Wednesday, February 27, 2008

What the New Tax Free Savings Account achieves

The new tax free savings account must have conservatives drooling. It allows for the rich to sock away money at the expense of those who live month to month. Other types of savings such as RRSP's, RESP's etc. allow you to save for a specific reason. This one doesn't, in fact there are no strings. Put away cash and use it whenever you want and avoid paying taxes.

The only thing this new savings account will achieve is to undermine our progressive income tax system where those making the most pay more taxes.

Now the the rich can hide excess cash interest free in the ideologically driven idea of a tax free savings account. They may have finally hit the holy grail of conservatism and that is to allow the rich to pay less tax. Recommend this Post