From: Canuck57@nospam.com   
      
   On 25/07/2011 2:23 PM, Alan Bowler wrote:   
   > On 7/23/2011 12:31 PM, Canuck57 wrote:   
   >> I must admit, I like the TFSA tax haven the best. Just wish they would   
   >  > let me put more in.   
   >   
   > I use a TFSA because it's in the rules about how to play the game.   
   > I still think that it is lousy tax policy. The people that get   
   > the most out of it (myself included), already get a significant   
   > tax breaks.   
   >>   
   >> In fact, since CRA is probably watching this, and we know Ottawa greed   
   >> wants   
   >  > more money, they could let us do a RRSP to TFSA rollover like the USA.   
   >   
   > Even worse policy. The US did it because it was off-sheet borrowing   
   > and made it look like there was closer to a balanced budget   
   > in the first few years it was allowed. In reality, it traded   
   > a huge drop in future taxes for a moderate increase in the first   
   > few years of the policy. Now that most of the bigger IRA and 401k   
   > accounts have been rolled over, it just makes for an ever growing   
   > loss of future taxes.   
      
   Agreed.  But they have already raided CPP and SS.  Borrowing from the   
   future without at least the interest hit.   
      
   But so did low interest rates.  Which is where government really shot   
   revenue in the head.  Lower rates also do the following:   
      
   - less taxable income from interest and retirement funds   
   - seniors with less taxable income need more OAS   
   - sets business earnigns bar lower, generates less taxes.   
   - setting low interest rates requires inflationary money print.   
   - people buy less goods, stagnant incomes, less goods consumed.   
   - less goods consumed, less job, even less taxes.   
   - unemployed and lower earnings, less government revenue on everything.   
   - less travel, less gas taxes   
   - less imports, less duties.   
      
   In essence, low interest rates below inflation plus interest and taxes   
   is already diminishing the future tax pools as well as the present   
   incomes.  Thus the revenue problem.   
      
   Gets worse if you factor in people using more credit to live beyond   
   their means.  Even causes CHMC grief.  If people can run up their credit   
   cards to $20, 30, 50K any beyond, well, the personal debt increases the   
   chances for default.  That is, personal credit being higher causes   
   increased risks of bankruptcy.   
      
   I don't know who runs economics in Ottawa, but they are over paid and   
   brain lazy.  I saw 2008 coming in 2004.  You can't print your way out of   
   debt but you can make it worse.   
      
   I knwo why they did it, in 1980-82 the rates rose to counter the   
   inflation and rise in debt, a balance was achieved.  No such balance   
   exists today...   
      
   --   
   Obama, enslaving Americans with debt-tax slavery for a spending binge.   
   Doesn't even borrow real money, Bernanke just creates it like a   
   counterfeiter. .   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)