Some interesting digging by Canadian Press reporter Andy Blatchford has revealed the Harper government's own internal breakdown of who would get the benefit of the income splitting. It shows 68 per cent of the benefits — about two-thirds — will go to families that earn as much as $120,000 in 2015.
According to the government’s own figures, we are signing on to a measure that costs us $2.4 billion so the biggest benefits can go to families with incomes more than $233.000.
That’s a serious amount of money. Used wisely it could do a lot of good. Former Finance Minister Jim Flaherty knew that. And once he saw the faulty math he changed his mind about the Conservative promise. Does Finance Minister Joe Oliver not get it? Or is this is another instance of the government using our money to buy political capital - but this one is way more expensive than any ad campaign.
Most of the benefits of income splitting will go to Canadians who need it the least. According to an analysis done by Queen’s University Law School Professor Kathleen Lahey(link is external), the top 20% of families with incomes over $140,000 would get 43% of the estimated $2.4 billion a year, even with a $2000 cap on benefits. Men would get 87% of the additional income.
You can read more about the Income Splitting fiasco here.