Picture if you will, two families living side by side in the same West Niagara neighbourhood. Both families are exactly alike in every way, earning the exact same income, but with one difference: one family has two parents working full-time, while the other family has one income earner and one stay-at-home spouse.

Does it sound fair to you that the family with a spouse who stays at home to raise the kids pays substantially more in income taxes each year?

In Ontario and across Canada, single earner families pay much higher income taxes than dual-earner families who make the same total income. For example, a typical Ontario family with one spouse earning $70,000 pays $14,165 in provincial and federal income taxes while a typical family with two spouses earning $35,000 each pay a combined $10,364, a difference of $3,801 or $316 per month. That is unfair.

During the spring session in the Legislature, I brought forward a private member’s bill – the Fairness for Families Act – to eliminate the provincial income tax penalty imposed on families who choose to have one spouse stay at home or work part time.

In the example above, the single earner family would be able to split their income equally between spouses at $35,000 each, qualify for a lower tax bracket, and therefore pay the equivalent provincial income taxes as the dual earner family.

Income splitting would also help formerly dual-income families who have been impacted by a recent job loss through difficult times by lowering their tax burden.

According to the Canadian Taxpayers’ Federation, 20 countries including France, Germany and the United States have addressed this tax penalty. The Harper Government has taken the first step in Canada by allowing for pension income splitting, but we need to extend this option for all married or common law couples.

Though the Fairness for Families Act had support of the PC Caucus and individual members of the NDP and Liberal parties, enough Liberal MPPs were whipped to vote against it to defeat it.

I still believe, however, that this is a fight worth pursuing and I will continue to champion the equal treatment of Ontario families whether both spouses earn income or if they choose to have a spouse stay at home or work part time.

I welcome any advice on my proposal and on income splitting. Please contact my constituency office by calling 905-563-1755 or emailing timhudak@niagare.net.