Quote:
Originally Posted by I_H8_Crawford
just curious... Why?
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I could go into a lengthy explanation and I write a newspaper financial column and I may write on this, but here is the short version.
Governments can afford the lost tax revenue and doubling the TFSA limits helps higher-income earners, but does virtually nothing for those who most need a tax break - low-income folks.
It's estimated this would cost the federal government close to $16 billion a year. I don't remember if the number I saw is federal only or includes the provinces, which I believe is another $7 billion (thereabouts) on top of the $16 billion.
I understand that people want tax laws that will help them, and believe me I'll use it also if the TFSA contribution room doubles, but we have to look at this more globally.
Over the last few days I've read a couple of reports from tax experts who also feel that doubling the TFSA limits would be a bad move. Their reasons are basically those I'm indicated above.
While I'll continue to max out my and my wife's TFSAs if the opportunity is there, this is not good strategy.
By the way, RRSPs get a lot of flack but they're still a very worthwhile strategy for most higher earners. I max those out also, although I may curtail that as I approach retirement.