Toronto Star, November 4th, 2014:
Justin Trudeau: Income splitting not a wise investment for Canadians
The Conservative government’s proposed tax break would benefit most those who need the least.
For generations, Canada has been built by hard-working people who want to make sure their kids have a better life than they did. And every day, middle class Canadians continue to do that. However, times are tough for millions of Canadians who are simply trying to make ends meet, let alone save for their child’s education or their own retirement. Jobs are scarce because of our weak economy. People worry if our health care system can survive funding cuts. This is why a federal surplus should be invested wisely.
Income splitting is not a wise investment for Canadians. It will eat through virtually the entire federal surplus without providing any benefit to most Canadians, without creating a single job, and without helping one young person get some opportunity to get ahead.
Granted, the policy Prime Minister Stephen Harper announced last week will benefit some Canadians. However, it is not a policy designed to help all or even most Canadians. In fact, despite changes the Conservatives made to this scheme, it will still benefit the wealthiest Canadians most of all. Nearly half the benefits would flow to those making over $100,000 a year.
In short, Mr. Harper appears to believe the Canadians who need the least should be given the most. That’s not fair.
Not only does Mr. Harper’s plan not benefit most middle class Canadians, it relies on them to fund it. Think about a single mother earning one income who has to work hard to ensure her child goes to school, that the fridge is always stocked, and there is gas in the tank. She’s also worried about putting money away for the future. Meanwhile, thanks to the Conservative government raising tariffs on thousands of household goods, anything from a new bike to a new TV will soon be even more expensive.
This is the person Mr. Harper thinks should pay for those who make double or triple her income to get a $2,000 tax break.
And for whose benefit? Probably not yours. Perhaps you and your partner make approximately the same amount. Forget income splitting; it doesn’t apply to you. Does your partner make $75,000 and you make $44,000? Again, forget it. It’s not for you. Maybe you earn very little, your partner earns more, but not significantly. Does income splitting help you? That depends, but in many cases, it won’t.
It’s simply not a good way to help Canada’s middle class families. The government has offered a giveaway to well-off families with billions of dollars of taxpayer money.
Since I became Liberal leader, I’ve focused on building a better Canada for the middle class. We have a responsibility to make sure that hard work so many Canadians put in day after day is not in vain. Our children deserve to inherit a Canada that is fair and gives everyone the chance to succeed.
Rather than implement short-term tax breaks for the wealthy, the government should be investing our surplus in those programs and projects that will best benefit Canadians both now and in the long-term. Smart investments in infrastructure will create jobs in the short-term and prepare Canada to confront the challenges of the future with a solid foundation — quite literally, in some cases.
Canadians have sacrificed so our federal government can have a surplus. Now, it’s time it was reinvested properly for the benefit of as many Canadians as possible. Investments in innovation, higher education and health care will do that better than a targeted tax break for Conservative voters.
For that is what this is. Income splitting is a cynical policy, designed by a tired government short on ideas, now reheating old concoctions as their next campaign policy menu. Make no mistake: this is not an attempt at resolving growing inequality in Canada, nor is it a good way to use our surplus to the advantage of every Canadian.
This Conservative government has the worst growth record of any since that of R.B. Bennett during the Great Depression. Even they know income splitting won’t grow the economy or create a single job. They know it won’t help ordinary Canadians.
Canada needs to ensure the middle class grows, and that we remain competitive in the global marketplace. Jim Flaherty knew that. But Mr. Harper doesn’t care. What he cares about is getting elected. This policy will not help Canadians. Instead, it will simply divide us — those who benefit from Mr. Harper’s tax break, versus the majority who don’t.
We can do much better than short-term tax breaks for the wealthy. We can introduce benefits that actually help the middle-class, and those folks who want to join it. We can strengthen Canada’s retirement security. And smart investments in infrastructure and innovation will create jobs and grow the economy. That’s how we can make a surplus really work for Canadians. We can build a Canada that is competitive, innovative and prosperous.
Most of all, we can build a Canada that provides opportunity for all Canadians, not just those the prime minister needs to vote for his party.
Justin Trudeau is the Member of Parliament for Papineau riding and leader of the Liberal Party of Canada.
"Are you in that category Art, Les, Pierre?"
NO. We are both seniors but do not require income splitting for tax purposes.
Over the years, we have planned our financial affairs so there would be no need for such "you are here today, you may be done tomorrow" tax gimmicks.
I think the point most "centrists" (Reform partisans call them "leftists") are trying to make is that there are just so many billions of dollars the government can give back to taxpayers. The Harper government - since taking power - has clearly favoured large foreign corporations and high income earners.
Many Canadians feel that the money used for those tax breaks could have been used differently to improve the quality of life of all Canadians instead of concentrating on those who do not really need tax breaks. It has nothing to do with individuals using or not using specific tax breaks instituted by the current or previous governments.
Sometimes, one must look at the "big picture" to better understand the needs of the country and its citizens.
For the first time in Canadian history, more than half of the federal government’s revenue in 2014 will come from personal income taxes -- a vivid sign that Canada’s tax burden is slowly shifting away from corporations and onto consumers.
It’s the apparent result of successive Liberal and Conservative governments that have cut corporate taxes far more aggressively than they have cut personal income taxes, while increasing “hidden taxes” that mostly impact low-income and middle-income workers.
The federal corporate tax rate has been nearly cut in half since 2000 -- from 28 per cent at the turn of the century to 15 per cent in 2012. The Harper government boasts that this will give Canadian corporations the lowest tax rate on new investment of any G7 country.
Personal income taxes, on the other hand, have remained at more or less steady levels through this time. The lowest tax bracket, which now applies on incomes below $42,706, has fallen slightly to 15 per cent today from 17 per cent in 2000. The top marginal tax rate has stayed the same, at 29 per cent.
Which is why -- according to an analysis of recent government data by economist Toby Sanger -- Canadians’ personal income taxes will account for more than half of government revenue next year. That’s up from only 30 per cent five decades ago.
http://www.huffingtonpost.ca/2013/11/24/corporate-personal-taxes-canada_n_4333694.html
Our leader in China
Bombardier Commercial Aircraft announced today that China's sole specialized regional airline, China Express Airlines (China Express), is the previously announced unidentified customer that had placed a firm order for 16 CRJ900 NextGen regional jets and had taken options for eight additional airliners of the same type. This purchase agreement was initially announced on June 30, 2014.
The announcement was made today in Beijing, in the presence of His Excellency Li Keqiang, Premier, People's Republic of China; The Right Honourable Stephen Harper, Prime Minister of Canada.
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