Quote:
Originally Posted by Sylvanfan
Besides, people are victims of their own fear or ignorance. The nation gives them RRSPs, and they use them for house down payments. They get TFSAs, and they turn them into growthless savings accounts. They’re offered half-tax on investments, but they buy GICs. They get a huge gift on dividends, and they want a rental condo. The country drops rates, and they cannot borrow enough.
It’s not about fairness any longer. It’s about taxing stupid.
Perhaps his point is that this country is not doing enough to inform stupid poor people like myself about how I constantly manage to shoot myself in the nuts.
Raising the TFSA limit is going to be of the greatest benefit to wealthy people who have the best means to afford higher taxes. The eventual loss in tax revenue will than be passed onto the less intelligent who don't use it in the form of more taxes, or higher taxes on their meager earnings, while politicians and other wealthy people who have the means to pay more continue to enjoy the greater benefit.
In it's current form the TFSA provides a reasonable means for a working person earning 50k or less a year a way to grow a decent retirement fund. His example of a 30 year old putting away 5500 a year for 30 years essentially building up to be 30k a year in tax free earnings seems to suggest that. They sell it as that. In reality it's just become a way for those who are sharpest with their money to skirt paying taxes.
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The thing is there is help for people to get advice on how to structure these things and use these accounts to their advantage. I totally understand that not everyone understands how to use a TFSA or RRSPs or the best way to hold their savings or things like that. But those people should either do the research and learn it themselves or go see someone. There are plenty of resources for people who want to figure these things out.