Sask. MP calls on Tories to proceed with income-splitting
Saskatoon-Wanuskewin MP Maurice Vellacott says government should keep promise
Saskatchewan Conservative MP Maurice Vellacott is calling on his party to keep its commitment on income splitting.
It was a major campaign promise made by the Conservatives in the 2011 election, but it has never been implemented.
Income splitting results in reduced overall taxes for a family when one spouse earns considerably more than the other.
The government said it would be introduced when the deficit was tamed, something that's expected next year. —
But recently, federal Finance Minister Jim Flaherty said he's not sure about the idea.
Critics say the change would cost the government billions in lost income tax and discourage women from returning to the workplace after having children.
The result is a reported division within the Conservative Party caucus about whether to stick to the promise. Some pundits have suggested the Tories are about to back away from it.
But in a statement, Vellacott said he still fully supports income-splitting. Families don't budget as individuals and shouldn't be taxed that way, he said.
"As Conservatives, we made a promise to introduce income splitting, and I expect that we should keep this pledge, even if it means placing an upper limit on this transfer to make it most meaningful to the middle class and those on lower incomes," Vellacott said in a news release.
Vellacott had previously said he will not run in the next election.