06 August 2015

#3 Income Splitting for the Wealthy

It sounds lovely, having a program to help families reduce their income tax burden by redistributing their incomes between them to take advantage of lower tax rates. Sounding lovely doesn’t necessarily translate into tax savings for all…and in fact the analysts were pretty unanimous in pronouncing this measure advantageous for single-income wealthy families, but no so much for others.

If you already have equal incomes (low or high), this does nothing for you. If you are a single parent, this does nothing for you. If you are a couple with divergent income levels but no minor children, this does nothing for you.

Just another program that sounds good and continues to transfer more wealth to those who already have it.

Further reading here.

Pretending to share
for income tax purposes
keeps fat wallets fat

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