Sunday, 26 April 2015

Income-Splitting Repeal

Q106: By the end of 2016, will the federal government officially announce that it will end income-splitting between parents?
Yes: 35%

The latest Conservative budget introduced income-splitting between parents, a measure which reduces the tax burden for families where one parent earns much more than the other.  The Liberals and NDP have promised to scrap income-splitting if they win the next election.

According to my previous estimates, the Liberals (or NDP) have about a 50% chance of winning the next election.  I think they are quite likely to scrap income splitting if they do win; unlike the TFSA contribution limit expansion, it is an expensive program.  Still, doing so would greatly annoy the families that currently benefit from income-splitting, so they might not do so (or they might only tweak the program).

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