The head of the Investment Industry Association of Canada on Thursday reiterated the association’s call for reductions to capital gains tax rates and amendments to the RRSP and RRIF programs.

Appearing before the House of Commons Standing Committee on Finance, Ian Russell, president and CEO of the IIAC, commended the federal government on its “judicious mix of public spending and growth initiatives to improve the functioning of Canada’s economy and capital market.”

However, to promote economic growth and assist Canadians approaching retirement, he recommended reductions to capital gains tax rates and amendments to the RRSP and RRIF programs.

“Strategic and careful reduction in capital gains tax rates will stimulate risk-taking and reverse the significant decline in equity financing for small business,” said Russell.

He argued that a reduction in capital gains tax will spur business and job creation, enhance productivity and economic activity.

Russell said the IIAC looks forward to working with the federal-provincial working group on Retirement Income Adequacy.

He said the working group must introduce reforms to assist older Canadians, as well as consider other approaches to promote the growth of retirement savings.

“Structural tax reforms will not help the baby boomers, actions must be taken now to assist them in recouping losses in their retirement portfolios,” added Russell.

IE