Let Canadians withdraw $50,000 from their RRSPs/RRIFs tax-free!

Why not let Canadians tap into the cash they have tucked away in RRSPs and RRIFs … tax-free! Let’s face it - there is no faster, easier way to get the economy moving then letting individuals do what they want with their savings – today.

If you’ve lost your job, or your credit card bills are out of reach or you’re having trouble paying the rent, wouldn’t you welcome the chance to withdraw some, let’s say up to $50,000, of your RRSP savings tax-free? Many people would sleep better knowing that the bills are paid and they have a secure roof over their heads … I know I would. I also know that I’d feel a lot better about supporting the bailout packages offered to automakers, the finance sector and others to come if I could get my own assistance from the government.

You see the reduction in the income tax rate announced by Mr. Flaherty, although welcome, will have a minimal effect on our spending plans this year and next. But if we could tap into our RRSP savings without having taxes withheld, well that would be a tangible benefit. We could pay for education, vacations, cars, housing and other big ticket items which would help the economy. Or, we could pay off credit cards, loans or mortgages providing instant liquidity to the lenders. This would have a very broad-based effect on the way we get through these “bad times”.

I know some will frown on the idea. They’ll say that we are dooming our retirement. They said the same thing about running a deficit. And, in normal times, I might agree with them. But, these are not normal times. Like the industries and business that are being bailed out every day, we taxpayers need some relief. And I happen to think that this would be a good way for the government to help the “little guy”.

Having access to $50,000 of our own savings “Tax-free” will help us as individuals, it will help stimulate the economy as a whole, and it will go a long way in restoring taxpayer confidence in our elected officials.