PETITION TO THE GOVERNMENT OF CANADA ON THE TAX FREE SAVINGS ACCOUNT (TFSA) LIMIT
To: the House of Commons
CC: the House of Commons in Parliament assembled; the Government of Canada
We, the undersigned residents of Canada, call upon the Government of Canada to leave the Tax Free Savings Account (TFSA) limit at $10,000 to ensure fairness for all working Canadians.
The newly elected Liberal federal government has discussed that the limit of Tax Free Savings Accounts (TFSAs) will be reduced from the current $10,000 to the previous ceiling of $5,500. Introduced in 2009, the TFSA permits the 80% of Canadians who do not work in government to save their own money for a decent retirement.
- Half of Canadians have a TFSA, and of the TFSA holders who have topped up their contributions to the maximum limit, fully 60% earn less than $60,000 per year.
- TFSAs are an excellent tool for seniors who can no longer contribute to a Registered Retirement Savings Plan after the age of 71.
- A recent Angus Reid public opinion poll showed that 67% of Canadians are in favour of the TFSA limit remaining at $10,000.
- TFSAs have already been taxed, and the annual income generated from the account will be tax-free.
- Canadians currently pay about 43% of their income in taxes – more than they spend on food, shelter and clothing combined. And many of those tax dollars go to provide very generous pensions to government workers – pensions that the average Canadian cannot afford for themselves but to which they contribute tens of billions of their tax dollars.
- Contributing the maximum of $10,000 per year to a TFSA would still not compare to the very generous public sector defined-benefit pension plans, which are indexed to inflation, and which include additional post-retirement extended health and dental benefits.
- Although opponents of leaving the TFSA limit at $10,000 often say they do not believe Canadians have that kind of money “lying around” to put into a TFSA, the same group nevertheless believes that Canadians do have additional funds to put into increased mandatory levies for CPP, a possible Ontario Retirement Pension Plan (ORPP), EI, new carbon taxes, etc. It is hypocritical to say that Canadians lack the funds for a TFSA, but do have funds to put into these forced government levies.
I want the federal Liberal government to leave the Tax Free Savings Account (TFSA) at the current $10,000 per year contribution limit.