Quote:
Originally Posted by MrCallahan
Can someone help explain why abolishing the TSFA increase is a bad thing? everyone say it does nothing but help the rich, and doesn't help lower-middle class. I can see how it can help the more wealthy, by increasing their tax-free shelter. But why can't everyone take advantage of that?? for people that could be putting a few hundred per month in an mutual fund, why not move it into the TSFA? that way they won't get taxed on their gains during growth periods if they decide to pull out money?
I'm not a pro when it comes to the finance or the political world, so trying to wrap my head around that one stance that everyone except the conservatives seem to be against.
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I'd think mostly because people don't have $10 000 for TFSA and maybe another $15 000 for RRSP's per year to spare. Maybe people can only save a few thousand a year so offering the tax breaks to those who have enough spare to maximize their benefits ends up taking those tax dollars away from govt revenue, and in the end may cost low income earners more because that money has to be made up somewhere. Either in cuts to government services or increasing other taxes.
Basically the wealthy can use the benefit to its fullest, the poor to middle income can't.