Tax-free savings accounts become available to Canadians January 1, 2009. These new accounts will allow each Canadian to deposit $5000 per year into a savings account at their financial institution. The interest on that deposit will be tax free, and can be left in the account or withdrawn. It’s a positive step by the Conservative government: encouraging saving is an important economic policy. More savings mean pools of investment capital, which means more innovation and more economic growth.
All economists agree on the principle that ‘we will get less of whatever we tax, and more of whatever we subsidize’. This move to encourage savings by making them tax-free is a small step, but it is an important one and a concept that the CHP has advocated for more than a decade.
The CHP’s utilization of this same concept would allow Canada to benefit to a much larger degree. The CHP’s plan would allow each Canadian’s contributions to the Canada Pension Plan, and Employment and Health Insurance, to be deposited in an account with the Government in their own name. This would encourage Canadians to provide for their own health, retirement and employment accounts by making the accounts—and the income they earn—tax-free. Just think of the positive long reaching benefits to Canadians. Savings accounts that are tax-free and the assurance that your money will be there when it’s needed most. It’s in your name!
Individual tax free savings accounts did not originate with the CHP; it was first proposed in 1980 by Canada’s Christian statesman, Dr. Robert Thompson. After serving as the leader of the federal Social Credit Party, Dr. Thompson wrote a 134-page book with Cleon Skousen: Canada Can Now Adopt a Model Constitution. These types of savings accounts were presented in that volume.
The CHP has presented several other practical innovations to the federal government, such as:
- a proposal for infrastructure renewal that would solve Canada’s “credit crunch” without raising taxes or adding to the national debt;
- a plan to reform the controversial political party subsidies that recently caused an uproar on Parliament Hill. The CHP plan would give taxpayers control of which party gets their tax dollars;
You can learn about these and many more innovative CHP policies by exploring chp.ca; or by phoning 1-888-VOTE CHP (1-888-868-3247) to request information.