It’s back, albeit in a watered down form.
The Prime Minister has reintroduced his plan for high-earners to shift part of their income onto their spouse’s tax return in order to sneak into a lower tax bracket. Only this time, the total tax benefit has been capped at $2,000.
The fundamental problems of the income splitting remain.
What does this iteration of the plan do for couples that make a similar level of income? Nothing. And single parents who arguably have the greatest demonstrable need for some extra help? Again, nothing.
It’s a scheme that is inherently unfair because it only rewards families already earning enough to get by on one income. In an age when the growing gap between the rich and poor and the diminishing prospects of the middle class are two of the most challenging social problems we face, this is taking us further in the wrong direction.
Not long before he died, then-finance minister Jim Flaherty did something few in his party ever do and publicly questioned the wisdom of the policy being pushed by the PM.
Packaged with the announcement, however, was the news that Conservatives are also upping the universal child-care benefit for families with kids under six to $160 per month. It’s harder to find fault with that.
But the government is engaging in bureaucratic gymnastics, making the change effective Jan. 1 and then issuing retroactive payments in July 2015 in order to make sure the cheques start arriving right around the same time the election signs do.
