Tuesday, February 13, 2007

Income Splitting - It's the right thing to do

This post is for Sara (Choice for Childcare), whom I greatly admire. She is a real trooper when it comes to walking the talk; whereas most of us just sit back and complain.

Today is her Income Splitting Blogburst. Already Torian has a post up, and there is another excellent one at Cyrano's Steel.

My husband and I made the decision long ago to have one parent stay home with our children. It was a decision we never regretted, but it has come at a big cost financially. Things would have been much easier with income splitting. We often thought it unfair that dual-income families were given special treatment.

There are many reasons for the government to consider income splitting, and I believe that Jim Flaherty does see this as an issue of equality. Perhaps it isn't viable this time around, but with leaders like Elizabeth May also supporting the idea, I think income splitting will eventually become a reality in Canada.

With declining birth-rates, families now need our encouragement and support more than ever. Our economy depends on it. But this support should be extended to all families - not just those with two incomes.

In a country that holds the notion of equality high on a Canadian flag-draped pedestal, single-income families should not be discriminated against.

It may be too late for my family, but let's do the right thing for Sara and all the Canadian parents who want to care for their own children.


Richard said...

"It may be too late for my family"

which makes it unfortunate if IS is tied to having young kids at home. Joint tax forms, or flat tax, would be better.
as you're surely aware, after years of SAH parenting (and in many cases, volunteering to the benefit of the community, it's difficult to find the pre-SAH salary level on reentry to the job market.

Sara said...

richard, this is just a start.

Anonymous said...

That is so true Richard. After 25 years in the home as a SAH mom, I cannot get back into my field without re-educating, since I have a degree in Computer Science.

PGP said...

Once upon a time there was a much simpler income tax act.
Husbands whose wives did not work or worked little could claim them as dependents. Or vice versa!
Joint income tax filing was the norm and it worked just fine.
Then the demographics changed and more spouses went to work. Each claiming separate income and filing individual returns. Once critical mass had been achieved and a majority of households became two income the acceleration of incoming revenue to the government allowed the Liberals to go on a hog wild borrowing and spending spree that put our economy at risk of collapse.

The federal government at some point changed the rules making the spousal incomes linked and a non-working spouse less of a tax benefit. And that's where we sit today.

I cant recall for sure the exact timing of those changes but I'm pretty sure that Jean Chretien had a lot to do with it!

As a conservative I am all for fair taxation and an end to using taxation as a means of social engineering. Taxation and government spending both need to be responsible.
While I'm not convinced that income splitting for spouses is either a solution or a problem...I am inclined to support the idea as a way to reduce the tax pressure on families. Good luck!

vicki said...

pgp...You are right on...the timing of the change was coincidental to my choice to stay home , and the work of the SWC(SoW at the time). Apparently some were offended by the word 'dependent'...didn't fit their agenda for a couple to privately agree for the wife to be 'dependent' on the husband.
Isn't it funny when you see that Dion wants the female Lib candidates to 'depend' on him to get their nominations...lol
keep up the good work...hope the 'blogburst' has an effect...

Joanne (True Blue) said...

Isn't it funny when you see that Dion wants the female Lib candidates to 'depend' on him to get their nominations...lol

Very ironic, Vicki!

percyq said...

What Sara wants is to go on welfare while her husband works. What phonies you conservatives are when you preach personal responsibility and non-intervention in the market place. No, wait. You're phonies on every issue.

Brian in Calgary said...

I feel sorry for percyq, who obviously cannot make a point, however specious it seems, without resorting to name-calling. Obviously a very unhappy person.