The Investment Dealers Association is proposing several measures designed to support the capital markets.

A recently released position paper by the IDA is directed at improving capital formation, the health of the capital markets, and Canadian competitiveness on tax rates.

The document suggests that government limits on foreign ownership should be abolished, along with interference in corporate mergers.

It also recommends that small business be given some tax relief by: removing restrictions on limited partnerships, dropping the capital gains tax on foreign investors, and dropping the 10% withholding tax on interest payments to foreign investors.

The position paper also advocates doubling the RRSP tax shelter limits to $27,000, increasing the limit by $2,000 per year.

It supports cutting the capital gains inclusion rate from 50% to 30% for investments held longer than two years, along with the elimination of capital taxes, lower personal tax rates and higher income thresholds to make the Canadian system competitive with the US system.