Weekend Reading: Family Tax Cut Edition

Big news out of Ottawa this week as the Harper regime unveiled its long-awaited (and controversial) plan for family income-splitting.

The Conservatives announced that couples with children under 18 will be allowed to transfer up to $50,000 in income from the higher earner to the lower earner in the form of a non-refundable federal tax credit that’s capped at $2,000.

Other measures will be implemented starting in 2015.  The means-tested Child Tax Credit will be scrapped in favour of an enhanced Universal Child Care Benefit – one that will pay $160 per month for children under 6, and $60 per month for children aged 6-17.

Are you in favour of these new tax cuts?  Will they benefit you and your family?  Let us know in the comments.

This week’s recap:

Last Friday, Sandi Martin wrote about budgets, cash flow, and spending.

On Monday we asked 15 personal finance experts to share their thoughts on borrowing to invest.  Stay tuned for part-two of that series next week.

On Wednesday, Marie asked if a do-it-yourself will is ever appropriate.

Weekend Reading

PWL Capital’s Justin Bender launched a new blog called Canadian Portfolio Manager which is aimed at DIY investors and advisors.  It looks like a great resource for model portfolios, rate of return calculators, and a ton of market data.

Bell Media announced a new streaming service that will include access to HBO’s entire library of television shows, documentaries, and comedy specials.

The credit card industry is headed for some turmoil, according to this blog post.  That’s because federal Finance Minister Joe Oliver asked Visa and MasterCard to voluntarily lower its interchange fees or face the risk of regulation.

Rob Carrick explains why Canada needs to update its RRIF withdrawal rules.

John Heinzl answers a question from a reader: Should I bank on an all-bank portfolio?

A former Wall Street broker explains why he got fed up and left that part of the financial services industry.

Dan Bortolotti describes the advisor six-pack: a hodgepodge of mutual funds thrown together without a coherent strategy.

Michael James on Money revealed his asset allocation.

Ben Carlson had a smart post all about words and phrases that should be banished from finance.

Adam Mayers looks at the coming health benefits shock for retirees.

Financial Uproar says credit card hacking isn’t all it’s hacked up to be.

Sheryl Smolkin explained why using Aeroplan points didn’t add up for her.

Happy Halloween, everyone!

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9 Comments

  1. Robert on October 31, 2014 at 5:56 am

    The war on single people continues. It is a demented bias toward people that fit Harper’s definition of an acceptable family. It forces single parent families to subsidize 2 parent families. I raised my kids as a single parent and would not have benefited simply because my wife deserted the family. (The same can be said for the ridiculous income splitting for retirees. If you are fortunate enough to have a partner you are granted this morality bonus.)

  2. Mike Wong on October 31, 2014 at 6:26 am

    I am not for more tax cuts with our own money.
    Cutting the GST was a bad idea and it continues.

    Funding for more education should be the first priority, then building out the infrastructure and social welfare spending.

    Paying off the debt is another priority.

    Investing for the future is not tax cuts that starve off other programs for the building of the country.

    I wish they had a better plan for the country.

    Look at the US, if tax cuts were the answer they would win hands down.

  3. Michael James on October 31, 2014 at 7:56 am

    My kids are too old for me to get any of the new money. That’s OK, though. I can always save on taxes by not working any more.

  4. schultzter on October 31, 2014 at 7:57 am

    PWL Capital’s Research Department is a great resource. I hope their blog expands on that.

  5. Sheryl Smolkin on October 31, 2014 at 10:07 am

    Thanks for the mention Rob. Have a great weekend.

  6. Tawcan on October 31, 2014 at 11:26 am

    I don’t understand how the Conservatives can keep a balance budget with these tax cuts and added benefits. Seems to be it’s a vote grab move by them. I do, however, like the fact that we’ll be getting a little bit more money for our son.

  7. Justin Bender on October 31, 2014 at 3:41 pm

    Thank you for the mention, Robb. Hopefully Canadian investors and advisors will find the new blog useful.

  8. Sean Cooper, Financial Journalist on October 31, 2014 at 8:43 pm

    I agree with the late, great Jim Flaherty that income splitting is bad public policy. A tax policy that only benefits a small segment of the populatio is only designed to act as a wedge issue come the 2015 federal election. Don’t forget this is same the government that cut door-to-door mail delivery! I would have much rather seen a reduction in taxes at the lower marginal tax rates.

  9. KC on November 3, 2014 at 12:08 pm

    Once again, the single folks get hosed. If I was the PM, I’d be taking that surplus and making extra debt payments. THAT is how you would win my vote.

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