I'm satisfied with that explanation. I think that by changing this from after- tax to pre-tax, we're creating a major tax benefit which comes very close to being a tax loophole, since young people will pay virtually no tax on these funds. I'm not opposed to encouraging parents to save for their children's education. What I'm saying—and that's the substance of my amendment—is that if we open the door to a limit of up to $18,000, that will prove to be far too costly from a fiscal standpoint, besides which only the wealthy will benefit from this measure.
The annual limit proposed in my amendment, namely $5,000, seems more than adequate. Over a period of 20 years, for example, contributions would total over $100,000. Everyone who contributes to an RRSP knows that with compound interest, which in itself is tax exempt, it is likely that the plan will grow to somewhere nearer to $300,00. Therefore, I think my amendment is entirely reasonable. I think it's a good compromise that will help the middle class without giving wealthier individuals an unfair advantage.
One more thing: earlier, Mr. Wallace stated that under the current system, money invested was after-tax dollars. Nevertheless, there is a benefit here because the value of the funds increases and the money is sheltered from tax. Therefore, more compound interest is earned. However, as it now stands, the bill provides a much bigger tax advantage and that's why we're proposing to limit contributions.