Angella, you said that instead of the TFSA ceiling being raised, we should double the CPP. My argument to that would be that you don't use CPP if you're saving for your wedding. You don't use CPP if you're saving up to travel. You don't use CPP if you're putting money aside for your kid's education, or if you think you're going to need palliative or other care in the future. That's where I think the break is in terms of CPP.
I think the concept that TFSAs are only and solely for retirement is not well-founded. I think it's one where people utilize these vehicles for whatever purposes they want to. The difficulty with CPP—and you know this, and I know this, and it's unfortunate people don't want to talk about this—is that if you double CPP and you don't allow for other vehicles, people's after-tax dollars, or people's pay, will be going into a vehicle that, if they don't live long enough, they will never collect. In the case of a TFSA there is an inheritance ability for the kids or the spouse. That's an important aspect of TFSAs that we should also discuss when we talk about contributions and where people choose to put their money.
The other point I would make, Mr. Chair, and I'll be succinct, is that if you take a look around the world, when we increased our level to $10,000 we did not do it in a vacuum. In the United Kingdom they have an ISA, which is an investment savings account or an income savings account. Do you know what their limit is, Mr. Chair? I'll tell you what their limit is per year. In Canadian dollars it's $28,000 a year. That's the limit for the TFSA in the U.K.. They've had it in place for many years, and in fact they have a junior one. Clearly in their country they view it as a reasonable and meaningful way for people to save their money. It's a good program. We thought a lot of it. We increased the amount as they increased the amount. I think that was a great legacy of Jim Flaherty's.
Instead of having kids being told to put something on their credit card now, and pay it off later, I think it's worthwhile to say, “Put some money in your TFSA and delay what you want to do, and by the way, we'll give you money and it's better for you to do it than paying the interest.”
That would be my comments on the TFSA.