Income splitting misinformation campaign: volume 10
Income splitting misinformation campaign: volume 10
This article is more than 6 years old

Income splitting misinformation campaign: volume 10

After the Harper government’s annus horribilis, a former Conservative cabinet minister is musing about how his former colleagues could use the upcoming federal budget to “dangle the carrot of income splitting” for families. “The net effect would be lower taxes for almost everyone,” writes Monte Solberg in the Toronto Sun. That’s just plain wrong. Harper’s […]

December 30, 2013

After the Harper government’s annus horribilis, a former Conservative cabinet minister is musing about how his former colleagues could use the upcoming federal budget to “dangle the carrot of income splitting” for families.

“The net effect would be lower taxes for almost everyone,” writes Monte Solberg in the Toronto Sun.

That’s just plain wrong.

Harper’s plan, promised to be enacted when the federal budget is balanced, means parents with children under 18 would be allowed to split up to $50,000 of income with their partner. Some additional income could be declared for tax purposes by the spouse in the lower tax bracket, reducing the overall taxes paid by the couple.

Solberg and his former colleagues in the Harper government are trying to spin this as a panacea for everyday families, but the largest share would go to high-income families where one partner is in the top tax bracket and the other has no earned income.

Even worse, the Conservative approach to income splitting would provide no benefit at all to single-parent families – even though more than a quarter (28%) of all children live in families headed by a single parent. The same holds true for families where both partners work and have incomes below $43,561.

In other words, income-splitting provides zero relief to families with children who are most in need, including those who live in poverty. Rather, what it does is transfer more of the tax burden onto single-parent families and lower- and middle-income families. It promises to exacerbate – not reduce – existing income and gender inequality.

It will also strip the public coffers of needed revenue to invest in critical social programs, hamstringing future federal governments. The Conservatives don’t like to talk about that part of the plan.

Photo: joehowell. Used under a Creative Commons BY 2.0 licence.

 

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2013 plant closure roundup
2013 plant closure roundup

2013 plant closure roundup

Canada’s jobs record in 2013 wasn’t pretty. Between November 2012 and November 2013, all of the net new jobs created in Canada were in the lowest paid and most insecure occupational group: sales and service jobs. There were just 172,400 new jobs created over this period. But sales and service employment rose by 191,700. These […]

December 23, 2013

Canada’s jobs record in 2013 wasn’t pretty.

Between November 2012 and November 2013, all of the net new jobs created in Canada were in the lowest paid and most insecure occupational group: sales and service jobs.

There were just 172,400 new jobs created over this period. But sales and service employment rose by 191,700. These jobs pay an average of just $16.50 per hour, giving the lie to the Harper government’s claim that our economy is doing just…