As expected, Stephen Harper announced a scaled back version of his income splitting proposal, but structured as a tax credit and not actual income splitting, paired it with a number of other measures like increasing the universal child benefit payments, and childcare tax credits so as to try to blunt the criticisms that income splitting mostly benefits the most wealthy of families and doesn’t benefit those who need it most – single parent families and those of lower incomes. Jennifer Robson takes the proposal apart, and notes the real winners are lawyers and tax professionals. Economist Stephen Gordon adds a few notes, which need to be said.
Not yet, no RT @davidakin: In #elxn41, PMSH promised Income splitting when budget was balanced. Is budget balanced? pic.twitter.com/PZ91hL4zLk
— Stephen Gordon (@stephenfgordon) October 30, 2014
Again, the surpluses that govt and PBO are projecting are based on scenario of spending cuts baked into 2014 budgethttp://t.co/j4TuHl16kP
— Stephen Gordon (@stephenfgordon) October 30, 2014
So what PMSH is promising today is to cut spending (where? on what?) in order to finance those tax credits.
— Stephen Gordon (@stephenfgordon) October 30, 2014
For that matter, NDP's daycare plan is also based on cutting spending (where? on what?) to finance subsidised daycare.
— Stephen Gordon (@stephenfgordon) October 30, 2014
And if the LPC ever gets around to making a spending proposal, it will surely be financed by cuts in spending (where? on what?)
— Stephen Gordon (@stephenfgordon) October 31, 2014