Don't Limit Canadian Investors' Access to Foreign Assets, Says William Robson
Rumors are circulating that the Canadian government is considering restrictions on the foreign assets Canadians can own through their pension plans and RRSPs. William Robson, CEO of the C.D. Howe Institute, argues against such limitations, pointing out that slow investment growth in the country is primarily due to taxes and regulations reducing asset returns. Robson suggests that imposing tax penalties on foreign investments or enforcing industrial-policy-style mandates on pension plans would be counterproductive. He highlights the negative consequences of past restrictions and emphasizes the need for principled economic policies, including coherent environmental regulation, resource development, responsible government spending, and stable tax policies, to encourage investment and boost productivity. Robson concludes that limiting access to foreign assets would only hinder investment, productivity, and living standards in Canada.
The Potential Impact of Limiting Canadian Investors' Access to Foreign Assets on New Businesses
If the Canadian government imposes restrictions on foreign assets for pension plans and RRSPs, it could have a significant impact on new businesses. As William Robson, CEO of the C.D. Howe Institute, points out, slow investment growth in Canada is primarily due to taxes and regulations that reduce asset returns. If the government imposes additional limitations, it could further stifle investment growth.
Implications for Startups and SMEs
For startups and small to medium enterprises (SMEs), these restrictions could limit their ability to attract foreign investment. This could hinder their growth and expansion opportunities, making it more challenging for them to compete in a global market.
Need for Principled Economic Policies
Robson's call for principled economic policies, including coherent environmental regulation, resource development, responsible government spending, and stable tax policies, is particularly pertinent for new businesses. Such policies could encourage investment, boost productivity, and ultimately, enhance living standards in Canada.
In conclusion, the potential limitation on access to foreign assets could pose significant challenges for new businesses in Canada. It underscores the need for principled economic policies that foster a conducive environment for business growth and development.
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