Tuesday, June 10, 2014

Broadbent Institute: We've got them talking about income splitting

June 10, 2014

If Stephen Harper’s intent was to design a tax policy that makes inequality worse, then he can pat himself on the back for a job well done -- because that is exactly what the Conservatives’ family income splitting tax scheme will do.

Our study kicked off Question Period today, and you can read news coverage explaining just how unequal it would be.

The new study shows that the majority of families the tax scheme was designed to help -- those with children under 18 -- stand to get nothing. Two-thirds would get less than $500 while less than 4% -- some of the wealthiest families in Canada -- would receive a benefit of more than $5,000.

Meanwhile, nine out of 10 Canadian households would receive no benefit at all from the proposed tax policy, and fewer than 1% of all households would be eligible for benefits in excess of $5,000.

The federal price for this scheme? $3 billion.

Think of what we could build by investing this money in priorities for lower-income families: improved parental benefits under Employment Insurance. Increased child tax credits. Enhanced access to quality child-care services.

Canadians are speaking out against income splitting like never before. Help us spread the word -- and share our new findings with your friends:

Rest assured we'll continue to press for these priorities.

Rick Smith
Executive Director
Broadbent Institute