Federal minister of Finance Jim Flaherty
RESPs & TFSAs: Same effects , why only one attacked?
Vancouver B.C. - Friday, Marcvh 14, 2008 by: Larry Kazdan

The Finance Minister threatened an election over one form of tax loss, tax-deductible Registered Education Savings Plans (RESPs). That revenue lost over time due to Tax-Free Savings Accounts (TFSAs) is of like magnitude is unmentioned.

Sandy Cardy, senior vice-president of Mackenze Financial's view is "TFSAs will profoundly affect estate planning, given they make it easy to bequeath huge nest eggs ($1-million-plus over 40 years of TFSA savings, Cardy estimates)." (1)

According to Andrew Teasdale of the Tamris Consultancy through TFSA's "There is no reason why most investors should not be able to avoid tax completely on non-RRSP holdings." (2)

A TFSA is of no benefit to those to those poor or indebted.

Middle class families who have little discretionary dollars left after meeting the costs of raising families and paying on mortgage benefits may employ a TFSA as a means of earning tax free interest on short term savings for vacations or cars.

The greatest benefits will accrue to those having the capability of accumulating $5 000 yearly from age 18 on ward in their own and family's accounts as early as possible and with personal or purchased knowledge move the money in and out of the accounts to advantage.

Both programmes will lower tax payable by those who have. Flaherty is attacking RESPs but completely is leaving unstated that TFSAs as well cut taxes for the wealthy, decrease government revenues, and lead to the consequential reduction of government programmes and social services. That both are of this nature: "For he that hath, to him shall be given: and he that hath not, from him shall be taken even that which he hath."

Larry Kazdan
C.G. A.

Chevreau, Jonathan, TFSA will shake up investment industry, March 5, 2008, National Post


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