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Originally Posted by I_H8_Crawford
Just curious - how are your taxes subsiding me saving? I already paid taxes on the money I am placing into my TFSA, so frankly I am paying my fair share.
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And returns on that money aren't taxed, so essentially the government is subsidizing your investment returns. Lost revenue from TFSAs is already costing over $1B a year and that will increase dramatically as more and more untaxable money builds up in them.
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So if no one is using this room (the argument used to justify rolling it back), how on earth is it costing Canada billions of dollars?
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Plenty of high earners use the room. And with compound interest over decades there will be trillions of dollars in untaxed investment income. The Parliamentry Budget Office estimates current losses to revenue at over $1B a year but those will increase dramatically over time, doubly so if the $10K limit is maintained.