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Investing.com -- Conservative Leader and Prime Minister candidate, Pierre Poilievre, has proposed an additional CAD$5,000 ($3,500) in tax-free savings for Canadians who invest in local companies. This proposal, if implemented, would be the first incentive of its kind for the Tax-Free Savings Account (TFSA) since its inception in 2009.
Poilievre argues that corporate insiders profit from moving funds out of Canada, which allows them to avoid Canadian tax. He believes that this has led to Canadians paying more when they invest in their own country. He also asserts that the Liberal government has increased taxes and obstructed projects, which has resulted in CAD$500 billion in investment being transferred from Canada to the U.S. This, he suggests, has left Canadians vulnerable to tariffs imposed by President Trump.
Poilievre cited the example of Prime Minister and election rival Mark Carney, a former head of the Bank of Canada, who advocated for higher taxes in Canada while his company invested in American coal. Carney is campaigning as head of the Liberal Party against Poilievre’s Conservatives in an election set to begin April 28, and has seen a boom in support following Trump’s tariff announcements and his Canadian annexation wishes.
The Conservative leader stated that Carney opposed Canadian pipelines, yet purchased pipelines in the Middle East. Furthering Poilievre’s point, after threats of tariffs from President Trump, Carney announced his company, Brookfield Asset Management (TSX:BAM), would relocate its headquarters and jobs from Canada to New York.
In an effort to counter this trend, Poilievre has announced the next step in his "Bring it Home" tax cut plan, introducing the Canada First TFSA Top-Up. Under a Conservative government, Canadians would be allowed to contribute an extra CAD$5,000 to tax-free savings accounts for investments in Canadian companies. This would be in addition to the existing CAD$7,000 limit, which can be invested anywhere.
The additional CAD$5,000 contribution would specifically support Canadian companies that employ Canadian workers and pay Canadian taxes. To facilitate this, Poilievre’s government would create a definition that will guide financial institutions and advisors on which investments qualify for the Canada-First TFSA Top-Up.
Poilievre believes that this initiative will attract billions of dollars of investment and jobs to Canada, while also providing savings for the average Canadian. He contends that it will stimulate investment in Canadian businesses, leading to increased employment and tax revenue. Furthermore, it is expected to enhance Canada’s self-reliance and sovereignty, enabling the country to stand independently and respond effectively to U.S. tariff policies.