Bill C-2, An Act To Amend The Income Tax Act
March 11, 2016
Bill C-2, ‘An Act to Amend the Income Tax Act’, is flawed. One example is that it proposes to roll back the maximum Tax-free Savings Account (TFSA) contribution. The TFSA was an initiative that our government brought in several years ago, the most important savings vehicle that Canadians have seen since the advent of the RRSP. It has been incredibly popular and it was well received by Canadians from all income brackets. What the tax-free savings account does is offer a little bit of a shelter against the negative impacts of inflation when it comes to paying taxes, as one would not have to pay tax on that fake growth. It protects all of the growth, both inflation and real growth, from the tax man. When did it become wrong for Canadians to have the ability to save more of their hard-earned money tax free?
In this Bill, the Liberal Government is planning to reduce the TSFA contribution limit from $10,500 to $5,500. I realize that not all Canadians would be able to contribute the full amount each and every year, but the TFSAs have been structured so that there is a carry-over element. If one cannot max out their contributions in one year, they do not lose it the next year.
Prime Minister Trudeau believes that having a tax-free savings account will only benefit the rich and will be paid for by the next generation of Canadians. Really? Here we have a Prime Minister who is saddling the next generation of Canadians with billions of dollars in new debt, and he is worried about people having too much money in their savings account!
Canadians deserve better!