Income Splitting for Two-Parent Families: Who Gains, Who Doesn’t, and at What Cost?

A federal proposal to allow income splitting for two-parent families would create more inequalities in the tax system rather than less, and it is a flawed idea, according to a report released today by the C.D. Howe Institute. In Income Splitting for Two-Parent Families: Who Gains, Who Doesn’t, and at What Cost? Alexandre Laurin and eminent tax scholar Jonathan Rhys Kesselman assess the economic impacts of the proposed tax change and find it would create some winners and far more losers rather than promote equitable treatment of families.