OTTAWA, Nov. 21 (UPI) -- The Conservative government plans to introduce a change in Canadian tax law that would reduce the burden on many married couples and families.
Under current law, all working people pay taxes as individuals. Under income-splitting, families would become a unit for tax purposes, reducing the overall tax paid when members have unequal incomes, the Toronto Star reported.
Finance Minister Jim Flaherty may introduce a proposal when he delivers his annual economic message on Thursday.
"Canadians pay too much tax, and the tax burden on individuals, families and businesses is still too great and must be reduced," Flaherty told a parliamentary committee earlier this month.
The tax savings would be greatest when one spouse does not work or has a much smaller income than the other. Critics argue that income-splitting would discourage wives from seeking outside employment, would make the tax system less progressive and would be unfair to single people.
