Conservative tax break questioned - MoneySense

Conservative tax break questioned

Analysts say incoming-splitting would benefit only some families.

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The effectiveness of Prime Minister Stephen Harper’s proposed family tax plan has been called into question.

Harper said on Monday the plan would save 1.8 million families an average of $1,300 per year.

However, analysts are divided on the proposed initiative. Some say income-splitting would benefit only some families and exclude single parents.

Former Liberal and Conservative MP-turned investment adviser Garth Turner believes the plan is a family-friendly middle-class issue with a huge unfairness gap that will have to be addressed by politicians.

Legal experts believe that male breadwinners with high incomes have more to gain from income-splitting.

Senior citizens who currently benefit from income splitting will not be affected.

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