Wednesday, 25 February 2015

TFSA’s vs. THE RICH AND POOR


It seems that everyone in the media is flapping their arms about a Broadbent Institute report that says the proposed doubling of TFSA [Tax Free Savings Accounts] is a terrible thing.  Exactly what one would expect to hear from a socialist think-tank.
From a biblical perspective Jesus talked more about money than any other subject.  Here are a few of the things He had to say:
On being extravagant: “Leave her alone,” said Jesus. “Why are you bothering her? She has done a beautiful thing to me.  The poor you will always have with you, and you can help them any time you want. But you will not always have me.”  Mark 14:6-8
On our attitude to the poor: “Leave her alone,” said Jesus. “Why are you bothering her? She has done a beautiful thing to me.  The poor you will always have with you, and you can help them any time you want. But you will not always have me.”  Mark 14:6-8
On making wise investments (at the very least): “Well then, you should have put my money on deposit with the bankers, so that when I returned I would have received it back with interest.” Matthew 25:27.  The greater point in this parable was that you don’t get rich without taking some risks.
As I read many of the readers’ comments it is apparent that many have no idea of how the world actually turns, how taxes get paid, or how and why monies (wealth) needs to be invested.

Here are my Top-10 Thoughts on the comments I have been reading:
1. We need the very wealthy.  Typically, these are the masters of invention and innovation and builders of business.  These are the individuals whose businesses provide employment to a large portion (I did not say majority) of the masses.  Their companies produce profits, which provide dividends for your RRSP’s and, yes, even your Canada Pension Plan.  They are the big philanthropists - imagine where many of our benevolent institutions would be without them.

2. The wealthy for the most part are entitled to be wealthy.  If they make a better widget and sell a whole lot more of them so why should they be penalized?  They don’t owe me (or the Government) anything extra for being smart business people or shrewd investors.

3. The wealthy, the smart ones anyway, invest their wealth in other companies.  An individual who simply keeps his millions or billions in a chequing account somewhere are not going to stay wealthy for very long.  I say, follow their example.  Invest.  See Matthew 25.

4. Some of the commentators noted that the majority cannot afford to contribute monies into a TFSA.  The median family income in Ontario (according to Stats Canada) is $74,890. We make it our choice to max out our TFSA's. Which 'majority' are they talking about?

5. We choose to live a modest lifestyle now so that are able to save for a comfortable retirement. It is choice, rather than ability, that dictates who will save and how much.  Read God’s advice in the Book of Proverbs.

6. The world (or the Government) doesn’t owe me anything other than the ability to work hard and be productive.  I expect exactly the same of the Government as they invest my taxes.

7. I am disheartened by the number of independent contractors and businesses who will offer us a ‘deal for cash’.  It ends up being a double whammy for the Government; they lose the HST I should have paid and the income tax the contractor should have paid.  I can only imagine how much our taxes might be reduced if everyone paid their fair share and the Government(s) got rid of waste and increased their productivity simultaneously.  All the talk about lost Government revenues by doubling TFSA allowances is but a pin-prick by comparison.

8. TFSA’s aren’t limited to meagre bank-rate interest.  In the past year we have seen annualized growth of 7% and this in a relatively low-risk investment.

9. In the same manner that it pays to save – it pays to tithe (give to the work of building up God’s Kingdom).  I save a full third of my taxes on the donated amount, it makes me feel good to see my monies bring a smile to a child’s face and then, the icing on the cake, God says He will bless me for doing so!

10. Finally, to quote Jesus on making wise investments, “The kingdom of heaven is like treasure hidden in a field. When a man found it, he hid it again, and then in his joy went and sold all he had and bought that field. Again, the kingdom of heaven is like a merchant looking for fine pearls.  When he found one of great value, he went away and sold everything he had and bought it.”