Mr. Speaker, many of my constituents have contacted me recently regarding the advisability of taxing RRSPs. Many of them oppose taxing RRSPs because they are aware of the importance of RRSPs to individuals who are not employed by institutions and who have no other way of saving for their retirement. Taxing RRSPs would afford such people less protection than those who work for government, large corporations or other institutions. As a matter of principle such unequal treatment is unfair.
Taxing RRSPs runs counter to our government's active encouragement of the growth of small and medium size enterprises. Entrepreneurs running these businesses rely on the RRSP system to save for their futures.
Finally the Canadian savings rate is low. Investments in RRSPs may reduce immediate government tax revenue but create pools of capital for the benefit of all Canadians. This source of capital must not be forsaken merely to encourage immediate government consumption.