This is what happened when unions launched a challenge over the fact that
employment insurance premium revenues exceeded the cost of the employment insurance program.
Employment insurance premium revenues declined by $ 945 million (4.1 %), attributable to the decline in premium rates in 2017, from $ 1.88 per $ 100 of insurable earnings in 2016 to $ 1.63 in 2017 (employee rate).
The higher revenues primarily reflect higher
employment insurance premium revenues in the short term and increased personal income tax revenues in the last two years of the forecast period.
For example, the employment and unemployment forecasts are used to forecast
employment insurance premium revenue and benefits.
Not exact matches
About half of the year - over-year increase in budgetary
revenues was attributable to higher personal income taxes, Goods and Services (GST)
revenues and
employment insurance (EI)
premiums.
Among the major
revenue components, personal income taxes increased by $ 5.8 billion (primarily reflecting a 4.8 % increase in wages and salaries coupled with a progressive tax system), corporate income taxes were up $ 1.7 billion (corporate profits were up 15 % but the general tax rate declined from 18 % in 2010 to 16.5 % in 2011) and
employment insurance (EI)
premiums rose by $ 1.1 billion (both the EI rate and insurable earnings subject to the rate were higher).
A far bigger move is being championed by interim Liberal leader Bob Rae — encourage hiring, and forgo $ 1.2 billion in federal
revenues, by cancelling the scheduled Jan. 1, 2012, increase in
Employment Insurance premiums.
Of the $ 3.2 billion year - over-year improvement, budgetary
revenues were up by $ 3.9 billion, primarily due to higher personal income tax
revenues (up $ 3.4 billion, reflecting increases in
employment and average wages) and
employment insurance premiums (up $ 1.6 billion reflecting higher
premium rates and an increase in maximum insurable earnings).
Dampening these increases were lower GST
revenues, down 18.4 %, and lower
employment insurance premiums, down 12.7 %, reflecting a decline in
premium rates in 2017.
The deterioration in the deficit primarily resulted from lower corporate income tax
revenues, down 16.3 % (in part reflecting higher refunds), lower GST
revenues, down 7.6 %, lower
employment insurance premiums, down 12.5 % (reflecting a decline in EI rates effective January 2017), and higher other transfers and subsidies, up 38.0 % (reflecting the timing of payments related to recent budget proposals).
Today, finance minister Jim Flaherty announced a three - year freeze on
Employment Insurance (EI)
premiums, ostensibly because a stronger job market has alleviated the need for additional
premium revenue.
Within budgetary
revenues, gains were recorded in income taxes and
employment insurance premiums, while declines were reported in sales and excise taxes / duties and other
revenues.
Personal income tax
revenues are running above their November 2011 Update projection, while
employment insurance premiums are below their Update estimate.
Liberals: Cut the middle income tax bracket from 22 % to 20.5 % for Canadians earning between $ 44,700 and $ 89,401 a year, amounting to savings of $ 670 a year (or $ 1,340 for a two - income household); create a new tax bracket of 33 % for those earning $ 200,000 a year or more; reduce
Employment Insurance (EI)
premiums to $ 1.65 per $ 100; have the Canada
Revenue Agency (CRA) contact people who have tax benefits but aren't collecting them; cancel income splitting for families but keep it for seniors.