Conservative Leader Pierre Poilievre has promised to raise the contribution limit on tax-free savings accounts (TFSA) by $5,000 — as long as it’s invested in Canadian companies. Andrew Chang breaks down what makes the plan more complicated than it sounds, and who would actually benefit from it.
Alternative YouTube link: https://www.youtube.com/watch?v=FL1X7mZkuU0
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TL;DW ish:
Wow. Surprisingly this would only benefit some of the richer, and less risk averse, of Canadians who:
- Invest in TFSAs in the first place, which is a bit less than half of the population (video says ~18m)
- Already max out their contributions, around 8% of the already less than half of the population do so
- Are willing to put these new contributions into the Canadian market, which on a 10yr average gets you around 8.5% return Vs S&P at around 12.5% for the same period
- Either don’t understand or don’t care that these investments by no means actually directly injects money into the Canadian companies that they’re buying stocks for, and mostly it’d be other investors and wealth management firms who benefit directly
- And are willing to invest in whatever smöl pp and his goon define as a “Canadian Company”. They haven’t defined what they mean yet, and it’s so nebulous it could mean almost anything
So just like they’d cut taxes on the rich, this is clearly a way to enrich themselves and their oligarch pals. Ça me suprend…🙄🖕
