While these numbers are not up to date, they still are useful to illustrate how the tax system didn’t and still does not support the single income family.
Let’s start with some assumptions so that we can compare “apples to apples” as best as possible (yes I know I will miss some things, but let’s just start on a relatively level playing field).
- Let’s assume that the “family” income is around $100,000 (Cdn) a year (yes that is a lot of money)
- Assume that the family does NOT save any money in RRSP’s (that’s a safe call, since most of us don’t)
- Won’t make any comments about dependants and such, since they have no effect on the actual tax paid (only whether you receive
Family AllowanceChild Tax Credit cheques) - No union dues, carrying fees, medical costs, or such that would in some way affect (effect?) the final income numbers
- Everyone pays the maximum CPP and EI payments for the year (which is a penalty the duel income family must take).
- No I won’t talk about GST and PST or Tax Credits for these (I’d swear too much and get thrown off my host site most likely if I did).
- Thse folks live in ONTARIO (the good) just for discussion sake.
- All of these numbers are straight out of QUICKTAX (but you could easily figure it out using a tax form as well).
So keeping this in mind let us start with our number crunching.
Single Income “Family” (Two Spouses and some kids, but only 1 spouse earns a pay cheque)
Tax payable for Spouse who is “bread winner” in family:
| Tax Line description | Line# | Amount |
| Employment income (box 14 on all T4 Slips) | 101 | $100,000 |
| Total Net Income | 236 | $100,000 |
| Total Taxable Income | 260 | $100,000 |
| Net Federal Tax | 420 | $18313 |
| Provincial or Territorial Tax | 428 | $9,905 |
| Total Tax Payable | 485 | $28218 |
Tax payable for Spouse who stays at home is effectively ZERO.
Thus for a single income family an approximate tax level
would be: $28218.62
or about 28%
Tomorrow (or maybe Monday) how much does a dual income family pay with a family income of $100,000?
… and no one cares. I have more friends ask, “How can you live on one income?”, when they make TWICE what I make (and get to write off their kids’ summer camp as DAY CARE). Some days I think of running politically just on THIS platform.
I agree with your comments that the tax system in Canada severely discriminates against single-income families. And, I don’t believe it is going to change anytime soon. None of the political parties have this issue on their agenda. It is shameful economic discrimination.