In Canada, if one agrees to pay someone else’s way in life, one gets to pay $7,500 less in income tax. I’m referring, of course, to the spousal deduction.
If one decides to make some people and pay their way, one gets to pay $7,500 less per person in income tax. The deduction for kids.
What’s the ethical basis for these deductions? If you’ve agreed to pay someone else’s way in life and therefore pay less income tax, who picks up the slack? Me! How is that fair?
Maybe we can answer that question if we first answer the question ‘Why are there any deductions at all?’ That is, why shouldn’t we all just pay a percentage of our total income, period?
Are the deductions corrections for other errors? University tuition is too high, so those who pay it get to deduct a certain amount on their income tax as compensation? Well, fix the high tuition! And in the case of spousal and dependent deductions, what error is being corrected?
Or are deductions a sort of social engineering? Is the spousal deduction meant to encourage men to have wives? Why? Why is it such a good thing to have, or to be, a ‘kept woman’? And is the species in danger of becoming extinct? Is that why we need to encourage people to make more people?