Question: Using economic concepts to answer this problem The Canada Pension Plan (CPP) is a federal government program that provides people with retirement income. Either buyers

Using economic concepts to answer this problem

The Canada Pension Plan (CPP) is a federal government program that provides people with retirement income. Either buyers of labour (employers) or sellers of labour (workers) could be taxed to pay for CPP, but instead, the tax to pay for CPP is evenly split between employers and workers. In 2022, a worker pays a tax (5.7% of their earnings) to CPP, and the employer pays a tax (5.7% of their worker's earnings) to CPP. Most people believe it sounds fair for workers and employers to split the tax bill for CPP. How would things change if the law changed, so employers no longer paid their half, and instead, workers had to pay all of the taxes for CPP? What things influence how much of the burden of the CPP tax is incurred by workers or employers? If CPP and the CPP tax were eliminated would the number of workers with jobs change?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!