Conservative tax break questioned - MoneySense

Conservative tax break questioned

Analysts say incoming-splitting would benefit only some families.


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.