Re: Paying taxes when you don't turn a profit - ah, of course.
What do you guys think of the income splitting proposal (Conservatives), and the
enhancements to CCP and new Secure Retirement Option (Liberals)? I'm not quite happy with either.
With income splitting, my issues are that it's to take effect in the 'far' future (2015?) and that it's to be limited to only couples with children under the age of 18. I know that there are some good reasons for the government to incentivize people to settle into couples and reproduce, but as a matter of fairness this should be applied to all households regardless of whether or not they have children.
The CCP changes - obviously we'll all be higher premiums, and for the GRO, my worries are that it could be underfunded and end up like Social Security in the U.S., and that if fiscal mismanagement or losses take place, as is always possible, the taxpayers will naturally be called on to make up the difference.
Now the benefits: Income splitting would chop a pretty significant amount off of a couple's taxes, no question about that. An enhanced CPP doesn't (as far as I know) suffer from not being sustainable, so it's not money we'll never see - unless you means-test out of getting it back. The Guaranteed Retirement Option isn't a bad idea for the exact reasons I was discussing with actuarial earlier - people would pretty much just check a box on a form once and the government would automatically start saving for their retirement. They could do the same at a bank and get better rates, but it appears that people don't often want to do that.