You are only allowed to contribute a % of your employment income to an RRSP. I believe it is 18 %. Investment income does not qualify.  This is money, retained earnings, which people wish to leave in a company for use at a later date. They will either use it to prop up a company in lean times, use it for retirement, or invest in something else. The government wants to take it now, and prop up their indebted company, aka Canada, instead of controlling their own spending. Things must be worse than they are letting on if they are as desperate as this.