Toronto, Oct. 31, 2024 (GLOBE NEWSWIRE) -- Less than half of Canadians (43%) believe the federal government is putting enough of a priority on making life more affordable, according to a new public opinion poll conducted by spark*insights on behalf of Restaurants Canada. Restaurants Canada is urging the federal government to make a firm commitment to improve affordability by reducing payroll taxes for employees and employers in its upcoming Fall Economic Statement.
“Canadians are struggling with the cost of living and that’s having a knock-on effect on sectors like foodservices, where we’re seeing fewer guests and smaller orders, even in the usually busy summer season,” said Kelly Higginson, President and CEO of Restaurants Canada. “Something has to give and that’s why we’re asking the federal government to relieve some of the pressure on employers and let workers keep more of their paycheques by reducing payroll tax.”
Nearly eight in 10 Canadians (77%) say they would benefit from government reducing payroll taxes, with 42% saying it would have a major positive impact on them and their family.
Canadians earning $50,000 a year pay $830 of that in Employment Insurance (EI) while their employer pays an additional $1,162. Provinces also levy their own payroll taxes, reducing take-home pay even further. Restaurants Canada is asking the federal government to provide some immediate relief by introducing a 2% reduction in EI payroll tax.
“Workers and employers need a break. Payroll taxes are taking a bigger bite out of Canadians’ take-home pay and are making it more expensive for employers to hire or raise wages. The easiest way to deliver some immediate relief would be to lower EI payroll tax for both employers and employees. This is a straightforward solution that government has employed before and we need to see it again,” concluded Richard Alexander, Executive Vice President, Government Relations and Public Affairs, Restaurants Canada.
About the survey
Data is drawn from a spark*insights online survey of 2,100 Canadians conducted on behalf of Restaurants Canada from October 9-14, 2024. Results are weighted to be representative of the general population.
