Canadian Union of Public Employees (CUPE)

Canadian Union of Public Employees (CUPE)

October 30, 2014 16:17 ET

Income-splitting unfair no matter how you dress it up

OTTAWA, ONTARIO--(Marketwired - Oct. 30, 2014) - Stephen Harper's announcement today does nothing to change the basic truth about his government's income-splitting proposal. The plan is unfair and benefits primarily a small minority of the richest Canadian families.

Income-splitting is such bad policy that even the Conservatives' traditional allies have panned the proposal. The right-leaning CD Howe Institute has stated that it is bad economic policy and bad social policy, while Harper's own former finance minister, Jim Flaherty, criticized it for benefiting only the small minority of the richest Canadians who least need a tax cut. In fact, 86 per cent of Canadian families will see no benefit at all from income-splitting. Painted as part of the Conservatives' family agenda, along with the inadequate Universal Child Care Benefit, the proposal does nothing to address the pressing crisis most families face trying to find affordable child care.

"No matter how it's dressed up, income-splitting is bad policy. It doesn't help Canadian families. Instead it just increases income inequality in Canada," said Paul Moist, CUPE National President. "What Canadian families need is a universal child care program. Access to quality, affordable child care is the fair solution. It is vital for our children, and it helps families work and study while keeping the wheels of our economy running smoothly."

While the Conservatives are happy to simply tweak proposals that benefit a small minority of the richest Canadians, the NDP has proposed a $15-a-day child care plan that will provide a million child care spaces across the country and ease the child care crisis for all Canadian families.

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