Income Splitting: A Bad Idea Returns

I wrote the following op-ed four years ago. While the population totals and tax thresholds have changed slightly, the analysis stands. In fact, the case for income splitting is now even weaker. Back then, it would at least have allowed low-income, single-earner households to claim two basic personal credits instead…
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Income Splitting: A Pacifier, Not A Program

Income splitting? Really? That’s the Conservatives’ big plan for helping to ease the financial burden of couples with children? I’m not surprised. After all, this is the government for whom $100/month (taxable!) for each child under six is their version of a universal child care plan. Now, I won’t claim…
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The Trouble with Income Splitting

It appears likely that the Conservatives will announce a campaign promise to introduce “income-splitting”. Income splitting allows couples to divide their income between both partners for tax purposes. The Conservatives will try to depict it as a way to help Canadian families keep more of their hard-earned income. Don’t believe…
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Low Taxes for Whom? Flaherty’s Rhetorical Retreat

Although last week’s election-provoking federal budget was entitled, “A Low-Tax Plan for Jobs and Growth,” it notably did not address the corporate tax cuts at issue. Finance Minister Jim Flaherty’s speech began by listing the GST cuts, child-care cheques, Tax-Free Savings Accounts and higher personal tax credits, but never got…
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