Wednesday, December 31, 2014

Welcome Income Splitting

Yes, it will only be available to families with children. And, apart from the restriction on the income one could attribute to the spouse, there will be another restriction on how much one could save from income splitting - no more than $2000. Still, it's better than nothing:
Income splitting would help almost half of Canadian families with children under 18. If it were adopted federally and provincially, typical middle-class families getting by on a single income would see substantive tax relief. For example:

A graphic designer in British Columbia with a salary of $49,920 would save 27% on taxes (down from $5,027 to $3,658)
An electrician in Ontario earning $56,150 would save 35% on taxes
A registered nurse in New Brunswick earning $72,800 would save 28% on taxes
Income splitting has been depicted as a tax break for specially chosen Canadians. However, currently certain Canadian families are unjustly disadvantaged by our tax code. Income splitting would eliminate this injustice, treating all families equally.

The disadvantage is clear since two families with matching incomes are taxed differently based on how their incomes are earned. Families that sacrifice workforce pay in order to address caretaking needs are penalized through higher taxes.

This long-standing injustice in our tax code is both unfair and unacceptable to Canadians. Recent polling confirms that Canadians, regardless of political preference, support income splitting. Opponents of the policy are a vocal minority.
The opposition parties keep blasting the Conservatives for what they claim is a "tax break for the rich"; the Liberals (primarily - Ralph Goodale and Justin Trudeay) claimed that a family would have to make as much as $160,000 to fully benefit from income splitting. Let's see if it's really so. Let's calculate together how much does one have to make to take full advantage of the $2000 tax break.

Our first tax bracket is 15%. The next one is 22%. By attributing part of his income to a spouse, one would save 7 cents on the dollar. How much income does one have to attribute to hit the $2000 ceiling? 2000/0.07=$28,571.42. Combined with the $43,953 threshold where the 22% rate kicks in, that amounts to mere $72,525. That's nowhere near $160,000 (not even half that much). And only hardcore lefties could argue that a family making $72,500 is somehow "rich".

Income splitting is there to provide middle income families with much needed tax relief. Hopefully, as the time comes for the next Federal election, all these families make the right chose and don't trade the long-awaited tax break for a legalized marijuana.

Wednesday, December 24, 2014

Merry Christmas

Here's something nice for Christmas Eve. Enjoy and have a Merry Christmas and a Happy New Year :)

Tuesday, December 23, 2014

Danielle Smith's Defection - Another "We Told You So" Moment

Danielle Smith blames the Social Conservatives for helping to push her to the PCs. I guess she was expecting the party's Social Conservative wing to just leave and slam the door behind them - after all she had done to marginalize them (among with the climate skeptics and the free speechers) in this couple of years between her election loss and her defection to the governing PCs.

A gentle reminder: low-tax progressives aren't actually conservatives.

Again - we told you so. The "right equation" collage reposted here, was originally published more than 5 years ago on Free Dominion.

Sunday, December 21, 2014

Brian Gallant & Unrestricted Abortion Funding - We Told You So

New Brunswick Right to Life says the legal basis being advanced for the provincial government’s new abortion policy is nothing but pro-choice propaganda.

Commenting on the rationale some MLAs used yesterday in the Legislature, executive director Peter Ryan said, “We heard the statement ‘a woman’s right to choose is the law’ ad nauseam,” he said. “That statement is pure propaganda. The Supreme Court has created no such right. To hang your hat on such hogwash is shameful. The assertion made would be laughable except its consequence will prove fatal for many children in this province,” he said.

Ryan said yesterday will go down as a dark day in New Brunswick history. He referred to the Legislative Assembly’s refusal to debate a historic change in provincial abortion policy. His association maintains the practical effect of the planned changes is tax-funded abortion on demand, “something not required by law, and contrary to good medicine, the will of New Brunwickers, and the tenets of morality.”

“Members had a window today to consider the plight of thousands of preborn children and vulnerable women whose lives will be put at risk by the pending removal of abortion restrictions January 1,” said executive director Peter Ryan. “Most chose to slam that window shut. To use a biblical term, they hardened their hearts. Innocent children will die as a result.”
Special thanks to the People's Alliance voters. It's their vote splitting that delivered all 4 tossup ridings to the Liberals. David Alward and the PCs weren't good enough for them - they got Brian Gallant and his radicalized Liberals. And so are all of us here in New Brunswick.