Under existing tax rules,a two-income couple where one spouse earns more than the other pays more federal income tax than two-income couple where the two spouses earn equal amounts.
And a single income family pays even more.
A family with two incomes that are essentially the same would not see any real benefit under the plan.
“A re-elected Conservative government [would] end the unfairness against single-income families with children and two-income families with children where one spouse earns more than the other,” the Tories said in a release.
“This will also ease the burden on double-income families by allowing them to keep more of what they earn.”
The Conservatives say this “Family Tax Cut” is consistent with the tax treatment of families in other countries. “Currently France, the United States, Germany, Belgium, Greece, Luxembourg, Portugal, Switzerland, Ireland, Norway, Poland and Spain allow families some form of income splitting.”
As it stands, "the tax system doesn’t recognize the fact that many, even most families, pool their income to pay their household bills,” Mr. Harper said. “Instead it treats families the same as room-mates living under the same roof with no financial attachment. That’s not realistic; that is not fair.”
“For example two parents earning $60,000 and $20,000 pay almost $1,300 more in federal taxes than two people in an identical household each earning $40,000 even though their combined income is the same,” Mr. Harper said.
“We think once the budget is balanced that fixing this should be one our highest priorities.”
But the Tories are forced to delay their promise until there's more money in Ottawa's coffers.
As last week’s federal budget indicated, big deficits mean money is tight. Therefore one of the biggest challenges for the political parties on the campaign will be to keep promises affordable and properly costed.
The Tory announcement comes as the federal parties move to establish themselves on issues related to families and the battle for middle-class voters begins.
As last week’s federal budget indicated, big deficits mean money is tight. Therefore one of the biggest challenges for the political parties on the campaign will be to keep promises affordable and properly costed.
Mr. Ignatieff will begin rolling out major policy announcements this week on the cost of post-secondary education for families. The Liberal Leader has emphasized how middle-class families want to be able to afford to send their children to college or university, but are also worried about taking care of elderly.
The Liberal Leader is spending Day 3 of the election campaign in Toronto and Mississauga. He began the day with a press conference at the Fairmont Royal York to attack the Conservatives’ record on what he sees is wasteful spending. Ajax-Pickering MP Mark Holland, who was the Liberal point man last summer on the spending at the G-8 and G-20 summits, was at his side.
Mr. Ignatieff, however, has yet to release any substantive measures himself. Instead, he was on the defensive reacting to the Conservatives first policy announcement of the campaign. He said his full campaign will be released within the first week of the campaign and that it will be more affordable than the Conservative plan – partly by rolling back tax cut commitments made by the Tories, including one reduction already made and future planned relief.
