You wanted this, Ontario Liberal voters:
Introduced in the Liberal government’s 2014 budget, Finance Minister Charles Sousa and his associate, Mitzie Hunter — who has responsibility for ORPP — released a “Cost Benefit Analysis,” from the Conference Board of Canada shortly before Christmas.
In a news release accompanying the report, Hunter glowingly enthuses over its allegedly rosy projections. Did I mention the report was commissioned and paid for by the Ministry of Finance?
“While the report acknowledges there will be a small short-term impact to the economy, it also shows that real disposable income will be $19.4 billion higher and real GDP will increase by $9.6 billion over the long term under the ORPP,” Hunter said in the statement released Dec. 22.
So what did the report actually say?
Take a look:
“The increase in mandatory savings through the ORPP initially results in a period of reduced household spending as contributions to the ORPP lower household income.”
When does all the good news kick in? Well, don’t hold your breath. It’s 75 years from now.
From the report: “By 2045, real disposable income in Ontario is higher than it would have been without the ORPP. Retirees spend the additional income from the ORPP benefits, which leads to rising economic activity. In 2093, real disposable income is $19.4 billion — or 1.2% — higher than it would be without the ORPP.”
So there’s good news and bad news on the ORPP. The good news is that it will be a boost to the economy. The bad news is that most of us will be dead by the time it happens.
In the meantime, employees will have their take-home pay reduced and employers will have to find matching funds — as much as $1,074 per employee per year.