Wednesday, February 28, 2007

Income Splitting

It's not even a month now until Budget Day (March 19), and the Tories have backed away from their Income Splitting promise. While I am not in favor of too many tax cuts, I believe in income splitting for seniors. Flaherty will probably not, according to the CTV story, permanently back down from income splitting, but they will for this budget. So instead of I.S., the Conservatives are going to give tax cuts to corporations and middle-class people; the people who don't need it. But when it comes to doing the right thing (I.S. for seniors) or buying votes (middle-class and corporate tax cuts), they will choose to buy votes.

So why do seniors deserve I.S.? It's simple: often, they don't have a ton of money in the bank. They are the people who built up this country. Lots of seniors once had prosperous, middle-class lives, but pensions often can't keep up to that. Seniors have payed taxes their entire lives when they had enough money to do so and live decently, but once they get into older age, have less money, and have given their share to society, they are still expected to pay the same taxes. Don't they ever deserve to be left alone?

But, we have a Conservative government, thus I do not expect good things to happen in Ottawa. So yes, according to the Tories, they will put I.S. on their To-Do List, but in the meantime, they will have to wait while middle-class people save up enough tax dollar savings to get a new SUV (in order to pollute their grandchildren).


Anonymous said...

Sure, that could have been a good idea 30 years ago, but within the next few years, we'll probably have more seniors than ever before. Imagine how much that would cost, and how much less everyone else would get from government services.

Sara said...

I am with you on the seniors issue but you have forgotten that middle income do not have a lot of money either. Someone on the radio said the other day she makes over $100,000 and considers the family middle income. Is that where you define middle income?
I'm lost on that one, because if it is then we would be poor working class!

Alex said...

Obviously, middle-class covers a large spectrum (maybe $40/50,000 - $110,000). My point was that middle-class people often make much more money than seniors, (middle-class people are more likely to have SUVs!), and middle-class people have a constant flow of income, and if something goes wrong in the stock market, etc., they can work a couple years more and make up for it. However, seniors are already retired, and most of the time can't get back into the workforce again if something goes wrong.

Kuri said...

Seniors don't really benefit from income splitting if they're retired. Their only income is investment income and if they're smart, they'll have their investment products divided between partners so that they're taxed at the same rate anyway.

Income splitting is about rewarding the so-cons - they're the ones with one spouse barefoot and pregnant, not earning anything while the other earns way more.

Anonymous said...

With all due respect, you are mistaken on this. The Tories aren't backing away from Income Splitting for seniors. That is going ahead. What you won't see in the budget is income splitting for working-age couples.