[6/6] ...among others. This would be a better way to help Canadian firms raise the capital they need and would be more efficient than the proposed TFSA limit increase.

[5/6] If policy makers want to attract investment capital to Canada (a good idea IMO), then they should enact policy to encourage investors from all over the world (including Canada) to invest here. This includes reducing corporate tax rates, streamlining regulations affecting big capital projects,

[4/6] To the extent that TFSA contributions come from funds "repurposed" from elsewhere, they *will not* represent new capital for firms to use/invest. Second, giving preferential treatment to assets invested in different countries (in this case CAD) leads to an inefficient allocation of capital.

[3/6] ...to the Canadian asset preference/requirement (i.e. sell a Canadian fund in your taxable account and rebuy the same fund in a TFSA). My own work suggests 25-45% of new TFSA balances are financed by reducing savings in taxable financial assets (onlinelibrary.wiley.com/doi/full/10....).

[2/6] First, there is the issue of how the new TFSA contributions are financed. TFSA contributions financed by transferring assets from taxable or tax-deferred (RRSP) accounts or contributions that would have been saved in another form anyway *do not* represent new savings. This also applies...