Income Splitting

[RB]

so who will it benefit:

- the rich?

- the poor?

- middle class

I think in a social context that this income splitting might allow married folks to actually stay together.

Paul Vieira, National Post

Published: Wednesday, November 22, 2006

OTTAWA - Finance Minister Jim Flaherty acknowledged yesterday he is considering a plan that would cut taxes

Income splitting -- which lets couples average out their income, lowering the overall tax a family pays....

Income splitting provides healthy tax savings for couples in which one partner has a higher income than the other. For instance, a household with two income earners who make $75,000 and $25,000 could see their tax bill drop by $1,030, by lowering the tax rate paid by the higher earner.

[watching&waiting]

Why is this thread started when we already have a thread about family tax splitting already going on. This should just be merged with that thread.

[Renegade]

I think in a social context that this income splitting might allow married folks to actually stay together.

I doubt it. There is already a huge fiancial benefit to married couples staying together, and the tax benefit provided by income splitting is pretty insignificant by comparison. Yet, despite these beneifts, couples still split. I doubt that the benefit provided by income splitting will sway them to stay together.

[RB]

Why is this thread started when we already have a thread about family tax splitting already going on

sorry, i didn't have time to follow all the threads closely, and it escape me to search - i didn't have the time...apologies

I think in a social context that this income splitting might allow married folks to actually stay together.

I doubt it. There is already a huge fiancial benefit to married couples staying together, and the tax benefit provided by income splitting is pretty insignificant by comparison. Yet, despite these beneifts, couples still split. I doubt that the benefit provided by income splitting will sway them to stay together.

somehow I always believed that "marriage" would maintained itself, but the statistics always prove wrong. Well, in a social context, the splitting of income can also further demise the institution of marriage to greater divorces and greater numbers in common law. But, it does create a disincentive for perspective mothers, it encourages women to stay at home.

Rich folks are the ones who usually allow their mates to stay at home for the longest while so perhaps they will benefit the most?

Poor people like myself won't benefit at all - there is nothing to distribute/redistribute....

[Wilber]

Rich folks are the ones who usually allow their mates to stay at home for the longest while so perhaps they will benefit the most?

"Rich" is a relative term but certainly those with the biggest discrepancy in incomes will benefit the most.