Quote:
Originally Posted by edslunch
I don't think anyone is arguing against contribution room in general, it's just a question of balancing value with affordability. RRSP defer government tax revenue until they are cashed, but TFSA eliminate it altogether so there is a significant cost in terms of lost taxes. Is that money better spent (or in this case not collected) for a relatively small number of people who can take full advantage of TFSAs or on other programs/cuts that benefit more people?
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So why not tax capital gains on primary residence sales too then?
Over the past 10 years, people have made a LOT of money selling their homes, and that is all tax free... With ~ 75% of Canadians owning homes, that is probably worth FAR more tax revenue for the government than the current TFSA limits.