Victor Dodig urges $75,000 tax break for under-30s and warns stalled trade and investment hurt growth
Canadian Imperial Bank of Commerce CEO Victor Dodig has proposed a tax exemption for Canadians under 30 to help them save for homes, according to remarks reported by The Globe and Mail.
Dodig recommended raising the income tax exemption threshold to $75,000—up from the current $30,000—on the condition that individuals save at least $15,000 in a tax-free savings account, retirement savings plan, or other eligible accounts.
Dodig stated that the proposal aims to support young Canadians facing affordability challenges.
He said the plan would allow them to save for a home over the next decade, potentially reaching $150,000 to $250,000 for a down payment.
He added that many young Canadians feel there’s nothing available to support them, and emphasized the need to provide help.
As per The Globe and Mail, Dodig pointed to Canada’s tax system as a contributing factor to this problem, noting that age currently does not influence tax obligations.
The federal government’s planned cut to the lowest personal income tax rate—from 15 percent to 14 percent on July 1—is expected to cost $27bn over five years.
Dodig warned that many young people cannot contribute meaningfully to their tax-free savings accounts or retirement plans and said, “One of the biggest problems today is that people can’t afford a home.”
According to Bloomberg, Dodig described Canada’s economic condition as being in “suspended animation,” citing stalled investments, ongoing trade uncertainty, and a labour market under stress.
The unemployment rate has reached 7 percent following four consecutive months of weak job gains or losses.
He added, “Our commercial banking clients are tentative. Large corporates are still moving money around and getting business done, but things are subdued and people are waiting for a clear environment on the trade front.”
He suggested that the government must attract more risk capital, remove internal trade barriers, and implement tax reform, especially in light of US tax policy.
As reported by Bloomberg, Dodig said, “This is going to take a decade, a decade and a half,” comparing the situation to placing the country on a “wartime footing.”
Dodig also urged Prime Minister Mark Carney to focus on long-term productivity goals, stating at a Globe and Mail event that “change is not going to happen overnight. It’s probably going to happen over the course of a decade.”
He added, “Wars typically last up to a decade … This one will be longer than a year.”
According to The Globe and Mail, Dodig said the federal government should expand policy efforts to encourage business investment and address key US irritants in the bilateral relationship, including removing the digital services tax and increasing defence spending.
“This uncertainty is not helpful,” he said, referencing hesitancy among clients. Dodig cautioned against reciprocal tariffs with the US, saying trade tension is “not good for business for Canada, or the United States, or Mexico.”
He also stated, as per Bloomberg, that the best solution to housing supply challenges is to incentivise developers to build more homes while supporting buyers through targeted tax relief.
Dodig, who is set to retire on October 31 after more than 11 years as CEO, said he prefers to focus on the strength of the institution, stating, “You want to leave the institution that you take on even better than when you inherited it.”
