Canadians Tax-Free Savings Accounts Working : Obama Progressives Say No!

The author encourages our government to adopt the Canadian model so Americans can save money  like millions of Canadians. But everyone has to know Mr Obama and the progressive socialist democrats have no intention of allowing the general public become prosperous. Prosperity is death to socialism and the democrats ideology.

Canadians Saving Billions with Tax-Free Accounts
Source: Chris Edwards, "TFSAs Spur Canada Savings Revolution," Cato Institute, October 21, 2014.

October 27, 2014

In 2009, Canada introduced Tax-Free Savings Accounts (TFSAs), and the results have been overwhelming:

• In June 2009, 3.8 million Canadians had a TFSA; today, 13 million Canadians have a TFSA.
• And the amount of assets in the accounts has seen comparable growth. There were $13.4 billion in TFSA funds in 2009, $73.9 billion in 2012 and $108.9 billion in December 2013.
• As of June 2014, there are $131.5 billion in TFSA assets.

Of 27.7 million adult Canadians, 47 percent have a TFSA, says Chris Edwards of the Cato Institute. Edwards explains how the accounts work and why they are so popular:

• Canadians can deposit a maximum of $5,500 into their accounts each year, after taxes. However, those annual limits accumulate if an individual does not max out his contribution; if someone only deposits $2,000 in his account this year, he can deposit $9,000 next year.
• Earnings are tax-free, as are withdrawals, and withdrawals can be made at any time, for any reason.
• Everyone has access to the accounts; there are no income limits.
• The accounts can be opened at any bank branch or online.

Edwards encourages the United States to adopt a TFSA model. The accounts are simple and easy to understand and, if Canada's experience is any example, would greatly increase savings rates in the United States.