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Highlights of Conference on Income splitting
Ottawa Jan 30 2007
Hosts: Sara Landriault, Beverley Smith
MP Host: Garth Turner, MP
Introductory remarks: Garth Turner
Introductions of speakers: Sara Landriault
Overview of the Issue:
Beverley Smith outlined the 100 year history
of how to value unpaid labor and
made historical reference to incomesplitting,
deductions for spouse or children,
guaranteed annual income, wages for housework,
pensions for unpaid work and other proposals
in Canada and in other nations. Copies of
her longer papers on the international practice
of incomesplitting and on the history of
tax policy for unpaid work in Canada are available
through her at
bevgsmith@alumni.ucalgary.ca
Economics Panel
Dr. David Murrell , economics Professor at UNB
Dr. Murrell noted inequities in taxation of equal
earning households and pointed out the benefit
to society of those who are raising children He
looked at issues of drop in birth rate and examined
estimates made by TD Banks Don Drummond of
the cost of income splitting. He examined the
argument that such a move would benefit the rich,
examining options to exclude them or to enhance
personal deductions, or spousal tax credits including
suggesting raising the spousal deduction to
$12,000 to value the work of the unpaid caregiver.
Dr. Murrells paper is available to the press and
public through him at
Dmurrell@unb.ca
John Williamson, Canadian Taxpayers Federation
Mr. Williamson quoted Senator Phil Graham of
the US who countered a claim that government
cared as much as he did about his children, saying
Really. And what are their names? He argued that
parents are best qualified to know what is in the childs
best interest and examined cost estimates of the
incomesplitting proposal, noting that right now
the top 10% of earners, earning over $64,500,
pay half of the federal tax revenue. He revealed that
82% of Canadians earn under $50,000 a year
and examined how income splitting would benefit
that sector and how that sector is not in practice
wealthy. He illustrated current tax penalties for
households of various incomes and how income splitting
would reduce their tax burden. He went on to point out
his organizations endorsement of broadbased
tax relief and a single tax rate as in Alberta to correct
some of the current inequities
jwilliamson@taxpayer.com
Dr. Philip Merrigan, economist at UQAM
Dr. Merrigan examined in detail the French system of
income splitting which permits households with and
without children to in the end have nearly identical
standards of living. He examined by contrast the current
child tax benefit in Canada, which is small. He outlined
parental allotment systems such as in France which have
led to a birth rate of 2, in contrast to Canadas of 1.5
He then examined the Quebec system and its unequal
benefit for those who do and do not use subsidized
childcare, outlining how government help to those
of varying incomes is inequitable. He observed that
in Quebec income splitting would be beneficial. He then
outlined philosophical bases for social policy, noting that
of Finland and looked briefly at pension options for
valuing unpaid caregiving.
Merrigan.philip@uqam.ca
Caregiver Panel
Kathy Graham of the Assoc of Daycare Care Operators of Ontario
Ms .Graham spoke as an advocate for care of children and as a single parent.
She noted current inequalities where the selfemployed are excluded
from many benefits including CPP and pointed out that the care profession is
itself lowpaid. She outlined how inequities where the deduction for a child is
insensitive to the age and costs of raising a child and that a child
is not equivalent to spouse in terms of financial contribution
to the household.
kdaycare@kos.net
John Toft of the Harmony Centre for Community Living and the Families
Matter Cooperative Inc, spoke as a parent of a child with autism.
He pointed out the effect on his household income and the career
trajectory of his wife after the diagnosis of autism of their child. He noted also
the impact on their social life and mobility, and on their pensions
of the commitment they had made to provide care of their child.
He outlined how income splitting would benefit those in such
circumstance
Anne.toft@sympatico.ca
Caroline TappMcDougall of the Canadian Occupational
Therapy Foundation and writer of The Complete Eldercare
Guide spoke of her experience with elder care and the
financial impact on households which have this
responsibility
mcdougal@bcsgroup.com
Political and Legal Rights Panel
Elizabeth May, leader of the Green Party of Canada and
past executive director of the Sierra Club of Canada
examined tax policy from the point of reference of Jane
Jacobs about the importance of family and community.
She cited the problem of time stress and the value of
the informal economy and outlined how current policy
has led to a drop in participation in the volunteer sector.
She argued that income splitting would be one way to
address some but not all current social problems and
that it had great merit. She said the cost of such
a proposal might be more bearable if there was less
financial help from government to large corporations
She also urged further discussion of other promising
proposals including longer maternity leave and
guaranteed annual income, more paid holidays
debra@greenparty.ca
Rebecca Bromwich, law professor at Fanshawe College
and law lecturer at UWO examined misperceptions that
the discussion of income splitting was only to benefit
stayathome mothers, noting that it would in fact reduce
tax for any household that shared income. She quoted
Nellie McClung about the underreporting of the
pleasure women take in caring for their children and
examined how the significant number of people
doing care roles requires that we address their needs
too. She noted current inequities of tax benefits
for the selfemployed regarding maternity leave and
noted that it is still predominantly women who do the care role.
She examined the Supreme Court case of Moge in 1985
where the court ruled that formal equality on paper was
not sufficient when a marriage ended because the court
must also look at what was practicable. She pointed out
how family law has progressed and pointed out how the
advance of womens rights had itself enabled a discussion
of the value of unpaid work.
Copies of her paper are available through her at
Rebecca@jbbarrister.com
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