TY  - JOUR
TI  - Family‐level responses to the introduction of Tax‐Free Savings Accounts
AU  - Lavecchia, Adam M.
PY  - 2023
PB  - Wiley
LA  - eng
AB  - AbstractThis paper presents evidence on the effect of the introduction of Canadian Tax‐Free Savings Accounts (TFSAs) on the savings of families with children. Contributions to TFSAs are not tax‐deductible but capital income earned in the account accrues tax‐free and withdrawals are not taxed. Using a difference‐in‐differences instrumental variables research design that exploits the sharp change in a family's cumulative TFSA contribution room that arises when a child turns 18 years old, I find that a $1 increase in family‐level TFSA balances lowers taxable financial asset holdings by approximately $0.25 to $0.45 and has no statistically significant effect on holdings in traditional tax‐deferred accounts. My results suggest that having an additional adult family member eligible to open a TFSA increases the TFSA contributions and account balances of both adult children and their parents.
UR  - https://doi.org/10.1111/caje.12690
DO  - 10.1111/caje.12690
T2  - The Canadian journal of economics: the journal of the Canadian Economics Association = Revue canadienne d'économique
VL  - 57
IS  - 1
SN  - 1540-5982
SN  - 0008-4085
SP  - 108-139
UR  - https://www.pollux-fid.de/r/cr-10.1111/caje.12690
H1  - Pollux (Fachinformationsdienst Politikwissenschaft)
ER  -