Let the grandkids solve the TFSA problem.

If you’re someone who has your money somewhere other than Vancouver real estate you’re probably familiar with the TFSA.  And you probably know the limit has just been doubled to $10k a year.

Critics say this move only helps the wealthy and creates a future tax problem.

Joe Oliver says we should leave that problem for the PMs grand-daughter to solve.

On Tuesday’s The Exchange with Amanda Lang on CBC News Network, the finance minister told Lang that criticism of his recently unveiled budget is unfounded, arguing that the benefits for Canadians today more than offset any future revenue problems associated with it that may or may not ever come to pass.

The doubling of the TFSA limit to $10,000 per taxpayer every year was a core plank of Oliver’s balanced budget. But critics including the opposition parties and private sector economists have said the populist move will create a revenue problem for governments down the line, as more and more investments get protected from taxation.

So what do you think about the TFSA limit increase? A tool only for the wealthy or a bit of extra help for savers?

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Jade
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Jade

I’ve been browsing online more than 2 hours money today, yet I never
found any interesting article like yours. It’s pretty worth enough
for me. In my view, if all webmasters and bloggers made good content as
you did, the net will be a lot more useful
than ever before.

tedeastside
Member
tedeastside
trackback

[…] -Home ownership still favourite investment -Calgary new condo sales plunge 61% -Bundle and save on realtor fees -Blame your mom and dad for high prices -Mother of Mayors girlfriend arrested in China -Scary high ratio mortgages in Canada – […]

southseacompany
Member
southseacompany

“Kevin O’Leary Says Don’t Buy… Rent, Rent, Rent”, Steven and Chris Show, CBC.

https://www.youtube.com/watch?v=HPCczrvnJDk&spfreload=10

From 2013, but I just saw it now.

space889
Guest
space889

20 Delicious receipts – I bet everyone here just want to rush to try them.

http://time.com/3830167/eating-bugs-insects-recipes/

history
Guest
history

cant see Mayor Wanting resigning, this incident will only elevate him. No such thing as bad publicity! Everyone knows that Vancouver the playground of the embezzlers, and political favoritism economy. Shiet, anyone making over $50 grand in a non trade job is easily replaced by a person taking a salary half that sum.

Bo Xilai
Member
Bo Xilai

Fellow VCI followers…

Keep your eyes peeled for the 26 “China’s Top 100 Fugitives” who are in Canada…

Next time you see a Bentley with a “N” decal, you might see one of these crooks…

http://www.ccdi.gov.cn/xwtt/201504/t20150422_55183.html

Bo Xilai
Member
Bo Xilai

I’m surprised the Vancouver Sun has published this story about Wanting Qu corrupt mom…

http://www.vancouversun.com/news/metro/Wanting+mother+reportedly+arrested+China+corruption+charges/10999078/story.html

Yunak
Guest
Yunak

It will be interesting to see if Mayor Wanting is going to resign due to “personal reasons” and stand behind his Lady or will let her down the drain to pursue “spotless” political career. Shit has happened and decision must be made, choice is slim…

vangrl
Member
vangrl

there are 3 times as many people that make 30-35 grand then there are 100-250 grand?

I’m think there must be a lot of construction, trades and restaurant workers getting paid with a lot of cash…

fookem
Guest
fookem

Major offshore Mainland buying in West Van today.

they bought 6 homes today. 6 more lost from the housing stock. To be left empty while tax-paying families cram into tiny apartments, or at best rented out by owners who are as likely to pay tax on the income as pigs flying.

w
Guest
w

Mayor Gregor Robertson has issued a public statement about his girl friend’s mother.

https://www.youtube.com/watch?v=pFDfZGr631k

patriotz
Member

@54:

http://blog.transparency.org/2015/02/23/it-has-become-more-difficult-to-be-corrupt-in-china/

Xi Jinping is putting himself at the centre of the party and minimising his dependence on other people. It’s a transformation from collectivist one-party rule to a one-person authoritarian system.

Sounds kind of like the Cultural Revolution, which was really about getting rid of anyone who posed a challenge to Mao.

Best place on meth
Member
Best place on meth

26 of China’s 100 most wanted fugitives are in Canada (presumably in Vancouver).

That’s only the top 100, there are thousands upon thousands of these dirtbags here laundering their money in real estate.

“However, international law experts warned of complicated legal procedures due to a lack of extradition treaties between China and the nations where the fugitives are hiding.”

We need an extradition treaty immediately.

http://www.businessinsider.com/40-of-chinas-100-most-wanted-fugitives-live-in-the-us-2015-4

paulb
Member

New Listings 211
Price Changes 62
Sold Listings 260
TI:13451

http://www.paulboenisch.com

patriotz
Member

@53: “I don’t feel it benefits the wealthy the most, the truly really wealthy probably don’t even know what a TFSA is.”

Take a look at this table:

http://www.cra-arc.gc.ca/gncy/stts/tfsa-celi/2012/tbl04-eng.pdf

This is the income distribution of those who have TFSA’s. Note it does not distinguish by how much is in the TSFA. Could be $100 or $35K.

100K-250K account for 268,750 TFSA holders. There are 413,270 people with that much taxable income.

250K+ account for 145,800 TFSA holders. There are 212,010 people with that much taxable income.

On the other hand, 30-35K account for 584,380 TFSA holders, but there are 1,486,360 of them.

http://www.cra-arc.gc.ca/gncy/stts/gb11/pst/fnl/pdf/tbl2-eng.pdf

It’s obvious that the better off are taking disproportionate advantage of the TFSA, and that’s even before looking at how much money they put in, or the amount of tax advantage, which of course rises with income.

VanRant
Member
VanRant

@49
Wonder how much tax was collected from these 30,000 Chinese millionaires?
“many of these investors have only tenuous ties to the country and pay “significantly lower taxes over a lifetime” than other immigrants.” From G&M.
Should go after their world income.

mayor robbery Robertson
Guest
mayor robbery Robertson

Mayor Is always Wanting Qu eat Chinese food

mayor robbery Robertson
Guest
mayor robbery Robertson

That greasy mayo of ours damn near ran over a nice old lady on seawall last week he was in a hurry to go to Monk Mcqeens. I let the air out of his bike tires lol

Slagathor
Guest
Slagathor

…The mother of Wanting Qu, the pop star girlfriend of Vancouver Mayor Gregor Robertson, has been arrested for corruption in China, according to Chinese state media….

It just keep getting better. Poor mayor Wanting! LOL.

vangrl
Member
vangrl

Even those that can’t contribute the max now may benefit in the future.

Great raise
unexpected Bonuses
An inheritance
Work severance pay, assuming you got another job
Job buy-out, assuming you got another job
Lotto!
liquidating a money losing rental pad in Surrey
Sell your $30,000 Suv and join Evo, and save gas money

Seriously, people come into money in unexpected ways all the time.

Think of all that unused contribution room you’d have!

I don’t feel it benefits the wealthy the most, the truly really wealthy probably don’t even know what a TFSA is.

Bear Vancouverite
Guest
Bear Vancouverite
@elvince #28 and @space “If you make 60k$, you contribute: 10.8k$ in RRSP (taxable = 49.2k$) 14.8k$ to taxes (let’s suppose 30% average rate, net income = 34.4k$) 10k$ to TSFA Then you have a nice sum of 24.4k$” I don’t think that this is necessarily only good for “wealthy” people. The upper middle income families who don’t overstretch themselves can benefit from this to some degree (say $7.5k each income earner). Let’s take someone with a slightly above average family income of $85k If one spouse is making $50k and another is making $35k (not unusual for middle class families) then the calculation becomes: Spouse A: $9k RRSP (taxable = $41k) $8.5k to taxes (I used the CRA calculator to do the tax calculation) $7k to TFSA ————- $25.5k Spouse B: $6.3k RRSP (taxable=28.7k) $5k taxes $7k to TFSA… Read more »
Yunak
Guest
Yunak

@45

Vancouver can’t miss to not get related on the global scene to the various Chinese shitdoings. From money laundering, criminals sheltering, tax evasion, system circumventing to First-mother-in-law arresting, nice…

VanRant
Member
VanRant

The China Syndrome: Is China Headed For A Financial Meltdown?
“All I can say is I would not want to be standing next to the fan when the you-know-what hits it.”
http://www.forbes.com/sites/mikepatton/2015/04/23/the-china-syndrome-is-china-headed-for-a-financial-meltdown/2/

Yunak
Guest
Yunak

@40

Over its final decade or so, the Immigrant Investor Program drew more than 30,000 Chinese millionaires to British Columbia.

They should be chased with shitty sticks.