POLITICS

Tax-free savings accounts by the numbers

02/24/2015 03:33 EST | Updated 04/26/2015 05:59 EDT
OTTAWA - Two new studies criticize the Conservative government's 2011 promise to increase the contribution limit for tax-free savings accounts, saying this will ultimately cost billions in lost tax revenues and would primarily benefit the rich.

Here's a breakdown of TSFAs, by the numbers:

Number of people with current TFSAs: Almost 11 million

Percentage of holders in 2013 who earned less than $70,000 a year in after-tax income, according to the federal government: 75 per cent

Percentage of holders who earn less than $42,000 a year after taxes, according to the federal goverment: Almost 50 per cent

Federal tax expediture on TFSAs in 2013, according to the Broadbent Institute: $410 million

Projected annual federal tax expenditure on TFSAs in 40 to 50 years, according to the Broadbent Institute: $15.5 billion