MP BEN LOBB CALLS ON LIBERAL GOVERNMENT TO SAVE THE TAX-FREE SAVINGS ACCOUNT
OTTAWA, ON - Today, MP Ben Lobb called upon the Liberal Government to leave the Tax Free Savings Account (TFSA) limit at $10,000 annually to ensure fairness for seniors and working Canadians.
“In 2009, our Conservative Government introduced the TFSA as an effective way to save money - tax free,” said Lobb. “Research shows that almost half of TFSA maximizers are seniors, so why is the Liberal Government so eager to decrease the contribution limit?”
On Monday, Federal Finance Minister Bill Morneau confirmed that the contribution limit on the TFSA will drop back to $5,500 from $10,000 effective January 1, 2016. MP Ben Lobb is sponsoring a petition both online and in his constituency offices in an effort to stop the change in contribution limit.
The Department of Finance’s research shows that people of all ages and income levels max out their TFSA contribution limits – in fact the vast majority are low to middle income earners, with a large proportion being seniors. Currently, 71 per cent of TFSA maximizers are over the age of 55 and 59.4 per cent of max contributors make less than $60,000. Support for the TFSA is consistent across age groups, income levels and regions of Canada.
The TFSA program was introduced in 2009 by the Conservative Government. It is a way for individuals who are 18 and older with a valid social insurance number to set money aside tax-free throughout their lifetime. TFSAs are an excellent retirement savings tool for seniors who can no longer take advantage of Registered Retirement Savings Plans (RRSPs), and also for young Canadians who need a tax-effective means of saving for their future.