Quote:
Originally Posted by Zarley
I believe you're quoting figures from the Broadbent Institute report, which has a decidedly anti-TFSA bias, so I'd take those with a grain of salt. The report also fails to consider any public benefits derived from increased investment activity due to the program. |
Nope, they were taken from a Financial Post article which were taken directly from the government's own numbers.
Regardless of the source, the facts are the facts, and the vast, vast majority of lower and middle income households derive no benefit from increasing the contribution limits.
Quote:
Because you are replacing something that incentivizes disciplined savings and investment (good behaviour), with a tax cut that will result in increased spending for the majority of those affected (poor behaviour).
At the beginning of the program, many were shifting savings from non-reg accounts to TFSAs. Given this, maximization rates were bound to decrease. The fact that 2/3rds of eligible Canadians have not opened accounts points to a shortfall in personal finance education in this country and generally poor financial habits - another issue that needs to be tackled.
|
They're not proposing replacing anything. They want to maintain the limits that have existed up until this year.
Why is $10K all of the sudden some magic, inalienable number that is beyond reproach? Obviously there is a point at which raising the exemption no longer serves the majority of Canadians, so where is that? Based on the data I'd say at around $5K, or perhaps even lower.