Rhys Kesselman considers two of the Conservative government’s promised tax reforms.
Rhys Kesselman considers two of the Conservative government’s promised tax reforms.
Once the federal budget is balanced, the Conservatives plan to double the TFSA’s annual allowance to $10,000 and to permit income splitting for couples with children under 18. These are costly schemes, each running ultimately to billions a year.
While these proposals may appear to have wide appeal, most Canadians would gain nothing from them. The tax savings would flow disproportionately to the highest earners. Moreover, the ostensible goals of these proposals would be much better achieved by major changes to their structures.