Income splitting comment worth reading...
A comment to Andrew Coyne's column on income splitting:
Great point.
Income splitting has been available to owners of Canadian corporations (i.e. small businesses) for some time now, whereby their spouses become shareholders of their businesses and receive dividends and/or actual salaries. In essence, if I have $100,000 in profits in my corporation, it is often more beneficial to pay that out in equal parts to a spouse and the active shareholder, or $50,000 each.
What is being proposed is much more far-reaching in its scope of course.
AC points out that there may be some concern over this potential move as being a tax-cut for the rich - in fact, the rich (the rich being incorporated small business owners) have had these opportunities for years!
If anything, this a devolution of the system back to the middle class so any argument that this will pander to the rich, is, in my opinion, dead in the water.
Great point.
