Comments on: Summer Reprise: Canadian Government Hates Single Income Families (Final Analysis) http://www.canajunfinances.com/2009/07/15/summer-reprise-canadian-government-hates-single-income-families-final-analysis/ Personal Finances and Consumer Concerns, essays, stories, examples and how to articles with a distinctly Canadian Point of View Fri, 19 Mar 2010 18:56:53 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Beth http://www.canajunfinances.com/2009/07/15/summer-reprise-canadian-government-hates-single-income-families-final-analysis/comment-page-1/#comment-5441 Beth Sat, 18 Jul 2009 22:07:43 +0000 http://www.canajunfinances.com/?p=2795#comment-5441 Bigcajunman, I totally agree. I know a few couples where the fathers stayed home with the kids until they reached school age. They took on freelance work or teaching to stay active in their fields. That's what I'm aiming for too :) I don't have a spouse yet, so all I do is plan my own career so that I'll that flexibility. (Besides, I have to plan for the physical toll pregnancy and childbirth is going to have on my body). I'd love it if my future husband wants to stay home with the kids, and I hope he's thinking about that too. Bigcajunman, I totally agree. I know a few couples where the fathers stayed home with the kids until they reached school age. They took on freelance work or teaching to stay active in their fields. That’s what I’m aiming for too :)

I don’t have a spouse yet, so all I do is plan my own career so that I’ll that flexibility. (Besides, I have to plan for the physical toll pregnancy and childbirth is going to have on my body). I’d love it if my future husband wants to stay home with the kids, and I hope he’s thinking about that too.

]]> By: bigcajunman http://www.canajunfinances.com/2009/07/15/summer-reprise-canadian-government-hates-single-income-families-final-analysis/comment-page-1/#comment-5439 bigcajunman Sat, 18 Jul 2009 15:04:03 +0000 http://www.canajunfinances.com/?p=2795#comment-5439 Why do you assume that you must stay home with your child? Can't your spouse stay home? More men are staying home on paternity leave in Canada, and there is less stigma these days associated with it. Just another idea, if you think your career is that important then plan accordingly. Why do you assume that you must stay home with your child? Can’t your spouse stay home? More men are staying home on paternity leave in Canada, and there is less stigma these days associated with it. Just another idea, if you think your career is that important then plan accordingly.

]]> By: Beth http://www.canajunfinances.com/2009/07/15/summer-reprise-canadian-government-hates-single-income-families-final-analysis/comment-page-1/#comment-5438 Beth Sat, 18 Jul 2009 13:49:27 +0000 http://www.canajunfinances.com/?p=2795#comment-5438 I'm curious, those of you who said that one income is better have you thought about what happens when the second spouse does go back to work? In many careers, taking time off to raise kids is akin to career suicide or very major setbacks in advancement and earning power at the very least. The fact that women stay home with kids and lead longer lives leads to a higher percentage of women living in poverty in their senior years. I'm trying to structure my career so that I can have a part-time business while my kids are small just so I can "stay in the game". I know I'll be spending a lot on childcare even if it's just part time, but to me I think it will be worth it to not have to start from scratch career wise once my kids are in school. I’m curious, those of you who said that one income is better have you thought about what happens when the second spouse does go back to work? In many careers, taking time off to raise kids is akin to career suicide or very major setbacks in advancement and earning power at the very least.

The fact that women stay home with kids and lead longer lives leads to a higher percentage of women living in poverty in their senior years.

I’m trying to structure my career so that I can have a part-time business while my kids are small just so I can “stay in the game”. I know I’ll be spending a lot on childcare even if it’s just part time, but to me I think it will be worth it to not have to start from scratch career wise once my kids are in school.

]]> By: S. Whitton http://www.canajunfinances.com/2009/07/15/summer-reprise-canadian-government-hates-single-income-families-final-analysis/comment-page-1/#comment-5422 S. Whitton Thu, 16 Jul 2009 17:15:31 +0000 http://www.canajunfinances.com/?p=2795#comment-5422 Keep in mind the article was about taxes, and only taxes. What one family considers a luxury, another may consider a necesity for their circumstances. Equating having a stay-at-home parent as a luxury is an argument that can go on all day with no clear winner. Until the government offers tax credits for "luxury" things will never be fair. Keep in mind the article was about taxes, and only taxes. What one family considers a luxury, another may consider a necesity for their circumstances.
Equating having a stay-at-home parent as a luxury is an argument that can go on all day with no clear winner.
Until the government offers tax credits for “luxury” things will never be fair.

]]> By: Michelle http://www.canajunfinances.com/2009/07/15/summer-reprise-canadian-government-hates-single-income-families-final-analysis/comment-page-1/#comment-5421 Michelle Thu, 16 Jul 2009 12:30:45 +0000 http://www.canajunfinances.com/?p=2795#comment-5421 When we went for dual income to single things were very tight. My husband made $64k, we lived in BC at the time, had one car, had a little baby (so believe me, I wasn't comparison shopping - you get and get out as fast as you can!). Most of the moms I met at the time who were staying at home had all made similar sacrifices. We had also sacrificed my ENTIRE income of $33k (these comparisons never take that into account). Never the less, I don't regret it. I think it was best for my family and my kids (now 10 & 7) are very happy, well adjusted, and doing great in school, in spite of moving 4 times in 3 provinces. My husband thought it looked so good he quit his job to start his own business, and now he gets to do all kinds of stuff with the kids too! When we went for dual income to single things were very tight. My husband made $64k, we lived in BC at the time, had one car, had a little baby (so believe me, I wasn’t comparison shopping – you get and get out as fast as you can!). Most of the moms I met at the time who were staying at home had all made similar sacrifices. We had also sacrificed my ENTIRE income of $33k (these comparisons never take that into account).

Never the less, I don’t regret it. I think it was best for my family and my kids (now 10 & 7) are very happy, well adjusted, and doing great in school, in spite of moving 4 times in 3 provinces. My husband thought it looked so good he quit his job to start his own business, and now he gets to do all kinds of stuff with the kids too!

]]> By: Traciatim http://www.canajunfinances.com/2009/07/15/summer-reprise-canadian-government-hates-single-income-families-final-analysis/comment-page-1/#comment-5415 Traciatim Wed, 15 Jul 2009 15:11:50 +0000 http://www.canajunfinances.com/?p=2795#comment-5415 The trouble is that you are comparing a luxury of being able to live with one spouse taking care of the house, with a struggle of trying to compete to provide similar situations for their family while sacrificing quality of life. You also forget to take in to account that the dual income family will have to pay well over 8000 in child care in order for the second working spouse to work. Lets take two families that make 70K, a single income and dual income with 2 kids in Ontario. They will pay the max they can claim for child care, one toddler getting the CCTB/UUCB, and one in elementary who needs after school care. Scenario 1, 70K single income. Income Tax: -13146 CPP: -2119 EI: -732 CCTB: 1509 UUCB: 1200 Total Take Home = $56712 They can go to the library after school, worker spouse comes home to fresh meals because home spouse can comparison shop and buy fresh stuff every couple of days, and their kids grow up with a stable household because they aren't feeling like they are dragging the family down all the time being shuttled from babysitters to day cares to family members all the time. Scenario 2, 70K dual income Split 40600/29400 (42% of income by lower spouse, the last average I can recall reading). Child Care: -11000 (7000 full time, 4000 after school/summer). Income Tax: -7172 CPP: -3188 EI: -1211 CCTB: 1949 UUCB: 1200 Take Home Pay = $50578 Plus, depending on the circumstances, they may need to run two cars, sacrifice better accomadations, the working people may have to miss more time and concentrate less on work in the future because they are both too tired to give work 100%, they possibly eat much more instant and convenience food making their health suffer and possibly causing more sick time to be used. . . Plus their kids feel like they are an inconvenience rather than a valuable part of their family. The kids mom and dad won't be at the Christmas/Holiday pageant, because they have to work. Which would you rather be in? The only argument I can see is that the spousal credit should always equal the personal credit. It makes no sense to have the credit less just because you are a couple. I'm not sure if you can tell, but I just went from a dual income to a single income house due to a job loss and life suddenly got a LOT easier. My spouse wants to go back to work, but I set a salary limit to be above for it to make any sense. I would be willing to bet there would be far more single income households if people would sit down and go over their finances to figure out if working is really worth it for the lower income spouse. The trouble is that you are comparing a luxury of being able to live with one spouse taking care of the house, with a struggle of trying to compete to provide similar situations for their family while sacrificing quality of life.

You also forget to take in to account that the dual income family will have to pay well over 8000 in child care in order for the second working spouse to work.

Lets take two families that make 70K, a single income and dual income with 2 kids in Ontario. They will pay the max they can claim for child care, one toddler getting the CCTB/UUCB, and one in elementary who needs after school care.

Scenario 1, 70K single income.
Income Tax: -13146
CPP: -2119
EI: -732
CCTB: 1509
UUCB: 1200

Total Take Home = $56712

They can go to the library after school, worker spouse comes home to fresh meals because home spouse can comparison shop and buy fresh stuff every couple of days, and their kids grow up with a stable household because they aren’t feeling like they are dragging the family down all the time being shuttled from babysitters to day cares to family members all the time.

Scenario 2, 70K dual income Split 40600/29400 (42% of income by lower spouse, the last average I can recall reading).
Child Care: -11000 (7000 full time, 4000 after school/summer).
Income Tax: -7172
CPP: -3188
EI: -1211
CCTB: 1949
UUCB: 1200

Take Home Pay = $50578

Plus, depending on the circumstances, they may need to run two cars, sacrifice better accomadations, the working people may have to miss more time and concentrate less on work in the future because they are both too tired to give work 100%, they possibly eat much more instant and convenience food making their health suffer and possibly causing more sick time to be used. . . Plus their kids feel like they are an inconvenience rather than a valuable part of their family. The kids mom and dad won’t be at the Christmas/Holiday pageant, because they have to work.

Which would you rather be in?

The only argument I can see is that the spousal credit should always equal the personal credit. It makes no sense to have the credit less just because you are a couple.

I’m not sure if you can tell, but I just went from a dual income to a single income house due to a job loss and life suddenly got a LOT easier. My spouse wants to go back to work, but I set a salary limit to be above for it to make any sense. I would be willing to bet there would be far more single income households if people would sit down and go over their finances to figure out if working is really worth it for the lower income spouse.

]]>