(November 18 – 10:45 ET) – The Canadian Association of Insurance and Financial Advisors is joining the chorus of voices telling the federal government what to do with its budget surplus – calling for it to declare war on Canada’s $577 billion debt.
CAIFA made its plea to the Finance Committee, jointly with the Conference for Advanced Life Underwriting. It recommends that the government first allocate 25% to 50% of the fiscal dividend to debt reduction, with the remainder available for tax cuts or spending increases.
The “pay yourself first” method, “a basic concept in financial planning, is a sounder and more realistic approach to debt reduction than trying to grow our way out of it,” said CAIFA’s CEO Dave Thibaudeau.
Nevertheless, CAIFA also called for tax cuts, particularly for high income Canadians. It also recommends that the RRSP contribution limit be doubled to $27,000 over five years, in increments of $2,700.
-IE Staff
For more please see: