Econ 101: Enough with the EI Surplus Already
May 13th, 2008 by nancyzimmerman
Mom’s in town so gotta be brief, but here’s a jaw-dropper for you that I found thanks to Growth in Value’s blog:
The Employment Insurance Fund has a $54 BILLION surplus.
Uh, shouldn’t one of two things be happening:
1. Our premiums plummet
or
2. Programs designed to help people find work or figure out a good career for themselves get reinstated?
READERS: why do you think we put up with this? Why aren’t we kickin’ up a fuss?
The EI surplus is only high because the participation rate is moving up and the unemployment rate is low. Just wait until the inflation numbers next year come in like they should since they won’t be effected by the GST cuts anymore and the Bank of Canada is increasing rates which makes people lose homes and unemployment will go up some more. Then suddenly the surplus will evaporate.
Good Post. I had no idea. Well, if they are saving up that surplus for a rainy day, I hope they are investing it wisely in the mean time.
Because we just keep paying. I in fact will end up paying DOUBLE the EI premium this year, because I changed companies and they started re-deducting this year’s premiums.
Maybe someone should raise a stink and write some article about this… whoops, that’s supposed to be me right?
–C8j
BCM, You’ll get it all back when you do your taxes for 2008 though, so it will all work out in the end. It’s not like it’s just money down the tube. Now I know you won’t be able to invest it or put it in a savings account or anything, but it’s not like you area actually paying double the maximum premium.
If you live in a situation where you owe some of your taxes at year end it may actually work out in your favour by reducing the amount owed as well.
triciatim, the surplus has been around for a LONG time. i don’t think next year’s inflation numbers are going to make a big dent at all.
it’s curious how nobody seems to find this a very sexy political story. it gets raised once in a while, everyone says, “uh, yeah, um …” and then it gets sweeped under some silly little scandalous rug again.
in the meantime, programs get cut. last year, the only EI program for artists in british columbia got axed.
I had NO idea the surplus was that huge. WOW!
The following is an exact quote from the NDP website: April 2 2008;”While the Conservatives legalize the theft of $57 billion from the Employment Insurance fund and wash their hands of their responsibility by creating a Crown corporation to manage workers’ money, the Liberals continue to support them. It’s disgraceful.”
And the scuttle butt which I can not confirm – yet – is EI is going provincial in the next year or two, which means WE, the workers, (and remember people – this is money you and I pay into a manditory insurance plan every day we work!) will never know where this surplus has gone.
By the way – EI on your income tax return is a credit… you do not get the “money” back, you get a % of a reduction off your already payed taxes. Think about the interest the Fed.s get to play with off your tax dollars, never mind your tax base.