Expanding the tax-free savings account is expensive and will serve an increasingly narrow population of Canadians over time, two Brock University professors recently told a House of Commons Standing Committee on Finance.

Professors Maureen Donnelly and Allister Young made the comments last week to the committee, which is examining proposed changes to the tax-free savings account (TSFA) that would see annual contributions limit increase to $10,000 from $5,500.

The two tax experts, both associate professors at the Goodman School of Business, were called on to participate in the panel based on their extensive research on TFSAs.

Young, who spoke on the pair’s behalf, cited their latest research, published in the Canadian Tax Journal, which examines the British experience with tax measures similar to the Canadian TFSA. This data was then used to predict how Canadians would make use of the TFSA and at what cost to the Canadian tax system.