Mr. Chair, the finance minister has been doing a superb job of answering and we do not want to wear his voice out in one evening. Therefore, I will answer the member for Blackstrap, who I thank for her representation of her constituents. She has been a tremendous asset to that part of Saskatchewan. We know that she has great support in that region. She does a great job backing up her minister. She is here tonight to help support one of the landmark pieces of our 2008 budget, the tax-free savings account, described by many, not just us, for its landmark savings opportunities for Canadians.
January 1, 2009, will bring this into effect. Canadians over the age of 18 will be permitted to deposit up to $5,000 each year. TFSA will provide greater savings incentives for low and modest income individuals. In the first five years, over three-quarters of the benefits will go to the lowest two tax brackets. That is one of the most important features to this. It provides an opportunity for all Canadians to save.
Additionally, we have ensured TFSA income and withdrawals will not affect eligibility for federal income tested benefits and credits. To see how much we can save, I encourage all Canadians, and I will repeat this website, again, to go to www.budget.gc.ca. Our finance minister has been very clear about reminding Canadians how they can save, and they can go to this website.
It is no wonder we are getting such positive reactions. The C.D. Howe Institute said, “This tax policy gem is very good news for Canadians, and [the finance minister] and his government deserve credit for a novel program”.
The Winnipeg Free Press said, “To at once encourage investment and savings is a good idea in a country like Canada where individual debt is high and investment low”.
BMO economist Doug Porter said, “The tax-free savings account is a very positive development—I think it’s a step in the right direction”.
The Canadian Chamber of Commerce as well said, “the creation of a Tax-free Savings Account will encourage savings, a measure which the Chamber has sought for many years”.
The Canadian Taxpayers Federation said, “This is an excellent policy proposal. Canada needs to reward people that save because their investments fuel economic growth and job creation”.
As well, the Canadian Federation of Independent Business said that the TFSA account was “an inspired measure.
Not to be forgotten are the comments of the hon. member of for Halton about TFSA being a good idea, “It's something I have long advicated for”.