McGuinty Denies Fairness to Ontario Families
Fri, 06/13/2008 - 15:50
QUEEN’S PARK – Tim Hudak, MPP for Niagara West-Glanbrook, vowed yesterday to continue to fight for the fair treatment of Ontario families who choose to have a spouse stay at home or work part time, despite the opposition of Premier Dalton McGuinty.
Tim Hudak speaks to his Private Member’s Bill - the Fairness for Families Act - in the Legislature June 12Tim Hudak speaks to his Private Member’s Bill - the Fairness for Families Act - in the Legislature June 12Hudak’s Private Member’s Bill, the Fairness for Families Act, was brought forward for second reading yesterday in the Legislature. The Bill had support of the PC Caucus and members of the NDP and Liberal parties, but enough Liberal MPPs were whipped to vote against the Bill to defeat it.
In doing so, the McGuinty Liberals refused to provide tax relief to hard working Ontario families who are finding it increasingly difficult to make ends meet in Dalton McGuinty’s Ontario.
“If passed, the Fairness for Families Act would have eliminated the provincial tax penalty imposed on families who choose to have one spouse stay at home or work part time,” Hudak said. “It would have also helped formerly dual-income families who have been impacted by the loss of 200,000 well paying manufacturing jobs through difficult times by lowering their tax burden.”
In Ontario and across Canada, single earner families pay much higher income taxes than dual-earner families who make the same income. For example, a typical Ontario family with one spouse earning $70,000 pays $14,165 in provincial and federal income taxes while a typical family with two spouses each earning $35,000 pays a combined $10,364, a difference of $3,801 or $316 per month.
The Fairness for Families Act sought to correct that inequity in Ontario by allowing married or common law couples to split their income for provincial income tax purposes. In the example above, the single earner family would be able to split their income equally at $35,000 each and therefore pay equivalent provincial income taxes as the dual earner family.
“I am disappointed that the Liberal Government voted against lowering the tax burden on Ontario families,” said Hudak. “This was the right thing to do. Families are the key decision making unit and the government should not punish families who chose to have a parent stay at home or work part time.”
Many countries including the United States, France, Germany, the Czech Republic, Ireland, Luxembourg, Poland, Switzerland and Portugal already allow for some form of income splitting.
“Families make important financial decisions, such as buying a car or taking a family vacation, based on total family income,” Hudak said. “Taxation should be based on the same principle.”
Supportive Quotes:
“I am pleased to see that MPP Tim Hudak has recognized the financial burden that many families are under. His private members bill, Fairness for Families Act, will lighten this financial burden for many families.”
-David Quist, Executive Director, Institute of Marriage and Family Canada
“The NFCA would like to thank Tim Hudak for introducing Bill 88 into Queens Park. This is a major step towards a family tax fairness policy for Ontario families. Bill 88 is a progressive tax bill that will bring all working families on an equal economic level without discrimination. Bill 88 will give parents the freedom to raise their children the way they see fit and not be financially discriminated against.”
-Sara Landriault, President, National Family Childcare Association
“I spoke with countless Canadians, many of them Ontarians, about their desire to have childcare choices remain in families’ hands. But … what my fellow citizens repeatedly told me was that what they really wanted was income splitting. Young, old, left, right, single and double earning families alike are united in this view for two reasons - not only is it the fair thing to do, but it sends the strong message that families are the primary social and economic unit in our society…”
-Kate Tennier, Founder, Advocates for Childcare Choice
“While CFIB has not surveyed its members on an income-splitting scheme, total tax burden continues to be our members’ most pressing concern. Any efforts to reduce that burden would be welcome.”
-Satinder Chera, Director of Provincial Affairs, Canadian Federation of Independent Business
“The CTF applauds Tim Hudak for recognizing the challenges faced today by Ontario families. On average they pay 46% of their income in taxes. This is a large burden that needs to be reduced. While governments calculate benefits on a family basis they tax on an individual basis. This is a tax discrimination against the family which is addressed by income splitting. We appreciate all efforts to fix this inequity…”
-Kevin Gaudet, Ontario Director, Canadian Taxpayers’ Federation