(November 17 – 16:15 ET) – When the next government is formed, the Investment Dealers Association will be lobbying the new Finance Minister for improved tax relief and increased debt reduction.

In a letter to former Finance Minister Paul Martin, the IDA expressed support for the capital gains rate and personal tax reductions expressed in October’s mini-budget. Canada would still be one of the highest taxed nations, alleges the IDA. The top rate should kick in at a much higher level than proposed in the mini-budget – $100,000 in Canada compared with $439,000 in the U.S.

The IDA says basic personal amounts should be increased further, too. “With surpluses expected in the foreseeable future, Canadians at all income levels deserve to have a larger portion of their income exempt from taxes.”

There should be a stronger commitment to reduce the debt, says the IDA. For example, the $3 billion contingency fund for annual debt repayment could be doubled. “Consideration should be given to legislating a repayment schedule that would guarantee minimum future repayments.”

It also recommends that RRSP contribution limit of $13,5000 be raised at a rate of $2000 per year until it reaches $27,000.
-IE Staff