Family-level responses to the introduction of Tax-Free Savings Accounts

IF 1.3 4区 经济学 Q3 ECONOMICS Canadian Journal of Economics-Revue Canadienne D Economique Pub Date : 2023-10-24 DOI:10.1111/caje.12690
Adam M. Lavecchia
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Abstract

This 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.

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家庭对引入免税储蓄账户的反应
本文提供证据,说明加拿大免税储蓄账户(TFSA)的推出对有子女家庭储蓄的影响。向 TFSA 账户的缴款不能免税,但账户中赚取的资本收入免税,提取时也不征税。我采用差分工具变量研究设计,利用孩子年满 18 岁时家庭 TFSA 累计缴款空间的急剧变化,发现家庭 TFSA 余额每增加 1 美元,应纳税金融资产持有量就会减少约 0.25 美元至 0.45 美元,而对传统延税账户的持有量没有显著的统计影响。我的研究结果表明,多一个有资格开设 TFSA 的成年家庭成员会增加成年子女及其父母的 TFSA 缴款和账户余额。
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来源期刊
CiteScore
2.20
自引率
6.20%
发文量
86
期刊介绍: The Canadian Journal of Economics (CJE) is the journal of the Canadian Economics Association (CEA) and is the primary academic economics journal based in Canada. The editors seek to maintain and enhance the position of the CJE as a major, internationally recognized journal and are very receptive to high-quality papers on any economics topic from any source. In addition, the editors recognize the Journal"s role as an important outlet for high-quality empirical papers about the Canadian economy and about Canadian policy issues.
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