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Originally Posted by Zarley
The only FP article I can find on the subject draws heavily from the report I quoted. It actually shows a fairly equitable distribution of TFSA holders and maximizers across income levels:
So it really depends the bias that one interprets the numbers with. |
There's a single quote from that report in the article; that's not drawing heavily from it. But really, this is all just obfuscation. The numbers are directly from the CRA and they speak for themselves; 95% of earners under $60K weren't maximizing their contributions under the $5K limit and a good portion of those who did were obviously secondary earners in a higher income or higher net worth household. Single working adults earning $15K don't have $5500 to put into a TFSA, yet around 100K Canadians in that income range did that.
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The increase to $10,000 has already taken effect and the Liberals propose reducing this to $5,500 (likely to take effect next year rather than retroactively). Increased tax revenue from the $4,500 cut in future years would offset the middle class tax cut. Please stop arguing semantics.
I never said it was. I said that middle class Canadians should be encouraged to invest and improve their financial habits and that the TFSA is a great vehicle to achieve this goal. Cutting the contribution limit based on the premise that TFSAs only benefit the rich is a dangerous misrepresentation.
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But the lower and middle classes simply havn't been maximizing contributions under the old system so increasing it does nothing for them as a group. All it does is make their income tax dollars subsidize those individuals with the means to put aside $10K a year for investments. Much like income splitting, it's a tax cut for higher earners that is paid for by lower earners.