Because Canada's tax system is based on individuals, not families.Thanak wrote:The big question I have for people who oppose this is why should a familly where one person earn 75k$ while the other earn 25k$ pay more tax than another familly where both earn 50k$ ?
Sure, but it doesn't. The tax code contains a few provisions and credits that families can avail themselves of, but there's no such thing as "married filing jointly" in Canada, as they have in the US.Thanak wrote:If the government recogniser a familly as a fiscal unit, then their income should be treated as one unit.
To extend your example, why should a family where one parent earns $75,000 and the other earns $25,000 pay less tax than a family comprised of a single mother earning $100,000? The "household" is bringing in the same income, yet the two-parent household is able to claim the basic personal exemption twice, in addition to all other credits. Is that fair?
Is it the government's job to encourage breeding?Thanak wrote:Limiting it to famillies with children is more questionable but again, if the governement makes the choice of helping the local population raise children, then it makes sence.
Agree 100%, with the exception that capital gains should still receive preferential taxation (otherwise why would anyone put their after-tax dollars at risk if their gamble pays off and any gains are just going to be fully taxed as income again anyway?)Thanak wrote:I would rather have the governement cancel all TFSA, RRSP, RESP, income splitting, child benefit, devidend tax credit,... basicly everything that makes the system complex and replace all of these with a lower flat tax rate that no one can avoid.