Quote:
Originally Posted by Regorium
If you only have an extra $100 at the end of the year, then the increase in TFSA space does nothing for you. That's the point. The $5,000/yr was already enough.
I am of the belief that the vast majority of Canadians don't put away $25,000+ each year (max RRSP, max TFSA). TFSA's are already brutally expensive in terms of government policy, and the benefit only goes to the top 10%.
|
Why can't these people contribute to TFSA first before putting money into RRSP's? And how much more expensive would the TFSA be for the government over the RRSP deduction?
Most of my friends throw money at an RRSP in Feb so that they can get a tax refund. And then blow said refund on junk. They could take that refund and put it into a TFSA if they so wanted to, but I think the problem is a mental one. They see it as found money and are willing to spend it as such. And then complain that TFSA's only benefit the 10%. TFSA's benefit everyone, but the majority aren't forward thinkers, only living in the present.