We continue to try to figure out how much a spouse is worth in the eyes of the CRA. So the Publics (Jane and her spouse John Q.) have a good life and an above average household income of $100,000.00 per year.
Single Income model:
- Income tax paid would be $27,661.98
- They would pay a total of $2640.00 in CPP and EI payments
- Final score around $30K in taxes and payments.
Dual Income model:
- Income tax paid would be $20,561.46 (paid by both)
- They would together pay $5280 in CPP and EI payments
- Final score around $26K in taxes and payments
Interesting so the gap for this family as laid out is about $4000.00 or so. Now this is after tax money, so the single income earner model would need to may about $7000 more gross income to be the same net income.Now I have had some very good comments from various readers (I am impressed that this has caused such discussion), commenting that I am not taking into consideration the high costs of day care and such. Those are good points, but remember that the dual income family also gets to write $7000 worth of that from their income, and no I am not saying it is a “wash” but that needs to be considered. There are other points as well that can be made, but it makes the argument quite complicated.
My conclusions and final comments how much my spouse is worth will be posted tomorrow.For those of you who agree or disagree, I open my forum to you, if you wish to write a rebuttal or supportive article, I am willing to post it (after reviewing it myself, it is my blog, after all). Leave a comment, I will contact you.