rabble blogs are the personal pages of some of Canada's most insightful progressive activists and commentators. All opinions belong to the writer; however, writers are expected to adhere to our guidelines. We welcome new bloggers -- contact us for details.

Tory income-splitting tax policy: It's about creating and preserving gender inequality

Kathleen Lahey

A fundamental purpose of the Harper Government's ideologically driven income-splitting tax scheme is to undermine women's equality, Queen's University tax law professor Kathleen Lahey told the Parkland Institute's annual fall conference yesterday.

That's a statement that may cause some readers to react with skepticism -- but if you're one of them, let me suggest it's because you haven’t really been paying attention.

Dr. Lahey told a plenary session of the conference how, back in 1982 when the Canadian Charter of Rights and Freedoms was adopted, women were almost full citizens of Canada. Almost.

But powerful neoliberal and social conservative forces have been pushing back against gender equality ever since through such agents as the Reform Party, the Canadian Alliance and most recently the Conservative Party of Canada under the leadership of Prime Minister Stephen Harper. Not to mention, of course, the scores of neoliberal think tanks" and lobby groups financed by deep-pocketed corporations to repeat Harperite talking points.

"While women were working so hard to get equal rights" -- and, in Canada, succeeding more than in most countries of the world -- "there was a rearguard action taking place," Lahey observed.

"From the moment those laws hit the books, social conservatives have been pushing back as hard as they can" -- and the reality is they have succeeded, continue to succeed and the result is there is real deterioration of gender equality in Canada today.

A key tactic in the Tory gender-inequality project, in Harper's characteristic incremental style, has been to use a large number of small tax measures to return wealth to where he and the social conservatives who back him believe it belongs -- the pockets of already well-off men.

The scheme works in two directions: Outright tax cuts for corporations and wealthy individuals, of which we’ve seen plenty, deprive civil society of the financial oxygen it needs to survive.

And while civil society suffers the death of a thousand cuts, scores of ideologically inspired tax breaks direct that money to places where it will encourage the kind of society the acolytes of Harperism want to build. And that's not a society, let it be understood clearly, that values equality between genders.

"Almost half of Canada’s remaining fiscal capacity (after tax cuts) was given away through these little tax termites," Lahey said. "The whole system is designed to be available only to people at the top of the income curve, and those are mostly men."

If the expensive income-splitting dodge diverts $2.7 billion from tax revenues in 2015, 88 per cent of that will end up in the pockets of men, 12 per cent in the pockets of women, and nothing in the pockets of single parents, who have no one with whom to split their income. Poor and moderate-income couples will get little or no advantage either if they're in the same tax bracket.

Conservatives, of course, spin this another way. They call it "putting money back in the pockets of families" and allowing "the real childcare experts -- Mom and Dad -- to decide how best to raise their kids." (Both quotes are from Conservative fund-raising letters sent to the party's supporters, and they make a lot of superficial sense to many Canadians who haven't bothered to count up all the beans.) And if there's no dad, I guess they just don't care.

The reality is, in Lahey's words, "very little of this money actually goes to the people who need it. … Forty per cent of women have income so low, they can't take advantage of a tax cut."

The Harper Government knows perfectly well how this will play out: Canadian so-cons have had the example of income-splitting tax measures in the United States to observe since 1948, and the results, said Lahey, has stopped millions of American women from achieving their full potential in order to protect their family's income-splitting benefits.

"It's a totally toxic tax measure, and it is the plan for Canada," she stated, and it is being adopted -- the propaganda notwithstanding -- for purely ideological reasons.

"It's being done as a marriage-promotion project. … It's being done to maintain a 'Christian home.'"

None of this is exactly news. Lahey has outlined her arguments in an excellent op-ed story in the Globe and Mail, which is well worth reading, and the consequences are well known to tax experts. Still, in the absence of much critical coverage in the mainstream media, it's always worth hearing the obvious stated clearly: The Harper Government is doing what it can to undermine gender equality in Canada and redistribute wealth upward.

If you're concerned about gender equality -- and as a father of daughters who may have to survive in the wretched neoliberal dystopia Harper longs to build, I sure as hell am -- you really shouldn't support Conservatives come voting day!

This post also appears on David Climenhaga's blog, Alberta Diary.

Thank you for reading this story…

More people are reading rabble.ca than ever and unlike many news organizations, we have never put up a paywall – at rabble we’ve always believed in making our reporting and analysis free to all, while striving to make it sustainable as well. Media isn’t free to produce. rabble’s total budget is likely less than what big corporate media spend on photocopying (we kid you not!) and we do not have any major foundation, sponsor or angel investor. Our main supporters are people and organizations -- like you. This is why we need your help. You are what keep us sustainable.

rabble.ca has staked its existence on you. We live or die on community support -- your support! We get hundreds of thousands of visitors and we believe in them. We believe in you. We believe people will put in what they can for the greater good. We call that sustainable.

So what is the easy answer for us? Depend on a community of visitors who care passionately about media that amplifies the voices of people struggling for change and justice. It really is that simple. When the people who visit rabble care enough to contribute a bit then it works for everyone.

And so we’re asking you if you could make a donation, right now, to help us carry forward on our mission. Make a donation today.

Comments

We welcome your comments! rabble.ca embraces a pro-human rights, pro-feminist, anti-racist, queer-positive, anti-imperialist and pro-labour stance, and encourages discussions which develop progressive thought. Our full comment policy can be found here. Learn more about Disqus on rabble.ca and your privacy here. Please keep in mind:

Do

  • Tell the truth and avoid rumours.
  • Add context and background.
  • Report typos and logical fallacies.
  • Be respectful.
  • Respect copyright - link to articles.
  • Stay focused. Bring in-depth commentary to our discussion forum, babble.

Don't

  • Use oppressive/offensive language.
  • Libel or defame.
  • Bully or troll.
  • Post spam.
  • Engage trolls. Flag suspect activity instead.