moved for leave to introduce Bill C-364, an act to amend amend the Income Tax Act (change RRSP deduction to a tax credit).
Mr. Speaker, the purpose of the RRSP system is to assist Canadians in building up capital to provide a reasonable retirement income. It is not intended to shelter wealth or to defer taxes on the amounts accumulated beyond the amounts required to provide for that reasonable retirement income.
Tax fairness and equity must be protected within our Income Tax Act. That includes making sure that the tax benefits do not unreasonably favour certain taxpayers over others. In the current RRSP system the RRSP deduction favours high income earners over low income earners.
Therefore to address these matters this bill proposes to convert the RRSP deduction to a non-refundable tax credit and to establish a lifetime contribution limit on RRSPs.
(Motions deemed adopted, bill read the first time and printed.)