Quote:
Originally Posted by GGG
This is bad policy. This policy will affect 0 investments and is really just a future tax cut that will also increase OAS and GIS costs. It has no cost for the government today and imposes future costs on government. You notice this isn’t being proposed on RRSPs where the tax impact is felt today.
Most people are running an internationally diverse portfolio with varying amounts of home country bias. So this just encourages investors to split their American investments to their RRSP and their Canadian investments to their TFSA. This is already the most tax efficient method for investment as the TFSA as the TFSA is taxed on American dividends while the RRSP is not.
So this is a veiled way to increase tax breaks for Me while wrapping it in the Canadian Flag.
|
But having an internationally diverse portfolio getting taxes vs Canadian not taxed plays into the ROI on the full portfolio
This only (really) affects people with maxed TSFA and RRSP's or post RRSP retiries with a high investment portfolio, but if one asset class is taxed (non Canadian) and another isn't (TSFA) the ROI on Canadian investments goes up