MP Anderson highlights tax cut benefits

Dear Ms. Green: Thank you for your open letter dated March 3rd, in which you requested more information about how every Canadian family will benefit from the recent changes in tax rates and family benefits.

Since taking office in 2006, our Government has cut taxes over 180 timesresulting in a net savings of $3,400 per year for the average Canadian family. The changes you refer to continue these efforts.

Reducing taxes for all Canadians requires taking decisive action on multiple tax fronts. This is why income splitting was not an isolated decision but was part of a package of tax relief and program increases that will benefit all families with minor children.

When taken as a package, the changes announced will provide Canadian families with an average of $1,140 in additional tax relief and benefits in 2015. For example, Universal Child Care Benefit has been increased and now provides $1,920 a year for each child under six, and $720 a year for children six to 17.

It is true that some families will benefit from the income splitting option more than others. This is because, prior to the changes, two families with the same household income could end up paying drastically different tax rates. This is unfair and resulted in some families carrying a disproportionate tax burden prior to the change. Allowing families with children to split their income corrects this inequity. Now families with the same household income will be taxed at the same rate.

Our government had earlier introduced income splitting for seniors and it has been very well received. The opposition parties are on the wrong side of both good policy and public opinion when they say they will revoke income splitting.

I trust this addresses your concerns and helps to clarify how every Canadian family with children benefits from the tax relief measures and increased benefits we have introduced.