A ticking tax time bomb..
That's ticking backwards?
Huh, I just noticed that the proposed changes to the TFSA has changed one thing that nobody is harping on: They've removed the indexing to inflation. That means that over time, the actual value (in today's dollars) that you can put into the TFSA will decrease over time rather than stay constant as it does with the original indexing method. Interesting that everybody is focusing on the doubling of the contribution when in 35 year's time, the value that you can sock away will be half of what you can put away now with an inflation rate of 2%. At 5% it'll only take 14 years to halve your effective contribution room.
Huh, I just noticed that the proposed changes to the TFSA has changed one thing that nobody is harping on: They've removed the indexing to inflation. That means that over time, the actual value (in today's dollars) that you can put into the TFSA will decrease over time rather than stay constant as it does with the original indexing method. Interesting that everybody is focusing on the doubling of the contribution when in 35 year's time, the value that you can sock away will be half of what you can put away now with an inflation rate of 2%. At 5% it'll only take 14 years to halve your effective contribution room.
Comments
Post a Comment