Methinks ATax Savings Account Is Sound Thinking

Tax savings account is a smart thing. It's applying a common sense approach to personal and household savings. It encourages savings in a RRSP style account only it is non-registered. In other words, without all the same restrictions. It's a great idea. It will become one of the most significant moves not unlike the introduction of RRSPs five decades ago.

Ignore it at your financial peril.

On what rational level can this possibly be a bad thing? For once the middle class has something come its way. If there is some resistance (and from what I can tell this measure is thankfully enormously popular among Canadians) it is without substance. I pulled this gem from the "Socialist Project":

"Beginning in 2009 Canadians will be eligible to contribute up to $5,000.0 per year to such an account and any interest or capital gains from this account will be tax free. It's an interesting proposal in that it extends the tax avoidance movement into more popular terrain. The contribution limit makes it appear that this is clearly not aimed at high-income earners. However, for the 40 per cent of working Canadians who earn $40,000 per year or less, the prospect of saving anything is rather dubious. Instead, the TFSA will be precisely another tax shelter ‘toy’ for those with sufficient income to allow for disposable income. Indeed, for a high income earner able to sock away $5,000.00 per year for say, 8 years, there will be a nice tax free bundle of approximately $50,000.00 for a down payment on an imported luxury car. When it's all said, this is really a tax avoidance instrument through which to shelter one’s play-time money."

Incredible really. In other words, 40% of the population is allowed to hold back 60%? It all adds up to one thing: you're not allowed to succeed in Canada. You can only progress as far as the weakest link will allow you. More socialism and regulation leads to a bigger black market. For example, in the province of Quebec the unions dictate the terms of our progress and guess what? It's a dysfunctional black hole here. The cultural and economic sclerosis is sickening to watch unfold. If you're smart, work hard and save money disposable income is seen as a sin. Heaven forbid people are allowed to create some personal wealth. eh?

And how does he allow himself to presume this is where the $50 000 will go? Besides, what business is it of his where people spend THEIR MONEY? This thinking is a one-way ticket to nowheresville.

The fact is that this is very doable.

This is a prudent idea with long term benefits to Canadians - sinister neo-liberal plots notwithstanding.

Next up: Capital gains relief.

This is how you create real net worth. Only through this way can you achieve a real ability to build a compassionate society. It starts with the individual; not the government.