Distributional impact of Tory Income Splitting
I recently posted on the CCPAâ€™s â€œMaking it Countâ€ blog covering election 2011 issues. In that post, I calculated the distributional impacts of the â€œFamily Tax Cutâ€ proposed by the Conservatives that would allow couples with children under 18yrs old to split up to $50,000 of their income. The â€œMaking it Countâ€ post is meant for popular consumption, but I figured readers might be interested in the full shebang so below is a more complete breakdown of who would benefit from the â€œFamily Tax Cutâ€ and by how much.
You’ll note that my estimates put the total cost at $2.7 billlion slightly higher than the Conservatives at $2.5 billion but the most important piece is how strongly the distribution of benefits skews to the wealthiest families.