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Drop income splitting and hike the deduction for child care

from The Globe and Mail

Gregory Thomas is Federal Director of the Canadian Taxpayers Federation. With a federal budget surplus now pegged at $6.8 billion – at least – the Harper Conservatives are hitting the fast-forward button on their timetable for tax relief. The challenge Stephen Harper faces, as the fall economic update rolls around, is the weakness of his 2011 election promise to introduce income-splitting for working-age couples – allowing the higher-earning spouse to transfer $50,000 of income to the lower-earning spouse, provided a child under the age of 18 is part of the household. more

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