CIBC chief calls for tax changes to help young Canadians struggling to save money

Victor Dodig, CEO of CIBC, is putting a bold idea on the table — and it could have a real impact on the financial futures of young Canadians.

At a recent Globe and Mail conference, Dodig called for targeted tax changes to help Canadians under 30 build up meaningful savings — especially for buying a home. His proposal: raise the basic personal exemption for young people to $75,000, but only if they’re actively saving (at least $15,000 in registered accounts like a TFSA or First Home Savings Account).

Key Points from Dodig’s Proposal:

• Tax-Free Income Threshold for Under 30s: Raise it to $75,000, up from the current ~$15,000 exemption level.
• Conditional on Savings: Young Canadians must be saving at least $15,000 in eligible accounts to qualify.
• Intended Impact: If someone saves diligently under this model, they could have $150,000–$250,000 in savings within 10 years — enough for a strong down payment.
• Why It Matters: With home prices and cost of living rising and job markets stagnating, young adults are struggling to get ahead. Dodig argues this is more than a housing issue — it’s an intergenerational fairness issue.

The Broader Context:

• Current System: Taxation in Canada is based on income and province, not age.
• Recent Federal Move: PM Mark Carney is planning a cut to the lowest income tax rate from 15% to 14% (effective July 1), costing $27 billion over five years — a blanket cut not targeted to young people.
• Dodig’s Take: The tax system should recognize that young people are being locked out of ownership and opportunity — and policy should reflect that.

Why This Matters:

Dodig’s suggestion challenges the traditional one-size-fits-all tax structure and injects the idea of age-targeted financial policy tied to personal responsibility (saving). It could create a financial incentive structure that rewards future planning and helps young Canadians build real momentum toward homeownership — not just temporary relief.