(Ottawa) -The Institute of Marriage and Family Canada continues to look for tangible tax relief for Canadian families. While there have been no tax increases for individuals, neither are there any tax decreases. Canadian families look forward to the day when they will be able to keep more of their own hard earned money. “Our research confirms the number one family stress is family finances,” says Executive Director Dave Quist.
“I am pleased that the government has recognized that single parent families have been unfairly penalized through an excessive tax clawback of the Universal Child Care Benefit,” continued Quist. Under the new budget proposal, single parents could elect to have the Universal Child Care Benefit claimed by one of their eligible dependents, thereby reducing or eliminating any additional taxation. “This is a significant step forward to family income splitting for all Canadian families. The IMFC has been talking about family income splitting and this scenario specifically with elected officials for some time now,” stated Quist.
Under the proposed 2010 budget, a two income family of four earning $60,000 would continue to pay $4,415 in federal taxes. A single income family of four earning $60,000 would pay $6,043, a difference of 37 per cent. Quist explained: “Family income splitting would address this inequity head on. As we emerge from this difficult economic period, families earning less than $60,000 would greatly benefit from income splitting.”
“While there are some positive steps for families in this budget, the IMFC reiterates the need for continued broad based income tax relief for families, which could be achieved through family income splitting,” said Quist.
“A strong Canada depends on strong Canadian families. Given the economic climate, this budget takes baby steps in the right direction,” closed Quist.
For additional information or comment, please contact: Dave Quist, Executive Director at 613-565-3832.