Helping Canadians Save for the Future

February 27, 2008

Canadians work hard. They deserve the opportunity to save more of what they earn.

Canadians who work hard to save money for the future should not be penalized for setting aside money for a rainy day. Yet, for years, Canadians have been forced to pay taxes on both the income they earn directly, as well as any interest earned on the money they save.

The Conservative Government wants to make it easier for Canadians to plan for the future with confidence. That is why Budget 2008 is allowing more Canadians to keep more of what they save through the creation of Tax Free Savings Accounts. Now all Canadians will have the opportunity to save money in these accounts and all of the investment income they earn in these accounts will be tax free.

Every Canadian resident aged 18 or older will be able to contribute up to $5,000 per year to a personal Tax-Free Savings Account, with unused contributions being carried over for use in future years. Canadians will be able to withdraw these savings, tax-free, at any time, without penalizing themselves or limiting how much more they can contribute in the future.

Through the Tax-Free Savings Account Canadians now have one more tool they can use to save for their retirement. However, these accounts are for more than just retirement savings, as any Canadian will be able to access these savings at any point of their lives for whatever priority they choose.

Canadians are right to expect that their Governments will manage their tax dollars in a prudent and responsible manner. That is why, for the third year in a row, the Conservative Government has introduced a balanced budget that is both focused and prudent. With Tax-Free Savings Account it is now easier than ever for Canadians to make focused and prudent financial decisions of their own.

While the Stéphane Dion Liberals continues to promise spending commitment after spending commitment that would plunge Canada at least $62.5 billion in new debt, Canadian families are holding themselves to a higher standard of behaviour in their own financial decisions. Today, thanks to strong, responsible leadership from the Conservative Government, the government itself is getting out of people’s way and making it easier than ever for Canadians to make smart decisions and save for the future.