The Harper government is scaling back an increase to employment insurance premiums in the face of warnings that hiking payroll taxes would cost Canadian jobs and damage the Conservatives' tax-cutting reputation as an election looms.

A two-year freeze on EI premiums is scheduled to expire on Jan. 1, with premiums set to rise by the maximum amount allowed under a new process that empowers an independent Crown corporation to set rates.

Read the entire Globe and Mail article here.