FINANCIAL DISCRIMINATION OF SINGLES AND LONE PARENT POVERTY MASKED BY GASLIGHTING

FINANCIAL DISCRIMINATION OF SINGLES AND LONE PARENT POVERTY MASKED BY GASLIGHTING

(These thoughts are purely the blunt, no nonsense personal opinions of the author about financial fairness and discrimination and are not intended to provide personal or financial advice.)

This blog post is in response to a local newspaper opinion letter submitted by a reader who believes “singles only need small spaces and one tank of gas per month”.  This post was published in a local newspaper in shortened format as only so many words can be submitted for newspaper publication.

SHOCKING STATISTICS FOR PROVINCIAL INCOME SUPPORT PROGRAM RE INDIVIDUALS AND LONE PARENTS

Shocking statistics show that in one of the richest provinces (Alberta) there were in early 2014, 33,000 Alberta Income Support program (excluding AISH) recipients of all ages.  Alberta Income Support program in January, 2017, had 54,374 recipients and in January, 2018, 57,003 recipients.  Makeup of claimants in 2017 and 2018 include individuals 69%, lone-parent families 24%, couples with children 5%, and couples alone 3% (social-assistance-rates-continue-to-soar-despite-albertas-recovering-economy).  Totals do not say how many are turned away and do not include those who on verge of poverty.

GASLIGHTING MASKS INDIVIDUALS (SINGLES) AND LONE PARENT POVERTY

Reader comments on Alberta support program statistics gaslight by blaming NDP government and immigrants.  Local newspaper opinion letter submitted by a family gaslights as part of the family majority by using bias and financial illiteracy re singles finances to tell singles they only need small spaces and one tank of gas per month.   The letter implies families have to pay so much more than single retirees.  Sorry, singles and lone parents retirees are forced by married majority to pay more taxes because they can’t pension split and don’t have marital benefits privileging married and coupled persons with and without children.

So, apparently, while your children have their own bedrooms, it is okay for singles to live in spaces as small as 150 sq. ft. with only a microwave, bar fridge, bar sink, and no stove, bathtub, laundry or storage space.  And, apparently, as evidenced in Whistler, BC housing crisis it is okay for singles to earn a decent living, but have no place to live.  One person earning $2,800 after taxes has lived in a camper van for four years.  Styrofoam cutouts are wedged into the windows to keep out the cold. Or, in shared house a single bedroom was advertised for two female tenants at $780 per person.  Illegal short term rental greed has replaced housing designated for staff.

Singles have become invisible in DIY, real estate and housing TV programs.  Probably this is because singles are increasingly being charged more and more per square foot for their small spaces and are less able to afford home purchases.

One tank of gas per month doesn’t even deserve a response.

J-u-s-t  s-p-e-a-k  t-h-e  d-a-m-n  t-r-u-t-h!  Over 90% of Alberta Income Support recipients as minorities are singles and poor lone parent families!  Families gaslight by saying it is expensive to raise children covering only twenty to twenty five years.  Housing covering sixty to eighty years, especially rental, is biggest lifetime expense regardless of marital status or children.  House ownership is separating Canadians into ‘haves’ versus ‘have nots’.

MARKET BASKET MEASURE SHOWS IT COSTS INDIVIDUALS MORE TO LIVE THAN MARRIED OR COUPLED PERSONS WITHOUT CHILDREN

Conservatives, financially illiterate, gaslighters and married never talk about low income, equivalence-scales-in-relation-to-cost-of-living or cost of living scales like Market Basket Measure (MBM) (statcan).  Example:  if single person household has value of 1.0, lone parent, one child or two adult household has value of 1.4, one adult, two children 1.7 and two adult, two children 2.0.  It costs more for singles to live than couples without children.

Just one example of MBM not applied was the 2015 Federal Conservatives proposed targeted federal tax relief benefit for single senior to $20,360 ($1,697 per month) and senior couple $40,720 ($3,393 per month).  Using simple math, $1,000 rent and $400 food and white goods per month is barely covered for singles, but $1,000 rent and $800 food and white goods is amply covered for senior couples.   Application of MBM of 1.4 for couples would equal $28,504 ($2,375 per month), not $40,720.  Cost of living for couples is not twice that of singles. Trump has also given double tax relief for couples.

For 2018, net income limit is $75,910 for singles and $151,820 for couples. Applying MBM of 1.4 or $106,274 net income limit for couples ensures tax fairness.

Singles are told by married persons that they can always reduce costs by moving in with someone else.  However, this does not solve the problem of financial discrimination of singles being forced to pay more taxes.

MULTIPLE GOVERNMENT BENEFITS ARE GIVEN TO MARRIED OR COUPLED PERSONS WITH AND WITHOUT CHILDREN

Conservatives, who tout individual responsibility,  have implemented tax avoidance programs privileging upper middle class and wealthy married or coupled households with and without children (add link) like pension splitting, Tax Free Savings Accounts (TFSA) with no limits, Old Age Security (OAS) clawback targeting only top two percent, and tax loophole programs. They financially and socially discriminate against minority singles and poor households who generally do not have the income to take full advantage of these programs.  Wealthy never pay their fair share of taxes. The Canada Child Benefit does not take into account net worth and assets, so it privileges wealthy parents who have low incomes, paid for houses, and high net worth and assets who then retire early. These same benefits have been perpetuated by the Liberal Party because of fear of losing votes if tax fairness changes are made.

Married and coupled persons do not realize the financial power and privileging that has been given to them when they are able to apply benefits on top of benefits times two persons (family-tax-credits).  For example, it is shameful when married and coupled persons can get OAS, which is supposed to be part of the Canadian poverty reduction pillar, then take that money and max out their TFSAs while paying less taxes because they can pension split and not pay taxes on TFSA proceeds (TFSAs do not need to be included in income).

The local newspaper opinion letter on same day as above opinion letter thankfully recognizes widowed person, now homeless ‘single’ (doesn’t say she is age 65), who is begging for money because she can’t get on small town local social support 600 person waiting list.

Singles, including poor lone parent households, are not stupid and deserve to feel righteously angered.  (After all, they also have math skills since they went to same schools as their married/coupled counterparts).  Singles know as minority populations they are not respected in financial formulas to the same level as married or coupled households with and without children.

CONCLUSION

Personal responsibility with social justice imbalance can lead to selfishness and greed.  Personal responsibility with balanced social justice and financial formulas changes “me” to “we”. Less gaslighting and more financial and public policy formulas based on MBM, and including net worth and assets, on all benefits and taxation without political bias would ensure financial fairness for all Canadians.

(This blog is of a general nature about financial discrimination of individuals/singles.  It is not intended to provide personal or financial advice.) This is a WordPress blog designed by a hired individual.

POOR ALWAYS PLACED AT A DISADVANTAGE

POOR ALWAYS PLACED

(These thoughts are purely the blunt, no nonsense personal opinions of the author about financial fairness and discrimination and are not intended to provide personal or financial advice.)

The columnist’s opinion letter prompted the author to submit an opinion letter to a major local newspaper which was published.  Due to space and time constraints the last statement of the author’s opinion letter can be interpreted in several ways.  The conclusion discusses these interpretations.

COLUMNIST’S OPINION LETTER PUBLISHED IN MAJOR LOCAL NEWSPAPER

RE: Government hypocritical on minimum wage, Oct. 2. (hypocrisy)

‘What sort of person could possibly begrudge someone getting a raise when they only make 12 lousy bucks an hour?

Probably someone who’s been hanging onto the coattails of the deep thinkers over at the Fraser Institute, or maybe ingratiating themselves with those tall foreheads inhabiting the C.D. Howe playpen. Such folks talk as though the blood drained from their thin veins a long time since.

Nope, here in Calgary, on this glorious fall morning, some fine people will be starting work with an extra spring in their collective step, knowing a nice $1.40-an-hour raise is coming, with the minimum wage jacked up to $13.60, alongside the promise it’ll hit $15 in another year.

I wish them well and, honestly, a veritable pox on those who’d deny them otherwise.

Of course, some small-business owners might decide they can’t afford this new, higher wage, so instead, they’ll work extra unpaid shifts themselves and maybe cut some poor soul from the payroll altogether. No blame should be levied there, either. Walk a mile in those shoes.

Oh, then there are those big, international corporations – the McDonald’s and Amazons of this increasingly global and heartless world. The more the cost of labour goes up, then the more bottom-line reasons to invest in robots and automation. Such reactions are inevitable – on a worldwide scale, it’s why we don’t produce much of our electronic gadgets, clothes or food because someone, somewhere, does it much cheaper, and the price we’re willing to pay supersedes patriotism everytime and everywhere.

Countless economic studies – conducted, of course, by those who’ve never seen a minimum wage pay packet since mommy and daddy shelled out for that first go-round of college – have never successfully nailed the effect of such ordained raises on subsequent employment. Usually, the conclusions mirror the political viewpoint of the group paying for the study.

Let’s face it: any relevant data here in Calgary to be gleaned in the upcoming 12 months after this latest increase would be washed away in the wake of a jump to $70 in the price of a barrel of oil. There are too many factors involved, so politicians merrily fill the gap…..

…..Politicians love spouting one-sided rhetoric. Take Alberta’s NDP Labour Minister who’s pushing this minimum wage strategy.

“Through talking to economists, business people, low wage workers and other stakeholders, we’ve come to the decision all hard-working Albertans deserve enough to support themselves.”

Hypocrite is what I say to her and all the rest of the dreary clan on both the provincial and federal stage. Because if $13 bucks an hour is not a living wage – and I wouldn’t argue otherwise – then why do these people steal from those poor souls making such a pittance?

They call it taxation. On the federal level, you start paying tax at about $12,000 a year. So, assuming you make a paltry $13 an hour and work 40 each week, your annual income is about $27,000 a year. Oh yes, Ottawa wants its sweet pound of that sad flesh.

Now the NDP Labour Minister and her saintly crew aren’t quite as grasping, to be fair, but once $15 an hour is reached, then the yearly sum will be over $30,000 and a third will be subject to provincial income tax.

So what sort of person gets up on a platform with flunkies to the right and hangers-on to the left and proceeds to lecture everyone about how the lower paid need a living wage and then takes part of such an increase and pockets it themselves? After all, where does a politician’s salary come from if not from tax revenue?

What sort of person? A politician, that’s who.’

BLOG AUTHOR’S OPINION LETTER PUBLISHED IN A MAJOR LOCAL NEWSPAPER

The columnist calls the NDP Labour Minister hypocritical for pushing the minimum wage strategy.  He states government through taxation steal from those poor souls making such a pittance.

Fact check:  when the almighty Alberta Conservatives (financial-discrimination-based-on-minimum-wage-controversy) brought in the flat income tax, they raised the provincial tax from 8% to 10% for the lowest income level.  The poor never had an Alberta Advantage.

Fact check:  those with low lifetime income will have a pittance of CPP pension retirement pillar (canada-pension-plan) because CPP contributions are based on wage levels.

Politicians, corporations and the wealthy always win because they pull the financial purse strings.

CONCLUSION

Because of time and space constraints the last statement  ‘Politicians, corporations and the wealthy always win because they pull the financial purse strings’ would likely leave the reader thinking this blog author was agreeing with the columnist regarding taxation, minimum wage, and NDP hypocrisy.  The columnist fails to mention the Alberta NDP also replaced the Conservative Party flat tax with a progressive tax system while increasing the minimum wage.

It is the opinion of this author that the Alberta Conservative Party when implementing the flat tax placed low income persons at a financial disadvantage while benefitting the wealthy more.  The Alberta NDP has, in fact, done the right thing by replacing the 10% flat tax with a progressive tax and at the same time increasing the minimum wage incrementally to $15 per hour.  The poor will receive an increase in income (impact-on-cpp-enhancements) at same time the wealthy will pay more tax.  By increasing the minimum wage for the poor and tax for the wealthy, the unfair financial spread between the two groups is narrowed.

ALBERTA PROGRESSIVE TAX  2017 IMPLEMENTED BY ALBERTA NDP PARTY

  • First $126,625 10%
  • >$126,625 to $151,950 12%
  • >$151,950 to $202,600 13%
  • >$202,600 up to $303,900 14%
  • >$303,900 15%

CANADIAN FEDERAL PROGRESSIVE TAX 2017

  • 15% on the first $45,916 of taxable income, +
  • 20.5% on the next $45,915 of taxable income (on the portion of taxable income over $45,916 up to $91,831), +
  • 26% on the next $50,522 of taxable income (on the portion of taxable income over $91,831 up to $142,353), +
  • 29% on the next $60,447 of taxable income (on the portion of taxable income over $142,353 up to $202,800), +
  • 33% of taxable income over $202,800

(This blog is of a general nature about financial discrimination of individuals/singles.  It is not intended to provide personal or financial advice.)

RESPONSE TO CONSERVATIVE, PROGRESSIVE THOUGHT OPINION LETTERS

RESPONSE TO CONSERVATIVE, PROGRESSIVE THOUGHT OPINION LETTERS

(These thoughts are purely the blunt, no nonsense personal opinions of the author about financial fairness and discrimination and are not intended to provide personal or financial advice.)

The following post is in reply to two response letters to first August 2, 2017 (why-conservatives-and-progressives-think-the-way-they-think) letter published in a local newspaper .  The two response letters appear at the end of this blog post.  This reply letter was published in local newspaper in abbreviated format on August 16, 2017.

BLOG AUTHOR’S RESPONSE LETTER-August 16,2017

Two response letters on blog author’s August 2, 2017 letter on conservative versus progressive thought only perpetuates bafflegab where imbalance between the two results in wealthy conservative types or anarchists ruling the universe.

One example of inequality of Canadian values is housing.  One condo development in housing complex includes 1 bed, 1 bath, 1 patio 552 sq. ft. micro-condo with starting price of $299,900 or $543 per sq. ft.  Three bed, 2.5 bath, 2 patios, 2 and 3 story 1830 sq. ft. condos in same complex are priced from $649,900 to $749,900 or $355 to $409 per sq. ft.  Ultra-deluxe model master bedroom suite covers entire third 600 sq. ft. floor. Third bedroom is bigger than total square footage of $299,900 condo and sells for $150 to $200 less per square foot for two-thirds more space.  Where is the critical thinking of ripple effects where owners (most likely to be singles) of micro-condos have to proportionately pay more house taxes, education taxes, mortgage interest, insurance and real estate fees on less house and likely less take home pay for their biggest lifetime expense?

Vancouver 100-square-foot apartments rent for $570 a month (again most likely to be occupied by singles).  Renters in the 50 units share 11 bathrooms and laundry facilities over the four floors (approximately 12 units and 3 bathrooms per floor)..

Which of you conservatives who spout family values as a personal issue believes your daughter should go traipsing outside of her apartment to use bathroom in middle of the night?  Which of you believes it is humane to stick anyone into a 100 square foot or smaller units (90 square foot units in Vancouver) plus charge excessive rents?   Who makes the decisions behind loan-shark or pay day loan type pricing where financial targeting of the most vulnerable occurs?  It is private enterprise, land developers and cities (government) that make these decisions, not unions.  Where does conservative bafflegab of neighbor helping neighbor, personal discipline, caring, responsibility and respect as stated in one of the letters fit into these decisions?

Free market enterprise and private businesses under the guise of ‘it is what the market can bear’ purposefully ‘rob’ from the poor to pay themselves and to ensure Wall Street ideology is maintained, used and controlled by lobbyists and wealthy who benefit most from Wall Street.  The act of making disadvantaged pay more for less housing and reducing apartments to the size of jail cells (as just one example) (empty-house-speculator-syndrome) has now normalized these scenarios to where it becomes acceptable to do this.  It becomes acceptable to first make singles and poor families pay more and then to (or at same time) offer them charity when there is nothing left for private enterprise to financially extract from them. The charity logic offered in one of the letters completely turns upside down the financial principles where everyone should be able to live on their incomes first and then charity kicks when these incomes fail.

Families (parents), governments, society, corporations, businesses to date have failed to provide support and responsibility that is needed to ensure all Canadian citizens are able to financially take care of themselves without financial parental aid, inheritances of wealthy parents and without bias of gender, race, marital status or income level.  Many Canadians are fed up with the infighting of politicians and the Trumpian corporate and family greed of the wealthy where wealthy always pay less and get more and never pay their fair share.

There are only so many words one can submit for opinion letters so there was no space to mention moderate or balanced positions.  The original newspaper letter was expanded in blog post by stating:  “It also should be said that extremes on either side whether conservative or progressive can have dire consequences.  Far right conservatism can lead to authoritarian governance and far left progressiveness can lead to communism type governance where freedoms are taken away under guise of all persons are equal.  It also is wrong for governments to hand out tax credits without looking at assets and wealth so that wealthy get tax credits or financial loopholes they don’t need (tax free savings accounts with no limits, OAS Clawbacks that don’t work, and pension income splitting implemented by the Conservatives and perpetuated by the Liberals selective-democratic-socialism).  It is all about balance!”  Where is the balance?

You want me to get to know you as a conservative.  How about getting to know me as a person without making me pay more while getting less?

(end of blog post)

 

READER LETTER #1-August 9, 2017

This is written in response to August 2 letter.  Initially I was with the contributor about how conservatives tend to lean towards the stern father archetype and progressives towards the nurturing mother archetype.  But almost right away the writer does not lay out the positions and instead appeals to emotion as opposed to the intellect.

Conservatives want structure and order so they tend to be wary of rapid change and prefer it to happen slowly.  Progressives are more creative and prefer rapid change as a lack of change causes them to fear society is stagnating.  The extreme of these positions is totalitarianism and anarchy respectively, so in a healthy democracy it is not one or the other, but a combination of the two.

Yet the writer does not make this point and instead goes on about how compassionate progressives are, but you have to look at the words carefully.  Using the government to affect change is not compassionate, you are merely using the cudgel of the state to force people to form to your ideology.  There is no agreement no consensus, merely coercion.

At the end of the day, you have to ask what is the role of the government?  Are they there to  provide a framework to engage in mutual cooperation with their fellow human being or is the government there to regulate the lives of their subjects?

READER LETTER #2-August 9, 2017

The writer of August 2 letter has no idea how conservatives think.  Nearly everything you expound in your letter (including from Professor George Lakoff) is pure drivel. Perhaps you should take some time to really understand what conservatives hold to. Here is just a few examples of what conservatives believe in:

Wealth is created through personal initiative, ingenuity, risk taking and sacrifice, not governments.  In fact almost of of these attributes are either absent in government or discouraged (particularly in public service unions).

Great strides in most facets of our society, industry, medicine, technology and science have not come as a result of government initiatives but individual and private pursuits. Think Microsoft, resource development, telecommunications, transportation, agriculture and the internet.

Conservatives believe the free enterprise marketplace promotes diversity, rewards achievement and hard work and fosters the widest choice of ideas.  On the other hand big government represents monopoly, increasing regulations, and the narrowing of ideas and choice.  It often disparages success in private life and business and its very mantra is to force compliance and uniformity.

Conservatives consider big government as wasteful and often corrupt since career politicians have little regard or understanding of the hard work and sacrifice necessary to create wealth and then seek to confiscate and distribute more of it to get personal credit, secure votes and retain power.  Conservatives believe when they build something through hard work, sacrifice and ingenuity, it not only helps their family but the community as well through jobs, taxes and other contributions.  Conservatives know that fair pay retains valuable employees, but for a business to remain viable this has to be balanced with maintaining competitive prices and services to the public.

Conservatives believe true charity and caring towards others is a personal  issue. Unless it comes from the heart and is voluntary it is not genuine.  Using government to take more from some and create entitlements has nothing to  do with empathy, caring or being charitable.  Bureaucracies are incapable of caring.  Genuine charity and and caring only happens with neighbor helping neighbor directly person to person or collectively through voluntary charities and service organizations.  Conservatives understand that government safety nets are needed at critical times, but when they become entrenched and permanent they lead to dependency and undermines personal initiative and self-fulfillment, and so often politicians cannot resist the temptation to use such programs to garner more power, control and votes.

Conservatives believe values are taught in the family not through government programs or policies.  Personal discipline, caring, responsibility and respect must start in the home.  Conservatives do not believe that society’s moral values and conscience derives from government and therefore social engineering or social agendas should not be imposed on anyone by the government.

Please forget your perceived misguided views of conservatives and get to know one.

(This blog is of a general nature about financial discrimination of individuals/singles.  It is not intended to provide personal or financial advice.)

CANADA CHILD BENEFIT PROGRAM SHOWS FINANCIAL DISCRIMINATION AT ITS BEST

CANADA CHILD BENEFIT PROGRAM SHOWS FINANCIAL DISCRIMINATION AT ITS BEST

(These thoughts are purely the blunt, no nonsense personal opinions of the author and are not intended to provide personal or financial advice). 

(boutique-tax-credits-pushing-singles-into-poverty)

From CBC News-”New Canada Child Benefit program payments” July 20, 2016 (cbc) – Analysis of new Liberal Canada Child Benefit program and old Conservative UCCB program

The old Universal Child Care Benefit or UCCB (Conservative) provided $160 per child per month for children under six and $60 per month for children aged six to 17. That money was paid out to families regardless of income level.  The Conservative philosophy was that there should be some component of assistance for families that was universal.  However, this benefit was to be included as income and required payment of taxes.

Conservative universal approach could be viewed as all families should receive some component of assistance.  Just because they make a lot of money they should not be penalized, they should not be losing out and not getting any government benefits,  (Note: only for families, ever singles don’t matter).

The new Liberal program Canada Child Benefit (CCB) begins this month and combines the CCTB and UCCB into one payment that is entirely income tested up to $190,000 of income. The new payment is also tax-free making it more expensive than the UCCB.   Less than $30,000 in net annual household income generates benefit $6,500 for each child under six and $5,400 for children aged six through 17 tax free. 300,000 fewer children would live in poverty in 2016-17 compared with 2014-15.  The Liberals also reduced the tax rate from 22.5 per cent to 20 per cent for middle-class Canadians earning between $44,700 and $89,401 a year.  The Liberal (Trudeau) approach is that these benefits should be based on income testing.  Wealthier families can carry more of the load…they don’t need additional government handouts.

Since provinces also provide some child benefits, there was concern that provinces would clawback CCB from children on social assistance.  So far eight provinces has indicated they will not clawback CCB.

Illustration provided shows Ava Williams as a Toronto social worker with a net income of about $30,000, who lives in community housing. As a single mother of four children between the ages of six and 17, she says the new program will boost her old annual federal benefit payment by about $6,000 per year with added benefit of the new payment being tax free.  Something does not add up for the totals given..  One wonders if she means an additional $6,000 to what she received in 2015.  Assuming her net income is under $30,000 and her children all under the age of 18, it appears she will receive somewhere between $21,000 and $26,000 in child benefits, for a total net income between $51,000 and $56,000 all tax free.  This is in additional to subsidized housing and other possible federal and provincial benefits such as GST/HST credits with no clawback of the benefits..

An example of additional benefits received on a provincial basis with no clawback is Alberta.  In Alberta the non taxable child benefits are applied to working families with children under 18 and a net income starting at $25,500 with phasing out up to less than $41,220 per year.  Total annual maximum benefits for one child could be up $1,863, two children $3,107, three children $4,073, and four children $4,762.  Ava if she lived in Alberta with four children could receive total tax free federal and provincial child benefits of approximately $55,762 plus subsidized housing ($30,000 net income $21,000 CCB and $4,762 Alberta child credits). (There is no clarification on her marital status, which should not matter, but many readers wanted to know where the father was).

SYNOPSIS OF APPROXIMATELY 2500 READER COMMENTS FROM TWO NEWS ARTICLES

Approximately 2500 reader comments from two news articles were reviewed.(not number of readers, as some some readers comment many times)  The majority of comments were classified into the following major categories:

-Negative comments (most were negative)

-Not happy with amounts received between new Liberal and old Conservative benefits or  it is not enough

-Positive comments (very few)

-Bashing of political parties (Liberals versus Conservatives)

-Worried about future debt generated by benefits

-Many comments bashing Ava and where is the father of these children

-Other programs would be more beneficial than the child benefit program

-Program will be abused

-Benefits given for children but seniors and disabled receive much less

-Singles feel they have been left out of process and families of all types bash singles

-Divorce and death of one parent as well as other causes have impact on poverty

-Child benefits not only on federal level, but also provincial level

-In addition to benefits, should also be teaching budgeting and financial responsibility

-Immigrants

-Education

-Advantages of Child Benefits

-Benefit programs – have lots of other programs in addition to child benefit

-Eighteen years a long time for benefits

-Misconceptions about what is benefit versus welfare

-In addition to benefits, income taxes also cut for middle class

-Net worth and assets

Because of the length of the post, only issues regarding ‘Singles’ and ‘Net Worth and Assets’ will be discussed here.  Other categories will appear at the end of the post for those who wish to review all other categories in their entirety.

Reader comments regarding SINGLES

Single response-We’re sending cheques to families with household incomes up to $190,000/year yet there’s nothing for the 30% of single female seniors living in poverty. There’s a number of programs for single female seniors. I’m sure though that you and I would agree that it’s not enough.

Reader response-For all you single people out there, if you want to get tax free money , you better get married and start having kids because that is the only way you will get a tax shelter.

Single response – Nobody ever wants to help single people with no kids. Ever occur to you that I have no kids because I am responsible and do not want to bring kids into a life of poverty?

Reader response –  According to the left if you are single and no kids you need no help. You are well off and should pay more taxes.

Reader response -or you are selfish and don’t want to spend money on anyone but yourself.

Reader response – Don’t worry, that ‘right person’ is out there somewhere.

Reader Response -Yet other people’s kids will be the ones to take care of you when you are elderly. Don’t you think that’s worth a little bit of investment?

Single response – If the govt had money to throw away they could have reduced the tax rate for all of us, not just those who think they are poor because they gave birth to 4 kids.. Single people get NOTHING, just pay up more.

Reader response – We don’t have another human depending on us for life and those who have taken that responsibility deserve the help managing the full time obligation.

Reader response – I doubt that that is what he meant at all. A sense of responsibility is not selfishness.  Having kids is one of the most important things you’ll ever do. Granted, you cannot anticipate every life outcome, but generally speaking a responsible adult has an idea of their finances, and where they expect their finances to be in future. Most adults can actually budget their grocery store purchases – I believe they can budget the price of a child.   And having babies is not a right. Nobody should be under any obligation to financially support a stranger’s kids.

Reader response – You should be asking yourself why you need help if you’re single with no kids.

Reader response -And second, it’s not to say that single people with no kids can’t or shouldn’t receive support, it’s just that why would you need support for being single or having no kids? If you’re also elderly, or disabled, sick or unemployed sure, but being single and having no kids isn’t making it harder for us to live reasonably.

Single response – Hey, maybe all the poor single people – the disabled, etc., will simply die off and make room for all the government-supported kids.

Single response – as a childless middle aged man I am sick of paying for everybody’s kids, especially the Harper garbage boutique tax credits for hockey and ballet school.

Reader response – More likely you don’t get along with women very well or can’t find someone that will have your kid. Ever occur to you that poor kids may not necessarily have been born that way and that layoffs and economical hits create poor kids? That divorce also creates poor kids. Death of a spouse creates poor kids. You can be a millionaire and bring kids into the world and then have your investments tank the next day and you’re poor.

Reader response – If you are single your costs are much, much lower than if you have kids. Your contribution to the economy is also lower. When I go out to dinner my contribution is 5 times what a single person will bring to a restaurant but I still only need one table. This creates jobs as well. My kids go to swimming lessons (jobs and economic boost), they take the bus (jobs and economic boost), eat food and wear clothes and you name it. Grow up.

Reader Response – Single people do not pay more in taxes, that is a lie.

Single response – they certainly don’t get all the freebies (singles)

Reader response – I don’t think it’s that single people with no kids expect support, it’s simply that they perhaps don’t understand why people with kids should get rewarded with their tax money for having babies.

Reader response– Everyone at some point has paid taxes, not just single people. To say that only “single” taxpayers are funding tax benefit programs is hogwash.

Single responseSingle and no kids myself, in my early 50s, barely able to keep a roof over my head even with a full-time job and living frugally. Where’s *my* handout/monthly allowance from the gov’t?

ANALYSIS OF COMMENTS REGARDING SINGLES

It is clear that families with children (and even some singles) are financially illiterate and have no understanding of what it costs a single person to live.  Living Wage for Guelph and Wellington (2013 living wage of $15.95 per hour), a bare bones program to get low income and working poor families and singles off the street, allows a calculated living wage income for single person of $25,099 with no vehicle, food $279, transit and taxi $221 (includes one meal eating out per month).  (In 2015, the living wage for Guelph and Wellington has been set at $16.50 per hour). Note, this is not Vancouver, Toronto or Calgary where living costs are much higher.

Singles get no benefits except in abject poverty.  In both Liberal and Conservative programs, families with children (including single parents) get the benefits while ever singles and divorced persons without children get nothing.

Singles pay more.  Yes, ‘singles pay more taxes’ is a false statement.  Truth is that singles, person to person, pay same taxes, but get less benefits.  From the time they are married until one spouse is deceased, married or coupled families with children will likely have received shower, wedding, baby gifts, possibly maternity/paternity leave benefits, child benefits times number of children, TFSA benefits times two, reduced taxes, pension-splitting,  possible survivor pension benefits, and then want to retire before age 65.  In certain cases some of these families will not have paid a full year of taxes.  Single parents will receive child benefits and possible other benefits as well.  When all the benefits that families with children receive are taken into consideration, ever singles and early divorced persons with no children do pay more.

-There is a the perception by families that a reason to have children is that they will take care of future generations.  Financial responsibility implies that everyone including families should be financially paying for and taking care of themselves.  Future generations do not deserve to have heavy tax burdens placed on them to finance this generation and future generations of parents and children.  Likewise, financial responsibility implies that children do not deserve huge inheritances, while singles have a much more difficult time achieving same standard of living and saving for retirement as families with children.

Reader Comments regarding NET WORTH AND ASSETS

Comment-Liberals are so dumb that they don’t even know that the measure of true wealth is NOT income but net worth.  Are they so stupid to think that a lot of your neighbors, who declare zero income (and I know a lot of them) but can afford Jaguars and Bentleys and multi-million dollar homes really are poor? My wife and I are middle class folks, who live in a modest townhouse in Vancouver who won’t qualify for this now because we “make” too much. Sorry, Justin Trudeau, but 150k a year in Vancouver won’t get you very far.

Comment-if you only make $30,000.00 a year, maybe stop after the second child. Kids are expensive.  “According to MoneySense.ca, the average cost of raising a child to age 18 is a whopping $243,660. Break down that number, and that’s $12,825 per child, per year — or $1,070 per month. And that’s before you send them off to university.”

Comment – Take my numbers for example:   Property tax in Oakville Ontario is very high. I live in a 3000 sq/ft house on a tiny 90×90 lot and property tax is $12,000 a year.  Food cost for a family of 3 is about $15,000 a year, Utilities is $9000, Gas/Car/Insurance (2 cars) is $13000, Clothing/Phone/Living Expenses $8000.  I am only listing off the big expenses. Not including a lot of the little things. That comes to $57,000 a year. Hardly enough to live.

Reader Response to above-That sounds more like someone living beyond their means. And taxpayers are expected to step in and assist families like yours who have a more luxurious lifestyle than most could even dream of.   If you mean 3 kids, maybe, but 3 people, well, then you want too much. A family of 3 in a 3,000 sq. ft house? $300 in groceries a week for for 3 people? Did you know your taxes would be that high before you bought the house? If so, then you brought that on yourself.

ANALYSIS OF COMMENT REGARDING NET WORTH AND ASSETS

-Sense of entitlement.  It is absurd how the wealthy and rich families believe they are entitled to everything (3,000 square foot house)..

-Net worth and Assets.   None of these benefit plans include elimination with high net worth and assets, so again, the wealthy and rich families are receiving benefits they do not deserve.  One of our last posts (see link at top of page) showed how families with considerable assets ($500,000), one spouse working and four children under age of six would receive considerable benefits while never paying a full year of tax if they retired at the age of 60 when their youngest child turned 18.

-Middle-class families with higher income levels for child benefit program complain they don’t receive same level of benefits.  Yet they refuse to acknowledge that they are the ones who would also receive the reduced tax rate from 22.5 per cent to 20 per cent for middle-class Canadians earning between $44,700 and $89,401 a year.

CONCLUSION

It is completely obscene how governments and politicians can implement programs that do not look at net worth and assets.  Families units (including singles) with high net worth and assets and low (of any kind) income do not deserve to get child benefits and other wealth-creating benefits and programs.

It is also financially discriminatory when governments and politicians only include certain family units in their financial formulas.   In Canada, family units with children benefit most while ever singles and early divorced persons without children get nothing.  In the USA, Bernie Sanders has managed to accomplish some wonderful things for financial fairness.  However, even some of his accomplishments agreed to by Hillary Clinton again target only certain family units, that is those with children (free college/university for families with incomes $125,000 or less and paid parental family and medical leave).  Most politicians, whether right or left leaning, only talk about families, with most benefits given only to families.  Singles are never mentioned let alone included in financial discussions and formulas.  What if singles want to go to college/university to get a better wage?  Why are they are not included?

Many of the reader comments correctly identify divorce and death of a spouse as having a big financial  impact on family units.  However, it is also irresponsible for family units to not have life insurance to cover these life circumstances.  Life insurance for spousal death should be mandatory, just like car and house insurance,  and should be ample enough to cover big ticket items like mortgages.  Maybe divorce insurance should also be implemented and made compulsory so that ever singles are not forced to support divorced family units.

For many years there have been great universal government programs in place like public school education, and health care.  For financial fairness, absurd programs like the child benefit programs need to be replaced with universal day care, government paid for college and university education (at least first couple of years of university) and affordable housing (should be available to all types of family units).Then, if wealthy families want to send their privileged children to elite private schools, day care and university, they can spend their own money to do so.

Benefit programs like income splitting and pension splitting under Conservatives are bad policy as they discriminate against singles, and the  widowed and divorced (and spouses earning equal incomes).   Benefit programs should focus on the poor with inclusion of net worth and asset assessments  in the financial formulas.

Governments, politicians, and families need to become financially educated on what it costs ever singles and early divorced persons without children to live.  All Canadian citizens deserve equal financial dignity and respect regardless of the type of family unit they are in.

Once children become ever single and early divorced without children adults, they should not become invisible and made to feel like they are no longer financially important to society.  All lives matter including ever singles and early divorced without children adults.

Additional Reader Comments:  click on link below:

CANADACHILDBENEFITSCOMMENTS2 (1)

(This blog is of a general nature about financial discrimination of individuals/singles.  It is not intended to provide personal or financial advice).

REWARD PROGRAMS BENEFIT MARRIED/COUPLED PERSONS AND FAMILIES MORE THAN SINGLES

REWARD PROGRAMS BENEFIT MARRIED/COUPLED PERSONS AND FAMILIES MORE THAN SINGLES

These thoughts are purely the blunt, no nonsense personal opinions of the author and are not intended to provide personal or financial advice.

In the last post money programs such as the Alaska Permanent Fund Dividend program was discussed on how these programs benefit married/coupled persons and families.

This post discusses ‘freebie’ programs like fuel discounts, and giveaways like glassware, etc.  Safeway Canada in Alberta will be used as the company of choice in the examples outlined here (note:  reward programs may vary from province to province).  A family of four will be compared to a single person’s grocery budget.  For ease of comparison a family grocery budget of $840 a month or $210 per week will be used and for a single person $200 a month or $50 per week (remember, previous reader opinion letters have stated singles should be able to live on  $200 a month for groceries /reader-opinion-letters/).  For ease of comparison a vehicle with 100 litre fuel capacity will be used for both family units and singles, even though it is recognized families are more likely to have vehicles with larger fuel capacity than singles.

(Caveat:  food budgets are dependent on region, what is included in food budget and the age of the children.  Some regions have very expensive food costs, some budgets include paper and cleaning products, and food budgets will increase as children get older.)

Present Safeway ‘freebie’ programs running at the present time include:

  • Fuel Spend $35, get 5 cents off per litre
    • Spend $70, get 6 cents off per litre
    • Spend $105, get 7 cents off per litre
    • Spend $210, get 10 cents off per litre
  • Air Miles Points program –  Collect 95 cash miles – get $10 off grocery purchase (for comparison here only the coupon for ‘spend $100, get 100 air miles’ once per month will be used.  Additional air miles for buying certain products will not be used as it would be too difficult to calculate).
  • Glassware (Spiegelau) program – collect stamps from Oct 30, 2015 to March 3, 2016.  For every $10 spent in groceries, one stamp would be received at the checkout.  For every 50 stamps collected, purchaser would be eligible for one pair of glasses (for example, white wine, red wine glasses, etc.).  Safeway retail price stated in brochure is $39.99 for a pair of glasses.

COMPARISON

Fuel – For comparison purposes here, it will be assumed that families will spend $210 per week on groceries and, therefore, will receive 10 cents off per litre of gas.  For a vehicle with 100 litre fuel capacity requiring a complete refuel, the fuel discount would be $10 times four weeks for a total of $40 per month for a family and $5 time 4 or $20 a month for a single.  The total discount for four months for a family would be $160 for a family and $80 for a single; therefore, totals of $160 and $80 will be entered on chart.

Air Miles – If coupon ‘spend $100, get 100 air miles’ is used once per month families would be able to get a discount of approximately $40 on groceries (for every 95 Air Miles get $10 off) for four months, while singles would not be able to use this coupon as they have not spent $100 to get 100 air miles points.  On chart $40 will be entered for families and $0 will be entered for singles.

Glassware Rewards – Groceries by family at $840 per month times four months equals $3360.   This amount divided by $10 equals 336 stamps divided by 50 stamps gives possibility of acquiring 6 sets of glassware (2 glasses per set).  The value of six sets of glasses at approximately $40 or $240 will be entered on the chart.

Groceries for a single person at $50 per month equals $200 times four months for a total of $800.  This amount divided by $10 equals 80 stamps divided by 50 stamps gives a single person the possibility of acquiring only one set of glasses (2 glasses per set).  The value of one set of glasses at approximately $40 will be entered on the chart.

reward programs1

FINAL EVALUATION

For this particular example, families have been able to receive rewards totalling approximately $440 to that of $120 for a single person.  Married/coupled persons would probably fall halfway between families and single persons.

It should also be noted that even more rewards are possible if, for example, charge cards with reward points are used to buy groceries provided that the charge cards are paid every month in a responsible fashion so as not to have to pay interest charges.

It is also recognized that those ‘with the money’ (for example, the rich, middle class families and married/coupled persons) will be able to acquire more rewards value , than the poor and singles because the setup of the reward programs makes it possible for those ‘with the money’ and families to get more rewards.

LOST DOLLAR VALUE

This list is still a work in progress.  However, for the list a ’lost dollar value’ for singles $240 for fuel rebates will be used ($160 minus $80 times three for total of 12 months).  The only ‘lost dollar value’ that will be added to the list is the fuel rebate as this is the only constant available and easily calculated for an entire year.  (Lifetime total age 25 to 85, $240 times 60 years equals $14,000.)

CONCLUSION

Initially, examination of the fuel discount program reveals that this is a good program for those with less money to spend as only $35 needs to be spent to get a 5 cent discount, but $210 (six times more in dollars) needs to be spent to  get 10 cent or double discount. However, in the end, extra dollars spent on groceries and stacked rewards still means family of four will get a greater discount than the single person.

Manipulation of reward point programs can also occur in many ways.   It is known that some spouses of married/coupled persons and families will split the grocery bill between them.  A family with a $210 grocery bill will split bill between each spouse at $105 to each get 7 cents fuel discount and 100 air miles  Each spouse can fill up their vehicles once week and get 7 cent discount.

What can one say about rewards programs?  Not much, except to say that reward programs benefit the rich, married/coupled persons and middle class families the most. Can anything be done to level the playing field on reward programs for the poor and singles?  Probably not, except maybe to put a cap on the programs or eliminate them completely.  Elimination would mean everyone would be on level financial playing field with everyone paying same price.

Once again, most married/coupled persons, families and rich are completely unaware of the financial power and  advantage they have over the poor and singles.  And, imagine what other financial advantages are out there as this is only one reward program out of many.

The benefits of reward programs are in the eye of the beholder.  Of course, those who benefit the most relish the thought of accumulating whatever they can, often tier upon tier upon tier. Many believe that one should be rewarded more if one spends more, even if it is at the expense of the disadvantaged and those who have limited food budgets.

And, it does not help for singles to band together (for example two people)to buy groceries as half a discount on a tank of gas is only half a discount.  Half of a set of glassware is only one glass.  Singles are told over and over again that they spend too much.  The reality is that reward programs force them to pay more and get less for the necessities of life like groceries.

“OUR BIG FAT WALLET” BLOGGER’S OPINION -new-pilot-program-are-bigger-fuel-discounts-ahead/

The blog “Our Big Fat Wallet” talks about reward programs in the post ‘Safeway’s New Pilot Program:  Are Bigger Fuel Discounts Ahead?’  Some interesting comments are made on reward programs as well as reader comments as follows:

“Tiered Savings Programs

I’m hoping the pilot program is implemented permanently and other stores follow suit by increasing their fuel savings.

Ideally I would like to see stores have a tiered savings program like Safeway – that rewards bigger spenders with bigger savings. I like to eat – a lot – so our grocery costs tend to be higher than most.

A tiered savings program would benefit anyone who spends a decent amount each month on groceries and if all stores implemented a similar program, it wouldn’t matter what store you buy your groceries at.

If you spend more than $200 in-store, you should be rewarded with a larger fuel discount than someone who only spends $35. With food prices climbing higher and higher, it’s becoming even easier to reach new heights on grocery bills so any additional discount at the pumps would help.

 

Reader comment:

Interesting! When will we know whether the “test program” is put in for good? I’m secretly hoping it is as my husband and I spend way more on groceries than we should so any place we can save a buck or two helps

 

Another reader comment:

I love fuel money tied to grocery stores. Where I live, gas prices are provincially regulated, so there is no option of driving down the street a kilometer and saving an extra $0.02/L, so these programs are the only way to get discounts.

A while ago, Sobey’s had a deal where if you bought $200 in GCs you would get $0.10/L off. And you could stack them. Then, if you used them at their gas station, you got $0.035/L to use in the grocery store. It was an awesome circle because you sometimes they’d let you buy gift cards with other gift cards. We got a few very cheap tanks of gas, LOL.

“Our Big Fat Wallet Blogger comment”:

I actually didn’t know gas prices could be provincially regulated. Using gift cards to buy gift cards – now that’s a sweet deal!

 

Another reader comment:

It’s really nice that it works in your favor, especially since you spend a lot on groceries. Well, hopefully they will implement it permanently!

“Our Big Fat Wallet” Blogger’s response to this reader’s comment:

I am hoping they will implement the program for good and that other retailers will be forced to offer more incentives so we can all start to get bigger fuel discounts”

This concludes the post.

This blog is of a general nature about financial discrimination of individuals/singles.  It is not intended to provide personal or financial advice.

 

HOW MARITAL STATUS IMPACTS DEDUCTIONS, CREDITS FOR MARRIED/COUPLED PERSONS

HOW MARITAL STATUS IMPACTS DEDUCTIONS, CREDITS FOR MARRIED/COUPLED PERSONS

These thoughts are purely the blunt, no nonsense personal opinions of the author and are not intended to provide personal or financial advice.

(While researching online for information on last two posts, this article came up:   “Love and taxes: Canadians confused on how marital status impacts deductions, credits” by Darah Hansen and published in Yahoo Finances on February 12, 2016 just before Valentine’s day.  This article and the comments following the article provide some interesting insight into thoughts of Canadian citizens on reporting of marital status on income tax forms.  This article and comments is also a good follow-up to the information entered in the last two posts.

Comments of the author of this post are shown in italics.)

Quotes From Article

Quote from article states:

  • ‘Recent survey by Leger, on behalf of H&R Block Canada, found that more than half of us mistakenly think that married and common-law spouses can file a joint return to save money on their taxes. Another 40 per cent believe it’s up to us to decide whether to claim our marital status on our tax returns, while a handful of respondents doubt the CRA (Canada Revenue Agency) has guidelines to determine that status.
  • Couples are required by law to check the correct status box in tax forms.
  • Family incomes in Canada are not combined for the purpose of calculating tax; however, they can be for the purpose of calculating income-tested benefits, such as the GST/HST credit or the National Child Benefit supplement.
  • Couples also stand to benefit from combining their charitable donations, transit passes and medical expenses.
  • And, new this year, parents of children under 18 years stand to gain from a newly announced federal tax credit. Often referred to as the “family tax cut”, the new measure allows a higher earning spouse to transfer in kind up to $50,000 in income to his or her spouse in order to collect a tax credit of up to $2,000.Canadian taxpayers are required by law to answer the marital status question correctly.  “If you lie, it’s tax fraud,” says Golombek…..
  • To be considered common-law, two people must live together in a conjugal relationship for 12 months or immediately if you have a child together. If you receive benefits you are not entitled to because of an incorrect marital status, you can bank on being asked to repay them.
  • One final misconception: About 44 per cent of Canadians believe that once you are divorced, you can claim as single the following year. But once you have filed as married, you can never claim single. You are instead classified as separated, divorced or widowed’, (end of quote).

Comments from Readers

The comments following the article, of which there were many, resulted in very different viewpoints.  Indeed, some comments turned out to be very derogatory and inflammatory as often occurs in forums of this kind.  Families with children call singles ‘selfish’ and single call families with children ‘breeders’, etc.  Analysis of the comments revealed some commonalities.

A large majority of Canadian citizens, it seems, don’t have a clue about declaration of their marital status on income tax forms, especially those that are married, divorced, separated, or living common-law.  Canada Revenue Agency (CRA) has very clear definitions of marital status, so why the confusion?

Some of the reasons why incorrect reporting of marital status on income tax forms are as follows, (these are comments that were submitted by the readers):

Unhealthy or unequal relationships with their significant other.  

  • One comment:  ‘good luck in filling as common-law in my case my partner refuses to file common-law, said his taxes are complicated, and we been together now for 5 years. I look at it he is hiding something and don’t want me to know his business.’

Some don’t seem to want to record their marital status as outlined in CRA rules. One of the biggest issues on recording marital status seems to revolve around those that are divorced/separated and what they will have to give to the other spouse in the way of child and spousal support.

  • ‘Once you are legally married you can never again claim “single”. If you divorce, you must say “divorced”, even if you were divorced 40 years ago. If you remarry, of course, you then check the “married” box once again. Until your partner dies, whereby you become “widowed” until you remarry or die yourself.  To be “common law” you will have been living together for 12 months prior to filing your taxes, – or right away if you have a child together and it happens to be less than that.  (Even if divorced for many year, marital status would still be divorced).’
  • ‘Making a “stupid decision” not to inform CRA about this issue will often come back to bite you.’
  • ‘There are more tax breaks for single moms then for being married. It is actually scary to tell them when you finally do get married. There goes everything.’
  • ‘Seems strange, usually you marry the mom not the kids. Not sure why she would stop getting benefits to support her kids. Note to self, stay clear of single moms and the tax man will pin you with the responsibility.’
  • ‘So why (does)  Revenue Canada have different category for divorced people? to have a reason to garnish…  They do this because people who are separated or divorced often have separation agreements/court orders for making support payments. Spousal support payments are taxable in the hands of the recipient and deductible for the payer. Since there are no slips that go with these payments they want to make sure that both parties are claiming it or including it correctly (i.e. not just being deducted by the payer and not included in income for the recipient).’

Many income tax filers have no clue what benefits they will get and how marital status will affect those benefits.  Married/coupled persons don’t seem to realize they will receive more benefits throughout their married/coupled lives than will singles, particularly ‘ever’ (never married, no kids) singles.

  • ‘Single working professionals get taxed the hardest with the fewest deductions.’
  • ‘There is no benefit in being married. Stay single especially single mothers.’ (Married/coupled persons seem to never be happy with the benefits they get).
  • ‘don’t forget to add to move in with your boyfriend either, if you want the benefits or to minimize your tax, of course based on that rationale they should struggle on one income just to get benefits is quite irrational thinking.’  (This presumably was a tongue-in-cheek remark to the above comment.)
  • ‘You may not see the benefits of being married when it comes to taxes, but financially there are a lot of benefits to not be single. Sharing costs like same  housing is huge and when finances are done with purpose in mind can lead to wealth creation.’ (This is known as being able to live more cheaply because of economies of scale-Six Reasons why Married/Coupled Persons able to Achieve More Wealth). six-reasons-why-married-coupled-persons-are-able-to-achieve-wealth/
  • ‘But there is no denying  that two people going in the direction accomplish way more than one person by him/herself….. those who stay together are better off statistically in a financial sense than those who go about it alone.’ (This is because of  ability to accumulate wealth times two persons and ‘rule of 72’ -Six Reasons why Married/Coupled Persons able to Achieve More Wealth)
  • ‘Couples can transfer unused credits to each other. Singles lose unused tax credits.’  (This is because of marital manna benefits – Six Reasons why \Married/Coupled Persons able to Achieve More Wealth)
  • ‘I was once told by my neighbour that he and his wife would be better off financially if they divorced. Obviously not ALL Canadians are confused about tax credits and deductions. (Next comment) Not so. Couples can transfer unused credits to each other. Singles lose unused tax credits.’  (This is known as manipulation of assets as stated in ‘Six Reasons why Married/Coupled Persons able to Achieve More Wealth).
  • ‘I have never paid more than what I owe based on my income whether single, married or divorced. The only difference it makes is for benefits like GST rebates, etc….’
  • ‘Family incomes in Canada are not combined for the purpose of calculating tax.’  
  • ‘They are only combined for potential benefits such as GST tax credits… etc…..you can transfer unused tax credits to lower the spouse’s taxable income, thereby reducing their taxes. CRA combines them for the purpose of calculating GIS benefits and HST refunds.’

Some tax filers choose to falsely record their marital status, though they know they are committing fraud.

  • ‘Most Canadians play dumb as they are fully aware they are breaking the rules and pretend like they didn’t know. They cheat hoping they will not get caught.’
  • ‘If you are married the tax form asks for your spouse’s name, SIN and whatever.’
  • .It’s not your fault you didn’t get caught. It is your fault for claiming single while married. Let me simplify this for you. Two scenarios. Husband and wife. Both make $35k. If they claim single each pays tax on $35k. If they claim married EACH pays tax on $35k. The combining is only for tax credit purposes. Percents don’t change due to marriage or not. Govt fraud is irrelevant to this conversation. And if it is true… then so what … two wrongs make a right? Seriously you need to get professional advice. Just because you have not ‘been caught’ yet does not mean it won’t happen. You are cheating and if you are getting tax credits fraudulently, you will pay a penalty if caught.
  • For those who don’t think there are repercussions to false filing, you can view the convictions from each province at Google “CRA Criminal investigations actions, charges, and convictions”.

Many more comments were made and are too numerous to be included here.

CONCLUSIONS

  • If there is confusion about how to record marital status on tax forms, get professional help.
  • Incorrect filing of marital status on tax forms constitutes fraud.
  • Education, education, education – married/coupled persons need to educate themselves on all the benefits they receive from date of marriage to after their spouse is deceased.  They need to realize that singles have been left out of financial formulas and do not receive benefits such as transfer of spousal credits, pension splitting, tax relief if one spouse is in nursing home, etc. even though it costs singles more to live than married/coupled persons living as a single unit.
  • Singles deserve to be included in financial formulas at 70% of that given to married/coupled persons.  Many singles have worked throughout their entire lives  (35, 40, 45 years) and,with their taxes have supported  married/coupled persons and their families; therefore singles deserve equal financial representation in financial formulas.
  • Problems that divorced/separated persons have with spousal/child support, etc. should not be the problem of singles and should not be a reason to say that ‘singles’ are lying on tax forms (especially ‘ever’ singles who only have one option to record on tax forms, that is ‘single’).

This blog is of a general nature about financial discrimination of individuals/singles.  It is not intended to provide personal or financial advice.

PROFILING OF SINGLE MEN-CULTURAL AND MARITAL DISCRIMINATION OF SINGLES

PROFILING OF SINGLE MEN-CULTURAL AND MARITAL DISCRIMINATION OF SINGLES

(These thoughts are purely the blunt, no nonsense personal opinions of the author and are not intended to provide personal or financial advice.)

On January 18, 2016, an opinion letter entitled “Culture Clash” was published in the Calgary Herald by a couple profiling single migrant men.  The letter has been reproduced here in its entirety. The response by the author of this blog published in the Calgary Herald has also been reproduced here.  The name of the opinion letter was changed by the Calgary Herald editors to “Nothing wrong with being single”.

Today on the program “The Social” (a Canadian social commentary program) a statement was made in one of their commentaries that single white men are the cause of many terrorist activities, for example, Timothy McVeigh.

This post is not of a financial nature, but is entered here over deep concern for negative profiling of singles.

CALGARY HERALD EDITORIAL LETTER “CULTURE CLASH”

Re:  Angela Merkel says Germany has lost control of the refugee crisis and public anger over Cologne sex attacks

My wife is from Germany and keeps in contact with family there who live in a small village near Stuttgart, where the German government has housed some 60 single migrant men, all under the age of 40, in an unused grocery store.

These folks have daughters in their early 20s who no longer feel safe going out at night or using the trains due to these men’s constant leering and gesturing.  Recently, a teenage niece was confronted in her grandmother’s backyard by three men who tried to prevent her from getting back into the house, first asking for money and then: ‘ Do you like Hitler?’ Not up on current events, apparently.

So far, our federal government deserves full credit for allowing in only vetted immigrant families, but my concern is with their overly ambitious quotas and deadlines, they may open it to single men as Germany and other European countries did.  In that case, it’s not inconceivable that what happened in Cologne and other cities in Cologne and other cities on New Year’s Eve could one day come to a big public event here, as soon as July perhaps.  (Authored by couple from Calgary).

(Response to above letter) PROFILING OF SINGLE MEN-NOTHING WRONG WITH BEING SINGLE

January 18, 2016 letter “Culture Clash” by the (name not published here) is disturbing. This letter is profiling all migrant single men as disgusting human beings.

How did these single men get this way except to be taught this by men including fathers and a society that has no respect for human dignity?

To change behavior, how about talking to them about respect, first of all, for themselves and then respect for women?

Singles are fed up with being negatively profiled and told they are worth less than married people.  They are told they are spendthrifts, don’t behave properly, but when they marry they suddenly become decent human beings.

Marital status and being male does not define social intelligence.  Rather what you have been taught and your moral values define who you are.  Married people, parents and fathers should look to themselves when they profile single men as being societal failures.

CONCLUSION

So, in just two instances single migrant men and single white men have been negatively profiled as being bad people.  This is a pretty big number of the total single men population. Such profiling also has a negative effect on the psychological well-being of singles.

When are married/coupled persons and families (including race) going to ‘get over themselves’ in thinking that they are the only ones who are able to have cultural and social intelligence?

Marital status does not mean married/coupled persons and families are going to behave any better than singles.  Look to examples where Canadian immigrant parents have killed their daughters because of clashing religious ideals, the atrocities committed by men in India, both single and married, against multiple raping of females, and family members killing each other or committing crimes against each other.

To  stop negative profiling and financial discrimination of singles, marital status needs to be eliminated in the equal treatment of all human beings regardless of race and sex.

This blog is of a general nature about financial discrimination of individuals/singles.  It is not intended to provide personal or financial advice.

MARITAL STATUS DOES NOT DEFINE FINANCIAL INTELLIGENCE

MARITAL STATUS DOES NOT DEFINE FINANCIAL INTELLIGENCE

These thoughts are purely the blunt, no nonsense personal opinions of the author and are not intended to provide personal or financial advice.

In the last four posts, financial discrimination of senior singles was discussed.  In addition, two reader letters and response to letters addressing assumptions of married people that singles can live with someone if they lack financial resources, and that financial problems of singles are because their lifestyles are too extravagant was discussed.

It is mind boggling as to why married/coupled people always seem to think that because they are married/coupled they have more financial intelligence and are able to manage their money better than single and divorced/separated persons.  They also almost can never put themselves into the financial shoes of single and divorced /separated persons.

Singles are one the fastest growing demographics in the country, yet they are left out of financial formulas and discussions.

leave it to beaver

WHEN OUR POLITICAL LEADERS MAKE IT SOUND LIKE THE FAMILY FROM ‘LEAVE IT TO BEAVER’ IS STILL THE CANADIAN NORM, THERE ARE CONSEQUENCES FOR THE REST OF THE COUNTRY, SAY SINGLE VOTERS (quote from example #3 article).

 

In this post, the issue of marital status not defining financial intelligence will be discussed by reviewing three examples.

Example #1 and #2 show married/coupled persons are not any better at managing money than single and divorced/separated persons.  Example #3 talks about financial misconceptions about singles.

(Financial profiles from the Financial Post are an interesting study in how persons perceive wealth.  Anyone can submit an email requesting a free family finance analysis.  It is interesting to note that most of the married/coupled requests for financial analysis are from relatively wealthy persons.  These same requests always are requesting financial help because of worry that they will not have enough money to live and retire.)

Example #1, a financial profile of a married couple is as follows:

Calgary Herald, December 12, 2015 Financial Post “Oil Crash Forces  Fix for Couple” – (this profile can be viewed in full online)

This summary is about Gary, 60 and Wendy, 67, an Alberta couple who grew prosperous with Gary’s work as a petrochemical  engineer often earning as much as $200,000 a year doing consulting.  However, his work is now history as a casualty of collapsed oil prices.  Wendy worked as an administrative assistant earning $24,000 a year before she retired in 1990.  Their income at the present time is $2,175 a month and is $3,240 less than their total monthly expenses of $5,415.  They say they need to know if they can survive.  The article does mention one child who is renting one of their rental properties.

Their net worth is $1,867,238.  Their assets include residence $550,000, rental property #1, $460,000, and rental property #2 $430,000.  Their investments include Registered Retirement Savings Plan $132,616, USA 401K in Canadian dollars $250,000, Tax Free Savings Account $39,334, non-registered savings/GICs $174,288 and two cars $17,000.  Their total  liabilities are two mortgages of $186,000 on rental properties.

The financial planner makes the statement:

“When Gary generated an income of $200,000 a year or more, they could afford to ignore investments, rent properties below market value and spend freely”.

The financial planner’s recommendation is get rid of money losing rental property, cut expenses and reallocate assets to cut investment costs.  If they follow the planner’s advice, they should have a before tax income of about $74,000 per year.  With splits of pension income and application of age and pension income splitting credits, they would pay 13 percent tax and have $5,345 a month or $64,140 annual income to spend.  Compare that to reader letter#2, December 12, 215 post that suggested singles with rent or mortgage expenses can live comfortably on a middle class income of $27,000 a year.

It is interesting to note  that their food budget for two people is $1,120 per month and expenses for entertainment are $220 per month.  The financial planner suggests they cut their food budget by $400 and their entertainment budget by $100 per month.

Simple logic without seeking financial planner advice would imply that in order to increase their income they could sell one rental property,  live on the proceeds, then sell the next rental property and live on those proceeds, and finally start taking income from their investments.  They would still have their residence as collateral.  With all their wealth this couple still feel they need to seek financial advice.

If one compares this example to the suggestion from the recent posts that singles can live on $27,000 per year and $200 a month for food, one wonders why this couple would have any financial worries with the wealth that they  have.  Also, reducing their food budget by $400 still allows them to  have a food budget of $350 per person.

Example #2 is taken from a published article “Beyond the Blue Line” by the Canadian Scholarship Trust (CST).

The report showed that approximately 66 per cent of Canadian parents have, or know someone who has, borrowed money or used retirement savings to put their children through extracurricular activities.

In contrast, 48 percent of parents have invested in a Canadian RESP (Registered Education Savings Plan).

CST reported that 43 per cent of parents said they’d borrowed money on a credit card, line of credit, personal or family loan for extracurriculars like hockey. The remaining 23 per cent deferred their retirement or used their retirement savings for extracurriculars.

More than half of Canadian parents (57 percent) said they feel every child should have the chance to play hockey if they want to, ‘because it’s part of growing up in Canada,’ CST said. The percentage represents a drop of more than 10 per cent from last year, when 69 percent said all children should be able to play hockey.

Despite the high rate of borrowing for extracurriculars, nearly half of parents said they knew someone pulling their kids out due to the cost. Thirty per cent said they, or someone they knew, regret the amount of money spent on activities like sports.”

Parents will play financial roulette with their money even though there is less than one per cent chance of their children becoming professional hockey players.

Example #3

This example is taken from the National Post June 12, 2015, : “ They are one of Canada’s fastest growing demographics, so why are politicians ignoring the single voter?” by Claire Brownell,  (article is available online).

This article first talks about:

“Marcel Watier, a single 39 year old, who lives on his own in a rented basement apartment.  He earns a good salary, thanks to a full time job and a part-time job on the side.  He says people think he must be spending his money on stereotypical urban luxuries – dinners out, craft cocktails, a condominium with a pool and a rock-climbing wall – since he doesn’t have a partner or children.  ‘They just see a single guy working two jobs and think I must be rolling in money.  If I was rolling in money, would I be working two jobs?’

In addition to supporting himself, he helps his two sisters, who have eight children between them and a ninth on the way. (The article does not state why he has to do this.)

If those were his children and Walter were married, he would be eligible for a long list of tax breaks, benefits and programs.  As a single person, he’s on his own.  He states: It drives me up the wall to hear the whole ‘selfish single’ term.”

The word single is hardly ever used by politicians.

“The phrase ‘Canadian families’ has been spoken 5,669 times in the House of Commons since 1994″, according to OpenParliament.ca, with Conservatives (Party) accounting for almost half of those mentions.

If Canada’s singles were to get up tomorrow and decide it’s high time they stood up for themselves, they would form a formidable voting bloc.  Maybe it’s time to try.”

Conclusion

The above examples show that marital status does not define financial intelligence; rather it is the belief systems, moral values, and financial values instilled throughout lifetime that define how money will be spent and saved.

It is time that singles be included in financial formulas, not just families.  Instead of politicians promising things to only certain groups of citizens, they should be thinking about how to improve society as a whole.

This blog is of a general nature about financial discrimination of individuals/singles.  It is not intended to provide personal or financial advice.

SENIOR SINGLES PAY MORE – Part 4 of 4

RESPONSE TO LETTERS ON UNFAIR SINGLE SENIORS TAXATION

These thoughts are purely the blunt, no nonsense personal opinions of the author and are not intended to provide personal or financial advice.

(This opinion letter was originally published in a local newspaper on September 9, 2015.  Since there is a space limit for number of words that can be submitted to newspapers, additional comments that do not appear in the original published article have been added here in italics).  This blog post was updated on December 1, 2017 replacing 60-70% of living costs to 1.4 equivalence scale (equivalence-scales) for singles.

 Here we go again.  Opinion letters from last two weeks show married/coupled people cannot put themselves into singles’ financial shoes without dumbing down singles’ opinions and sticking singles’ finances into family financial boxes.  Unfortunately, singles finances don’t work that way.  Following is a response to both letters.

Re TFSAs (Tax Free Savings Accounts), caps must be set on TFSA amounts.  Otherwise, wealth spread between married/coupled people and singles and low income people will exponentially widen with less money collected in tax systems, and ability to pay for public programs such as education disappearing.  Most singles, single parent and low income families are unable to max out TFSAs at lower limit, let alone higher limit (and RRSPs-Registered Retirement Savings Plans).

Re income splitting benefits, multiple discussions show wealthy families benefit more than other families.  Present format implies households with singles, single parents (don’t get to stay home to raise kids) and parents with equal incomes don’t deserve same financial equality.  Re pension splitting married/coupled people already get two of everything including pensions.

You say bizarre conclusions have been reached.  Let’s talk bizarre.  Re Allowance Program and Credits benefits, 2009 Policy Brief, “A Stronger Foundation-Pension Reform and Old Age Security” by Canadian Centre for Policy Alternatives, page 4 policyalternatives.ca, states:

‘this program discriminates on basis of marital status as confirmed by case brought under Charter of Rights where federal court agreed program was discriminatory, and ruled it would be too expensive to extend program on basis of income regardless of marital status.’

So what is happening?  Age eligibility for Allowance benefits will change from 60 to 62 beginning in 2023 with full implementation in 2029.  In this democratic, civilized country let’s just ignore federal court rulings and continue a $? million discriminatory program.  Article also suggests that:

‘OAS (Old Age Security) and GIS (Guaranteed Income Supplement) combined should be increased to at least bring it up to after-tax LICO (Low Income Cut Off) for single individuals.’

Why should married/coupled people get discriminatory marital status benefits where unused credits like Age Credits benefits can be transferred to spouse?

Conservatives are so proud they have initiated targeted tax relief benefit where single senior can now earn $20,360 and senior couple $40,720 before paying federal income tax.  Using simple math, tax relief for single seniors is only $1,697 per month, for senior couples $3,393 per month.  Rent or mortgage payment of $1,000 per month is barely covered for singles, but is amply covered for senior couple.

BMO Retirement Institute Report “Retirement for One-By Chance or Design” 2009 .bmo.com and other reports state present tax systems give huge advantages to married/coupled people with singles never married or divorced at some point throughout their entire working career usually subsidizing married/coupled people.

Russell Investments “Spending Patterns in Retirement”, February 2010, russell.com states:

‘government transfers, such as CPP and OAS are generally not sufficient to cover Essentials of Retirement.  Problem is magnified for single retirees.  For example, in $35,000-$60,000 income category, couples spend only about 12% more than singles on essentials, yet receive about 80% more in government transfers’.

Eighty per cent more in transfers, why can’t married/coupled people grasp this fact?  Why can’t families understand that ‘ever’ singles have not used medical services for baby delivery, maternal/paternal paid LOA’s from work and many have not used any EI benefits?  Instead ‘ever’ singles are financially supporting and subsidizing families.

Reader #2 letter also talks about how expensive it is to raise a disabled child.  It is no different living as a disabled adult.  The Assured Income for the Severely Handicapped (AISH program in Alberta) allows only $1,588 a month for an unemployed disabled person of single status.

True living costs for singles must be recognized.  Using equivalence scales it is a well-established fact that living costs for singles are 1.4 to that of a couple.  If married persons own their homes outright, the cost of living is even less to that of singles who rent or have a mortgage.  If programs such as pension splitting and survivor benefits continue for married/coupled and widowed seniors, then at same time, singles and not widowed single seniors should get 1.4 equivalent scale enhancements through GIS and OAS relative to married/coupled persons’ baselines.   Equivalence scale of 1.4  for couples to that of singles’ federal tax relief of $20,360 income should equal $28,504 ($2,375 per month) not $40,720 for couples.  Why is that too much to ask?

Politicians and most families are financially illiterate in financial affairs of singles.  The Conservative political parties (provincial and federal) are particularly guilty of this as many marital status benefits have been implemented under their watch.

Further advice from reader letters state singles can live with someone else when they are already living in studio, one bedroom apartments, and basement suites.  Senior singles who have lived productive lives while contributing to their country want and deserve their own privacy and bathroom.  Many senior assisted living dwellings have in recent years built more spaces for singles who with one income pay more for that space than married/coupled persons.  Just how long should shared arrangements go on for (entire lives?) instead of correcting underlying financial issues?

Following examples show financial dignity and respect for singles (and low income families).  Attainable Housing (attainyourhome), Calgary, allows maximum household income of $90,000 for single and dual/parent families with dependent children living in the home and maximum household income of $80,000 for singles and couples with no dependent children living in the home.  Living Wage for Guelph and Wellington allows singles dignity of one bedroom and living wage income that is 44% of a family of 4 income and 62% of a family of two (parent and child).

Assumptions that middle class singles can live on average after tax income of $27,212 is bizarre.  Suggestion of $200 food budget and $110 transportation per month for singles is unrealistic.  At present gas prices, $150 per month is barely adequate for 30-40 minute drive to and from work.  For comparison, Living Wage for Guelph and Wellington (livingwagecanada) (2013 living wage of $15.95 per hour), a bare bones program to get low income and working poor families and singles off the street, allows a calculated living wage income for single person of $25,099 with no vehicle, food $279, transit and taxi $221 (includes one meal eating out per month).  (It should be noted that men require more calories; therefore, their budget for food will be higher.  Also in 2015, the living wage for Guelph and Wellington has been set at $16.50 per hour).

Reader #2 letter seems to include expenses such as utilities, insurance, and phone bill in family expenses, but excludes them from the single person expenses.  Reader #2 seems to think that $500.00 after food, transportation, clothing and rent expenses per month is ample money to cover miscellaneous expenses such as laundry, recreation and eating out plus the non-mentioned utilities, insurance and phone bill. The reader #2 letter then goes on to say:  ‘And, if a single person cuts out some of the recreational activities and eating out, could break even at the lower end.’  Once again there is that assumption that singles spend too much on recreation and eating out.  And, of course, there is no mention of singles having to save for emergencies or retirement.

While singles are living in their small spaces (average size of new studio, one bed and one bed/den new condo combined being built in Toronto is 697 sq. feet), majority of Canadian married/coupled people families are living in average 1950 sq. foot houses (2010) with large gourmet kitchens, multiple bathrooms, bedrooms for each child and guests, basement, garage, yard, and nice patio with barbecue, etc.

Families don’t take their own advice which they dish out to singles.  Senior couples or widowed don’t want to give up their big houses, but ask for reduced house taxes and senior’s school property tax assistance programs (Calgary Herald, “Not Now” letter to the editor, August 26, 2015).  If you can’t pay your house taxes, how about moving to smaller place or go live with someone (tit for tat)?  If families with kids don’t pay school property taxes as seniors, then homeowners who have never had kids should not have to pay school taxes throughout their entire lives.

Financial discrimination of singles is accepted in mainstream and is, indeed, celebrated.  Article like “Marrying for money pays off” (researchnews) implies married/coupled persons and families are more financially responsible.

In Calgary Herald article, August 7, 2012, Financial Post “Ten Events in Personal Financial Decathlon Success” (personal-financial-decathlon), the Family Status step says:

‘From a financial perspective, best scenario is a marriage for life.  It provide stability for planning, full opportunities for tax planning and income splitting and ideally for sharing responsibilities that can enhance each other’s goals and careers.  One or two divorces can cause significant financial damage.  Being single also minimizes some of the tax and pension advantages that couples benefit from’.

How nice!

There is no need for another political party as stated in Reader #1 letter.  In present political system, singles are losing financial ground.   Words ‘individuals’ or ‘singles’ rarely come to the financial lips of politicians, families or media.   What is needed is to bring financial issues of singles to same financial table as families and to make positive changes for both parties to financial formulas.  Singles are not asking for more financial benefits than families, but equivalency to family benefits as applicable at rate of 1.4 to that of household comprised of two persons.  They deserve this as citizens of this country.

So when singles are no longer able to live with financial dignity thus creating financial singles ghettos (financial bankruptcy because they are not included in financial formulas), just what will society do?  Apparently, they are looking for people to go to Mars.  Singles could always be involuntarily sent there.  Out of sight, out of mind.

This blog is of a general nature about financial discrimination of individuals/singles.  It is not intended to provide personal or financial advice.

 

SENIOR SINGLES PAY MORE – Part 3 of 4

SENIOR SINGLES PAY MORE – Part 3 of 4

(These thoughts are purely the blunt, no nonsense personal opinions of the author and are not intended to provide personal or financial advice.)

(The following letters were published in a local newspaper and were in response to the two published articles by author on August 19, 2015 in same local newspaper. It is the policy of the author of this blog to not identify persons by name in most cases, so proper names have been removed from the articles).

OPINION LETTER FROM READER #1 PUBLISHED August 26, 2015 – CORRECT NUMBERS, BIZARRE CONCLUSIONS

“Lies, damned lies, statistics”.

This statement popularized by Mark Twain describes the use of numbers (i.e. statistics) to support weak or, as in the following example, totally erroneous arguments.

Last week’s opinion in the Cochrane Times is such a case of presenting correct numbers to jump to bizarre conclusions.

Her first item of ‘unfairness’ is the fact that single adults now have an annual $10,000 TFSA (Tax Free Savings Account) limit whereas those ‘wicked’ (i.e. taking advantage of such unfairness) people who have a partner together have $20,000. Is author suggesting that couple should only have one TFSA? And if so, which one should have it? Through misfortune or choice most currently in a partner situation end up alone eventually. Under the author’s proposal, hopefully you are the one with the TFSA.

Next, she jumps on the ‘horror’ of pension/income splitting only for couples. I am baffled how she proposes applying it to singles. Income splitting was designed to reduce the financial punishment of couples where one partner stayed home to raise kids. What is the problem with that? The CPP (Canada Pension Plan) or other pension splitting later in life rewards that earlier decision where generally one partner has the larger pension because the other one stayed home.

Then we come to the age credit. If there is an unused credit amount the ‘unfortunate’ single senior cannot transfer it. However, don’t forget that if you are a single senior and have excess age credit it means you are paying zero tax anyway. So what are you losing? Also, yes the age credit is ‘clawed back’ as one’s income gets larger. So what? People with larger income should pay tax. Someone has to contribute to pay your OAS (Old Age Security) and GIS (Guaranteed Income Supplement), etc. etc.

Then I read ‘a senior couple’ can earn $40,720 without paying income tax while a senior single can only earn $20,360 before paying any tax. So, two senior singles together have the same $40,720 limit. What’s to stop them from living in the same residence and sharing the living expenses? You can do that and still claim single status with CRA (Canada Revenue Agency). Other than rent, virtually all other expenses are per person, not per couple. Does she propose the limit to be $20,360 for a couple? There would be a stampede towards claiming ‘single’ status. It would be the end of marriage, either common-law or certificate status.

Note that it is possible for two people to claim either single or married status and still live in the same location. It has been done either way. The single status may need a bit of convincing with CRA but if you keep separate accounts, etc. it has been accepted. But be aware, there are benefits and disadvantages not just financial ones to either status. And you can’t jump back and forth each year.

The rest of the article goes on and on about the supposed inequities between singles and couples in income and net worth. Are we to blame the current or any particular government’s rules or is it lifestyle choices?

The author summarizes at the end by telling you the reader to vote for a party who does not ‘violate the human rights of the single person’. Good luck with that. No current party would consider such politically insane proposals. She’d have to form her own party and run for office. As it is, the current changes in tax rules for seniors, like larger TFSA, and smaller RRIF (Registered Retirement Income Accounts) withdrawals (deferring tax payable), are a definite improvement to many seniors, either single or couples.

OPINION LETTER FROM READER #2 PUBLISHED September 2, 2015 – FINANCIAL FAIRNESS DOESN’T WORK LIKE THAT

Dear author,

Reading your article last week, I was concerned by the assertions you made. While I am in no way opposed to benefits to seniors, be they single or otherwise, I found your statement that pension splitting and income splitting should not be permitted deeply troubling.

Of the current elderly generation, the vast majority of mothers were at least partially, stay-at-home moms, leaving with considerably smaller pensions and incomes than their spouses. Do you think that, upon retirement, they should have to live almost entirely off the husband’s savings and pension? Few people really have enough money to comfortably support two people in their retirement. But this was not the part of your article that I found most disturbing.

Of all that you said, the part that troubled me most was your assertion that raising children is not expensive enough to justify financial benefits and tax deductions. I assume from this that you are single yourself and have never experienced the costs of raising children. MoneySense.ca, the same website you sited for your data, averages the costs of raising a child to age 18 at $243,660. This amount may be reduced to approximately $180,000 if one of the parents chooses to stay at home with the kids rather than place them in daycare, but it is still a lot of money and one parent not working decreases the family’s annual income considerably.

So an average family with three children would spend $38,475 a year on their children. That sum can be radically increased if one of those children has special needs. If that family lived in a three- bedroom apartment in Calgary, they would be paying $2,400 per month, as opposed to the average $1,366 for one-bedroom apartment. Their rent would then $28,800 per year. They are spending $67,275 a year on just kids and a place to live. Those numbers are excluding the parent’s expenses such as utilities, insurance, phone bill, gas, and food which would total at approximately $17,000 if they had a dental plan with their work, bringing the expenses up to $84,275 a year.

If they are middle class, MoneySense says that the family’s annual income must be between $61,929 and $88,074. So basically, they must be at the upper end of middle class for their income to cover their annual expenses.

For a single person, living alone, they would be spending approximately $2,400 a month on food, $1,320 for transportation, $1,200 for clothing, $16,492 on rent, and up to $6,000 on miscellaneous expenses such as laundry, recreation and eating out. Total: $27,212. Earning $23,357 to $36,859 (middle class), a person would need to be near the middle of that spectrum to break even. And, if a single person cuts out some of the recreational activities and eating out, could break even at the lower end.

Living expenses are high and many people do struggle to some degree to make ends meet, but the solution is not to take away money from families who are struggling to support more people and give it to those who only have themselves to support.

(This blog is of a general nature about financial discrimination of individuals/singles.  It is not intended to provide personal or financial advice.)