Income-splitting discussion will have to wait until budget is balanced: Harper


GORMLEY, Ont. – Stephen Harper says reducing taxes for Canadian families remains a high priority, but any discussion about income splitting will have to wait until the budget is balanced.

The prime minister first promised during the 2011 election campaign to allow individuals to transfer up to $50,000 to a spouse for tax purposes, as long as they have at least one dependent child under 18.

The promise was contingent on the budget being balanced.

The issue came up after Finance Minister Jim Flaherty tabled his latest fiscal blueprint, which projected a $6.4-billion surplus in 2015, just in time for the next federal election.

However, Flaherty said Wednesday that he’d rather spend the extra cash on reducing the $619-billion debt and lowering taxes.

When asked about the income-splitting promise Thursday, Harper said the government will “have the discussion about what to do next” once the budget is balanced and there’s a surplus.

“But we’re very clear that we’ve made some commitments and that reducing taxes for Canadian families will be among out highest priorities as we move forward,” he said.

Get our daily briefing on innovation, leadership, technology & the economy.
Weekdays at 6 AM ET. Learn More »

One comment on “Income-splitting discussion will have to wait until budget is balanced: Harper

  1. I find it interesting that our government was quick to implement income splitting on Defined Benefits pensions, but will not consider income splitting for young families who really need it. The government has stated that this would only benefit a few of the more wealthy, that being said I would love to see the analysis that was done on the splitting of DB pension incomes. How much in taxes are these wealthy politicians avoiding by being able to split the income from their “gold plated” pensions.
    Income splitting for young people with children would be a great benefit, it might allow a mother to remain home with her young child instead of trying to find a job outside the home the income from which would likely just barely cover the day care costs for the child. Add to this, the family stresses from financial struggles and the social costs resulting from this and I believe this does not even make economic sense.
    This rationale is backwards and I believe we all need to hold our politicians to task for this type of greedy, self centered behavior.