Reply #6: Here's another important feature... [View All]

[Bragi]

Every previous tax-reduced savings plan in Canada has been designed to encourage savings for a specific, socially-beneficial purpose -- e.g. retirement savings, education funds, first-time home buyers, etc.

Harper's new tax-reduced saving fund, however, is the first ever that doesn't encourage people to save for anything in particular. You can now start a tax-reduced savings plan to help buy that Hummer for someone special, or that Cartier watch you've always wanted.

This is perfectly consistent with Harper's neocon, free-market philosophy, but it is way out of step with how we have traditionally used tax policy to promote savings and/or investment for beneficial social goals.

And I agree with the coment that what will happen is that the necons, if they stay in power, will continually up the amount allowed to be invested in these funds, and it will end up being yet another way for the well-off to shelter investment income from taxes they'd otherwise have to pay.

- B