Like the federal government’s pledge to introduce income-splitting for couples with children under 18, the Conservative’s promise to double the contribution room for TFSAs is also coming under criticism for mainly benefiting the wealthy, reports Maclean’s.

Since TFSAs were started in 2009, Canadians have accumulated $36,500 in contribution room. Maclean‘s columnist Kevin Milligan points out that the current ceiling is likely enough to ensure that low-income Canadians are saving–one of the government’s goals when it established the TFSA. Raising contribution room more amounts to a tax break for wealthy Canadians.

In the 2011 election, the Conservatives promised to double TFSA contribution limits, should the federal budget be healthy enough. If the government plans on going through with the change, it will be in the 2015 budget, expected in April.

Also read:

Increasing TFSA limit would only benefit wealthy

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I believe that increases in the TFSA can benefit a wide range of income brackets. What it really boils down to is how diligent of a saver you are. As a young saver, I have no where near the amount of income as some 40-something year olds, but I still manage to maximize my contributions yearly. It takes a while but it’s completely possible, and a great tax haven. I could see the wealthy benefiting from a $100,000 + limit, but definitely not now.

Tuesday, June 23 @ 12:20 am //////

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