Monday, February 19, 2007

GST Cut verses Income Splitting

Hi Everyone,

Sorry for the long hiatus. Spent a couple of weeks in Cuba and then found it hard to get back into a regular schedule.

My thoughts for today are concerned with a federal budget that has yet to be announced and which very well might propel us into a spring election.

According to economists and newspaper pundits, the Tories have very little room for making big, splashy commitments and the next GST cut (promised within 4 years) and income splitting would cost the treasury about 5 Billion (given past surpluses, I am not going to lose too much sleep over the lost revenue, the govt could use a cash diet).

My question to you is, which would you prefer?

From a tactical point of view, the Tories should go with the GST cut, because it was a promise made, and should be a promise kept. It effects everyone, and everyone will see it immediately.

From a selfish, personal point of view, income splitting would benefit my family more than the GST cut. We don't spend a great deal of money on large ticket items, and I factor the GST into the cost when I am looking to buy. However, my wife chooses to stay at home with the kids and while I appreciate the CCTB, to keep her in the lifestyle to which she has become accustomed, I find myself in some of the higher tax brackets.

What would you like to see? and why?


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