This morning an article on taxation "Most have little to gain from income-splitting" in the Business section of the Vancouver Sun newspaper drew my attention. Most mornings I scan the headlines just to get a general sense of what is happening in the world. This time, however, I read the whole article, since it's a subject I've been interested in for the last 5 years, since my income bracket started to push toward "high earners" level.
In this article, a senior economist, David MacDonald, says "it wouldn't help the middle class either, since the top third of Canada's richest families would receive $3 of every $4 spent on income splitting".
First of all, I don't believe it's a good way to start a discussion or make someone think when an article starts with the opinion of a so-called authority such as "a think tank" or "scientists" because it supports an authority suppressing critical thinking. I've lived long enough to see all kind of authoritative predictions or reports misfire, such as the likes of Al Gore predicting ice caps melting by 2013. Second of all, it might do us all good just to present the facts and leave the opinions behind.
To me personally, this initiative of income splitting will benefit enormously. I've been working 3 jobs so my wife could stay home and take care of the kids. This is how I became a so-called "high earner" - my hard work is rewarded with a comfortable lifestyle. My wife and I have been unofficially splitting my income since she helps me in my businesses, but it would make sense if this splitting was official. This is a ruling I am hoping will happen. Why should the hard working people like me be punished with paying high taxes? Is it not the low taxes that create jobs? Why would someone take the risk of opening up a business and as an "added benefit" face another risk of paying exorbitant tax if the business is successful.
My definite vote on this: I do benefit from income splitting.