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