By Dave Hodson | September 27, 2007
Canadians are an overtaxed people and are in need of some relief on that front.Â I’ve also long been in favour of allowing Canadian couples to split their incomes for income tax purposes.Â Unfortunately, reports earlier this year indicated there was not enough room in the federal budget to comfortably allow it.Â However, given today’s announcement of an expected federal surplus of $14 Billion, the time has come to finally allow income splitting.
Our personal spending power is largely driven by our family income, not our individual income.Â So why do we pay tax based largely on our individual income?Â Why should a family where each spouse earns $60K per year, pay less income tax than a family where one spouse earns $100K and the other earns $20K?
With a surplus (also known as over-taxation) of this magnitude, Canadians must receive a tax cut.Â Therefore, why not make income splitting a large part of that cut?Â The recent plan to allow seniors to split pension income was a good start, but it’s time to extend that benefit to all Canadians.
Allowing income splitting would be the best way for Stephen Harper to show that he supports families and to show that he supports returning hard-earned tax dollars to the working people that provided them in the first place.
The introduction of income splitting for Canadians should be a centerpiece of the Conservative’s upcoming throne speech.
Cross-posted at Western Standard.Print This Post