The Institute of Marriage and Family Canada (IMFC) is very disappointed that the Conservatives did not include income spliting in yesterday’s budget. “Unfortunately, family income splitting was not introduced in this budget,” they wrote in their review of the Conservative federal government’s Economic Plan. “Under the proposed 2009 budget, a two income family of four earning $60,000 would pay $4,415 in federal taxes. A single income family of four earning $60,000 would pay $6,043, a difference of 37%. The principle of income splitting would address this inequity head on, to the benefit of all Canadian families. Considering the current economic climate, families earning less than $60,000 would greatly benefit from income splitting.”
They did commend a few other aspects of the budget including the increase in the Basic Personal Amount which enables people to earn more before paying taxes. You can read their review on the Press Release page of IMFC’s website.




January 29, 2009
I was stunned to see that that Inc Splt’g was not carried thru in this years budget. Never mind all the other gingerbread proffered, there is not anything so important to seniors as IncSplt’g. No other taxpaying sector has had the effect of this recession been so focused as on Seniors. After 40 yrs of saving for Retrmnt to see a signifigant portion of their income reduced to 30% of its value, is just mind boggling. In addition there is even now the “threat” of having the so called fixed portion i.e.Company Pensions, being slashed. No one is immune to the consequences of recession, nor should they be. Seniors have however an added handicap to deal with-specifically that generally they are not able to go out and find some work-any work- to augment their income. Many are just too old and/or incapable of doing any work whatsoever. The USA has income splitting, proving therefore that it is not an unreasonable pipe dream. For too long seniors have been relegated to the backwaters of taxation consideration. Please put it back in the Budget!!