Canadian Capitalist

The C. D. Howe Institute thinks that any proposal by the federal government to tinker with the CPP is a bad idea:

These projections and the dismal record of provident funds elsewhere add a worrisome aspect to even the benign-sounding proposal in the 2006 federal budget to tuck extra surpluses into the CPP’s fund (Canada 2006, 56-57). That transaction would breach what has up to now been a solid wall between the CPP and the regular federal budget. Create a hole through which money repeatedly flows between the two, and the odds are high that one day the flow will go the other way.

Despite my enthusiasm for any tax cut, I think the Institute makes a great point. If we let the government’s hand into the cookie jar, someday the cookies might start disappearing.

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