In terms of believing that our government has created TFSA accounts, it makes sense for them on many levels. First of all, it will give individuals a real good reason to save for a rainy day. These savings can help prevent or at least moderate an economic shock like the US is going thru. The amount of money is reasonable to really have some personal wealth effect but will not affect most of the governments income which is more based on Income tax from T4 slips and corp taxes which do not get TFSA priviliges.

The government may not have realized how high an ROI could be when playing the stock markets but how many canadians really play this game and play it well enough to dent those governement revenues?

The wealth effect that this may create down the road is also positive for the government as people will feel more free to spend money and that will help businesses and the taxes from consumer comsumption will help offset the monies lost in TFSA accounts.

Glorieux