EI Premium Rebate is Political Marketing – Letter to the Editor by Tom Manley

The old saying is “any free advertising is good advertising”. The Harper Conservatives exploit that by getting air time over a useless rebate in EI premiums. In fact, they get double messaging by falsely claiming job creation benefits.

For one, a rebate of pennies in EI premiums to small businesses does not create jobs. A business creates a job when their is growth in production and when customers want their products. A small business does not give a moment of consideration to the cost of EI premiums.

Secondly, the business will merely pocket the savings in EI premiums. It is a nice reduction in the cost of employment, a small bonus to the business owner, but it does not entice the owner to hire another person.

Thirdly, it is a political trick. The government should simply reduce EI premiums across the board. Instead, Harper targets small businesses exclusively and arranges a periodic rebate to remind the business owner that she is receiving a gift from the government with her own tax money. It is all an expensive vote buying scheme, heavy in administrative cost, and completely irrelevant.

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