CIBC CEO Victor Dodig is urging the federal government to introduce targeted tax breaks to help Canadians under 30 save for homeownership, calling it one of the country’s most pressing issues.

Speaking at a Globe and Mail conference, Dodig proposed raising the income tax exemption threshold to $75,000 for young adults who save at least $15,000 in designated accounts such as TFSAs or first-home savings accounts.

“People may not like it, but I think it has some merit,” he said. “They’ll save for a home so that when it’s time to buy 10 years from now, they’ll have saved up to $150,000, $250,000 and have money for the down payment.”

Currently, Canadians earning under $57,375 pay 15 per cent in federal income tax. A planned July 1 tax cut will reduce that rate to 14 per cent, costing Ottawa an estimated $27 billion over five years.

Dodig said the current tax structure does little to support young Canadians, who are struggling in one of the toughest job markets in decades.

“Young Canadians feel like there’s nothing in it for them, and we need to help them,” he said. “I think you probably have to do something on that tax rate as you get into your early 30s and solve the housing problem.”