Quote:
Originally Posted by opendoor
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.
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The middle classes haven't been SAVING MONEY, period.
So again, I ask: Why should savers like myself be punished since others would rather have expensive houses/cars/vacations/whatever instead of an unsexy TFSA?
I mean, may as well knock back RRSP contribution limits too, since only around 24% of people in Canada use those.
And why stop there? Why not add a 2nd tax onto anyone saving anything over 4% of their income, since that is what the average Canadian saves.
Obviously I am being facetious, but my point is, TFSA savings and savings in general is NOT ONLY rich getting richer (which it is) it is more a reflection of the priorities of the "average" Canadians... they would rather blow their brains out on debt than prepare for those 20-30 years where they won't be working.
This isn't upper vs middle class, this is just flat out punishing people who are responsible with their money.