67 years old.

But what of the future? Now you can understand why the Liberals have taken to increasing immigration to all time high levels. They need the workers to make increased contributions to maintain the CPP system a little longer. The Liberals get a whole new voter base from the immigrants and they get to say they are addressing the CPP issue. For Trudeau and the Liberals it’s a win / win scenario.

But for the citizens of Canada it’s just another scam. The CPP issue has been pushed down the road for the next government to deal with. Twenty five , or so years from now, what will happen to all those 40 year olds that are getting ready to retire? Where will the money come from in today’s decreasing economy and increasing inflationary rate?

CPP has always been a PYRAMID SCHEME ! But Canadians never seem to catch on to these crooked political schemes and ,if they do, Canadians never do anything about it. Canadians just aren’t happy unless someone is ripping them off and kicking them in the teeth !
commented 2016-06-22 14:13:42 -0400
Of course we shouldn’t expect the economic common sense of the Harper administration to rub off on the JT administration. Proof once again. HE’S just not ready.
commented 2016-06-22 14:09:06 -0400
Just like everything else that’s wrong in today’s world – bring society down to it’s lowest common denominator and defer the inevitable.