May 14, 1964 (26th Parliament, 2nd Session)

PC

Lloyd Roseville Crouse

Progressive Conservative

Mr. Lloyd R. Crouse (Queens-Lunenburg):

Mr. Speaker, I wish to speak only briefly on the bill. It is not my intention to delay the minister in presenting his arguments. However, since holding his present portfolio I believe the minister has been toying with the possibility of discouraging foreign investment in Canada. Instead of discriminating against foreign investment I believe he should reconsider his views and do what he can to encourage capital investment from any country. Certainly we in Nova Scotia have seen considerable expansion in industrial growth due to capital which has been brought into our province from the United Kingdom, and especially by Swedish interests. I should like to leave the thought with the minister that he should not worry too much about where capital comes from because once it is invested in Canada these companies generally become good corporate citizens.
I believe further that we need to encourage Canadian investment in common stocks. According to recent reports Canadians today have something like $800 million or more in their savings accounts. This is a larger 20220-207
Income Tax Act
amount in reserve than ever before in the history of the nation. If we are to encourage the release of this capital we must make investment in Canadian common stocks more attractive to Canadians.
At the present time investors are allowed to deduct 20 per cent of the amount of their dividends from common stocks when paying their income tax. This encourages Canadians, of course, to participate in buying the common stocks of Canadian companies. But if we are to release the great fund of money at present resting in savings accounts I suggest that the minister should give some thought to increasing the percentage of dividends on common stocks, which is deductible for income tax purposes. I believe it could well be increased from the present 20 per cent to 30 per cent or even 33J per cent. If this action were taken it would provide a greater incentive for Canadians to participate in the economic growth of this country.

Topic:   INCOME TAX ACT
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