Quote:
Originally Posted by opendoor
Why is a tax system that taxes individuals less "fair" than one that allows income splitting? And if the issue is fairness, then why shouldn't it extend to people without children?
And how does a tax break with an upper limit of $2K eliminate families making working decisions based on taxes? Pretty much anyone who benefits from this pays many, many times that in taxes already, so a $2K reduction isn't going to turn everything on its head.
And even if you accept that the $2K will provide a huge incentive one way or another, it has simply moved from encouraging lower earning spouses to work (in order to take advantage of their lower tax rate) to discouraging that work, which is awful for the economy. Right now a stay at home parent with a higher earning spouse could pick up a part time job when their children are school aged and pay a fairly low tax rate. But with income splitting, there's a disincentive because all of the sudden they're going to be in a higher tax bracket before they even start working.
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The cap on the benefit limits the effects of any incentive and makes this legislation just a shiny bauble of little real value.
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