Liberal, Tory, same old EI abuse

Tom Brodbeck points out that the Cons have predictably done next to nothing to change the Employment Insurance surplus that they complained about for ages:

The Employment Insurance Commission this week announced a small cut to EI premiums effective Jan. 1, 2007.

You'll save a whole seven cents per $100 of insurable earnings come the new year. That means someone earning $30,000 a year will save about $1.75 a month.

If you're an employer, the premiums you pay for your workers will fall 10 cents per $100 of insurable earnings...

What the EIC doesn't tell you, however, is that despite the small premium cut the massive EI surplus -- pegged at $48 billion last year -- is projected to grow by another $1.5 billion this year, even though the federal government claims EI is now operated on a break-even basis.

According to Human Resources Development Canada's own 2005-2006 estimates, the EI surplus is expected to grow to $49.5 billion in 2006...

And if you think the Conservative government in Ottawa is doing anything differently with this fraudulent scheme than their Liberal predecessors, think again. They haven't changed a thing...

They're following the same legislation the Liberals passed and they, too, continue to overcharge workers, including many part-time employees who are forced to pay into EI but are ineligible for benefits.

Naturally, I'd disagree with Brodbeck on a couple of points: the "fraudulent" description goes too far, and contrary to Brodbeck's apparent view there's no reason why a proper fix to EI shouldn't also include some increases in eligibility and benefits (particularly to ensure that part-time workers aren't left out in the cold).

That said, EI premiums are generally about as damaging as a government revenue source can be in specifically targeting both sides of an employment relationship and thereby providing a direct disincentive to employment. Which means that they should be anathema to virtually all shades of the political spectrum to the extent that they're not legitimately used to fund EI itself.

And with the Cons now joining the Libs in putting a convenient source of added money ahead of anything resembling principle, it's clear that new leadership is needed to ensure that EI finally resumes its proper role as an insurance program rather than a cash cow.