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Income Splitting

Created by dave. Last edited by dave, 17 years and 107 days ago. Viewed 3,103 times. #3
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Proposed Canadian Federal Income Tax Splitting

21 November 2006 Numbers, based on the 2005 Tax year (>>source).

Family IncomeTaxed as one earnerTaxed as two earners of half eachDifference
$40,000$45832x $1,491=$2,982$1601 (34%)
$80,000$13,8222x $4584=$9,168$4654 (33%)
$200,000$47,3512x $18932=$37,864$9487 (20%)

So one spin is: the more you make, the less of a tax break you get. The counter-spin is: the more you make, the more money you get to reduce your tax bill by.

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