Today, Prime Minister Stephen Harper announced that a re-elected Conservative Government will strengthen families’ financial security by doubling the amount that Canadians can contribute to their Tax-Free Savings Accounts each year.
“Since taking office in 2006, our Government has consistently lowered taxes on Canadian families so they can keep more of their hard-earned money and have the financial security to raise their children and plan for a stable future,” Harper said. “Thanks to our low-tax plan, the average Canadian family is already paying $3,000 less in taxes each and every year.”
As part of his low-tax plan, Stephen Harper’s Government created the Tax-Free Savings Account in 2008 to help Canadians save and invest up to $5,000 per year to spend — tax-free — on their future priorities. This measure has been a tremendous success. Over 4.7 million Canadians are now taking advantage of the Tax-Free Savings Account to save for the future and enhance their financial security and stability.
Building on this strong record of lowering taxes on families, a re-elected Stephen Harper Government will double the annual contribution limit to $10,000 as soon as the budget is balanced within the next term in office.
Prime Minister Harper noted that doubling the annual limit Canadians can contribute to their Tax-Free Savings Account will make it easier to save and plan for the future, and will reduce their taxes over time. “The Tax-Free Savings Account lets Canadians keep more of their own hard-earned money to invest in their own priorities,” the Prime Minister said. “Doubling the annual contribution limit will help families save to purchase a car, renovate their home, start a small business or retire with greater financial security and stability.”
In contrast to Stephen Harper’s low-tax plan for families, Michael Ignatieff’s high-tax agenda would threaten the financial security of Canadian families and make it difficult for them to save and plan for the future.
Prime Minister Harper observed that the Ignatieff-led Coalition with the NDP and Bloc Québécois has the wrong priorities, with their plan to raise taxes on Canadian families. “The choice is clear,” Mr. Harper said. “Canadians can choose between our low-tax plan for families and Mr. Ignatieff’s high-tax agenda that will set you and your family back.”
- Since coming to office in 2006, Stephen Harper’s Government has been implementing a low-tax plan to help Canadians save and invest for the future.
- Our strong record of lowering taxes has allowed families to keep more of their hard-earned money and have the financial security to raise their children and plan for a stable retirement.
- Today, thanks to Stephen Harper’s low-tax plan, the average Canadian family is paying $3,000 less in taxes each and every year.
- One of our Government’s most important low-tax measures is the creation of the Tax-Free Savings Account (TFSA) in 2008.
- Canadian families need to save for many different purposes over their lifetimes. Reducing taxes on savings helps to make it easier and more rewarding for Canadian families to save for investment in their own priorities. That’s exactly what the TFSA does.
- The TFSA is a flexible savings vehicle that allows Canadians to save and invest up to $5,000 per year.
- Withdrawals from TFSAs are non-taxable. Canadian families can withdraw their savings when they need them — to purchase a car, renovate their home, start a small business or retire in greater financial security.
- Investment income earned in your TFSA, including capital gains, is not taxed, even when withdrawn.
- Not every Canadian is able to save up to $5,000 each and every year. Those who do not save up to the limit each year are able to carry forward their unused contribution room to future years. Accordingly, the TFSA could also be a vehicle for any lump-sum amounts that Canadians might receive.
- In recognition of the fact that families make their saving decisions and plan for their financial security on a joint basis, individuals can provide funds to their spouse or common-law partner to invest in their TFSA, up to their spouse’s or common-law partner’s available room.
- The TFSA is especially beneficial to Canadian seniors.
- · It helps them meet their ongoing savings needs, even after they reach age 71 and must convert their Registered Retirement Savings Plan into a Registered Retirement Income Fund.
- Withdrawals from the TFSA do not affect a senior’s eligibility for federal income-tested benefits and credits such as Old Age Security, the Guaranteed Income Supplement and the GST Tax Credit.
- The TFSA has been a tremendous success since coming into place in January 2009.
- Over 4.7 million Canadians are now taking advantage of the TFSA to save for the future.
- The fair market value of all TFSAs held by Canadians is $17.9 billion.
- Hard-working Canadians are concerned about their savings — having enough set aside to go on their dream vacation, start a small business or have a nest-egg for their retirement.
- A re-elected Stephen Harper Government will — as soon as the budget is balanced within the next term of office — double to $10,000 the amount that Canadians can contribute to TFSAs each year.
- This low-tax measure will provide Canadian families with more flexibility to save and plan for the future and lower their taxes over time.
- The projected cost of doubling the TFSA limit will be modest in the fiscal planning period. It is estimated to cost up to $30 million in the first year.
- Stephen Harper’s low-tax plan has helped millions of Canadians save for the future and enhance their financial security.
- But we need to continue to help families whose budgets are stretched. We need to lower taxes for families. We need to ensure that our country remains a place where anyone — no matter who they are or where they’re from — can achieve their dreams and retire with financial security.
- Doubling the TFSA limit will lower taxes on Canadians and ensure that they can keep more of their hard-earned money to spend on their needs and priorities.
- In contrast to Stephen Harper’s low-tax plan for families, Michael Ignatieff and his Coalition partners, the NDP and the Bloc Québécois, have a high-tax agenda that will threaten the financial security of Canadian families.
- The Ignatieff-led Coalition’s agenda would raise taxes on Canadians trying to save for the future.
- Higher taxes and higher prices. Michael Ignatieff’s high-tax agenda will stall our recovery, kill jobs and set families back.