It is silly to suggest that corporations or individual business owners can afford this. Or worse, suggest that they should absorb the legislated increase. The government ordered the increase to wages. Wages are the No. 1 expense for business.
Businesses are not charities.
Businesses employ people in their communities.
In addition to paying more for hourly wages, the businesses must pay more in CPP and EI premiums. Contributions are assessed as a percentage of earnings.
Wynne just legislated another tax increase. By that I mean another way for the Ontario government to make money. She had to get it from somewhere. And it makes her tax increase look like it is the fault of business. Business becomes the fall guy.
The big winner in this is the government. They will make more in taxes.
This is a very simple example, but will illustrate how the government makes more.
An employee is being taxed at 20%, and makes $2/hr more as of 1 Jan. The government makes 40 cents more per hour in taxes from that minimum wage increase. Add to this, the number of employees in receipt of a raise, and the number of hours that business operates, paying the additional wages. The government wins.
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This discussion is too centred on Tim Hortons. McDonalds, Giant Tiger, grocery stores, etc. will feel the effects. The owners of these businesses will have to cut in other areas to compensate. Here are a few examples.
Uniforms may no longer be free or subsidized.
Benefit pkgs may be eliminated, or a higher percentage of the cost will be borne by the employee.
Employees may see reductions or elimination of employee discounts for goods or services.
Community associations/churches/volunteer groups may see fewer donations.
Layoffs may occur.
As for boycotting Timmys, or any other place for that matter, it won't work. You gotta have your daily fix.
Businesses are not charities.
Businesses employ people in their communities.
In addition to paying more for hourly wages, the businesses must pay more in CPP and EI premiums. Contributions are assessed as a percentage of earnings.
Wynne just legislated another tax increase. By that I mean another way for the Ontario government to make money. She had to get it from somewhere. And it makes her tax increase look like it is the fault of business. Business becomes the fall guy.
The big winner in this is the government. They will make more in taxes.
This is a very simple example, but will illustrate how the government makes more.
An employee is being taxed at 20%, and makes $2/hr more as of 1 Jan. The government makes 40 cents more per hour in taxes from that minimum wage increase. Add to this, the number of employees in receipt of a raise, and the number of hours that business operates, paying the additional wages. The government wins.
---
This discussion is too centred on Tim Hortons. McDonalds, Giant Tiger, grocery stores, etc. will feel the effects. The owners of these businesses will have to cut in other areas to compensate. Here are a few examples.
Uniforms may no longer be free or subsidized.
Benefit pkgs may be eliminated, or a higher percentage of the cost will be borne by the employee.
Employees may see reductions or elimination of employee discounts for goods or services.
Community associations/churches/volunteer groups may see fewer donations.
Layoffs may occur.
As for boycotting Timmys, or any other place for that matter, it won't work. You gotta have your daily fix.
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