Mintz on Tax-Free Savings Accounts
As Andrew, Marc, Toby and I pointed-out at the time, despite the low up-front cost of Tax-Free Savings Accounts, they will become exponentially more expensive over time. To obnoxiously quote myself, “this measure could burn a significant hole in future government revenues.”
It is worth noting that Jack Mintz, a huge fan of Tax-Free Savings Accounts, suggests essentially the same thing in the latest issue of Canadian Business Magazine:
Flaherty was able to bring in a substantial tax reform at little fiscal cost to the government for the next few years. The real cost will be down the road, when many seniors will have untaxed investment income sheltered in the TFSA. Of course, someone else will be in power by then, and Flahertyâ€™s new account will make life a lot tougher for tax-and-spend governments in the future.
The difference between Mintz and us is his apparent believe that depriving the public sector of revenue isÂ good.