Advisors ask Ottawa to raise the RRSP contribution age to 75
Scotiabank Economics estimates federal announcements since April approach $110bn, of which “only about half (~$63 bn) would carry an incremental fiscal cost.”
Randall Bartlett, deputy chief economist at Desjardins, told The Canadian Press the government’s classification of spending is “unclear, erroneous and, quite frankly, self-interested,” and that near-term deficits should come in lower on the energy windfall.
“As oil prices start to fade going forward, when that tide goes out, we’re going to see who’s not wearing their swimsuit,” he said.
Ottawa’s Productivity Mega Deduction, announced September 15, is projected to cut the marginal effective tax rate on new business investment to 6.4 percent from about 13 percent.
Charles Lammam, writing in The Hub, puts its cost at $8.5bn a year, roughly the fiscal weight of cutting the federal corporate rate from 15 percent to 13 percent.
