Income Splitting in Canada

Inequality by Design
January 28, 2014
613.43 KB26 pages

This study examines the cost and the distributional impact of three income splitting scenarios: pension income splitting; income splitting for families with children under 18, as the Conservatives have pledged; and income splitting for all families. The study finds that the impact of income splitting in all scenarios is very unequal and the lost revenue for Canadian governments would be substantial.