Flaherty's TFSA is simply an incentive/gimmick to get Canadians to collapse their RRSP and start a TFSA and/or stop contributing to RRSPs......the government is highly covetous of the half trillion dollars “tied up” in RRSPs and the deferred taxes contained therein, that they are salivating over.
Switching out of an RRSP into a TFSP is just the “trick” needed to bring this about.
I told the Liberals on day one that this is what Flaherty is likely up to.....to kill the RRSP as we know it. Still waiting for them to clue in and call a spade a spade. Who knows. maybe the Liberals also secretly covet that “reserve” of RRSP tax dollars and the opportunity to accelerate this stream of taxes under “their watch”.
It was a Liberal government that introduced RRSPs 50 years ago, meanwhile it is the current Liberal opposition who are allowing this TFSA attack on RRSPs (and others, including the gross disparity between the double taxation of income trusts in RRSPs versus single taxation in pension funds) to go unchallenged.
You are right. The cons are hoping to destroy the RRSP to accelerate tax collection. My sister (who is not too knowledgeable of such matters) just asked me whether it would be better for her to cash her RRIF and put the money in a TFSA. If she asks herself that question you can bet that a few millions others will do the same.
Thursday, July 3, 2008
Posted by Fillibluster at 11:34 AM