Split Decision

Hats off to Jim Flaherty. Canada's Finance Minister has left the building after 8 years on the job, and I for one, I’m going to miss the guy. Cause no matter what you think of Jim Flaherty, I can say this: He was never afraid to speak his own mind. Which is why on the way out the door he made it pretty clear that the Government’s plan for income splitting is a bad idea. 

Now this was a bomb shell in Tory circles because income splitting is the biggest promise that Stephen Harper made in the last election. And on paper it looks great. I mean the Government is going to take 3-billion dollars that hard working Canadians paid in taxes and just give it back. What's not to like? Well the problem is in the fine print. Jim Flaherty see, he saw the fine print. Turns out the vast majority of Canadians, 85 percent will not see a dime. Although we’re all going to have to pay for the TV commercials telling us how great it is. 

Income splitting is a massive tax break no doubt about it, problem is the people who will benefit the most are married couples with young children where one parent makes a lot of money and the other parent stays home. Someone like, I don’t know, who would be the poster child, the poster boy for this tax break. It would be Stephen Harper. There you go, he’s an average Canadian. He has a big job, makes a lot of money, his wife volunteers, he has lovely children. God bless him, he deserves a raise, and with this tax break, he's gonna give himself one. 

Now who’s not going to see any money? That would be everyone else. Those couples where both work like dogs but neither are rich. Single dads, single moms, sorry, no breaks for you. 

Stephen Harper has said that this is an excellent tax break designed to help Canadian families. Well I can't believe this needs to be said in 2014, Prime Minister, but families, they come in all different shapes and sizes. And here's an idea, if you're going to give a tax cut, how about giving one to all Canadians, not just Canadians that look like you.

Posted: 26/03/2014 8:26:30 AM | with 0 comments

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