Canadian Personal Finance Blog

Glad to see I am causing folks to read and comment about things, keep those comments coming.

First, I boo boo’ed on the UCCB since that is only for folks with kids who are under the age of 6, so we will officially move Mary’s birthday to January 1 2002. Thank you for pointing that out David.

Second, no I am not including Daycare or After school care costs, since that is not really part of my argument (the costs of Daycare and such is for another day to argue (especially how folks in Quebec get $9/day daycare)). You can argue this makes my scenario very artificial, I agree, however the point I am trying to make is how the tax system does not support single income families.

Keep reading folks, and keep commenting. –C8j

So, John and Jane Q. Public both have successful careers at Generic Co. and are both pulling down the same salary, here is what Quicktax’s Tax Summary report says about how much tax they will owe this year.

If you click on this you can see the full size version of the image. The final income tax they both owe is $20,561,46 (in this specific scenario with the parameters that I have set, total tax for both John and Jane). Now to me that sounds like a whack load of money to pay, but surprisingly this is lower than what they would have paid a few years ago.

Remember these numbers come from Quicktax so if the math is wrong, don’t blame me.

Tomorrow, what if Jane wasn’t working, wouldn’t they pay about the same taxes if their family income was the same? In a word, No.