The TFSA contribution limit increase to $10,000 per year will disproportionately benefit high earners and wealth holders, says public finance expert Rhys Kesselman on Macleans.ca.
The federal government’s claims that TFSAs are a boon to modest-income Canadians ignores the reality that most taxpayers who are eligible for a TFSA haven’t chosen to open an account, he notes.
“In fact, fewer than two out of five eligible individuals had a TFSA by the end of 2013, fully five years after the tax break was introduced,” Kesselman writes.
And rates of participation in TFSAs show a strong positive relationship to income: 26% for those with individual incomes between $10,000 and $20,000; 45% between $45,000 and $55,000; 58% between $100,000 and $150,000; and 71% above $250,000.
For the whole story, visit the Maclean’s website.
Also read: