Family Income Splitting | Pension Income Splitting

One of the tax breaks that Liberal government would not change that only benefit the rich higher income pension recipients is called “Pension Income Splitting”. This allows the rich pensioner to split up to half of their pension income with their lower-earning spouse. Even though, the lower-earning spouse will pay the taxes but will fall in lower tax brackets. This tax break cost Canadians about $2.2 billion per year as per parliamentary budget. Therefore, if canceling Family Income splitting makes the Canadian tax system fair, then why should the rich pensioners get a pass?


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