MARRIED OR COUPLED FAMILY UNITS MORE ABLE TO WORK THEMSELVES TO RICHES WHILE SINGLES WORK THEMSELVES TO ‘DEATH’
(These thoughts are purely the blunt, no nonsense personal opinions of the author and are not intended to provide personal or financial advice).
The July 3, 2016 post “Boutique Tax Credits Pushing Singles Into Poverty-Part 2 of 2” (credits) outlined how married or coupled family units are generally able to achieve greater wealth because of tax credits. This post will discuss how married or coupled family units with multiple sources of income will likely achieve greater wealth than singles with multiple sources of income. To achieve the same level of wealth as married or coupled family units, singles would have to work themselves to ‘death’ while paying more income tax.
Case #2 used information from Financial Post Personal Finance Plan, March 24, 2016 “Couple Sick of Existing Like College Students Are Living Below Their Means, But Could Use Financial Tuneup” (financialpost). This case shows how this married family unit, Mark 45 and Cathy 43 with two kids 9 and 12, have already achieved equivalent millionaire wealth in their 40s. They bring home income of $8,670 per month from two jobs and two rental properties. Mark’s job is part time and tenuous. He travels to northern Ontario for his job and to service the rental properties They say ‘we live like college students, and we are tired of it.’ Financial advice is given on how they can retire at age 65, keep all their properties and have surplus income for travel and pleasure that they now forego.
One could say that some married or coupled family units will work themselves ‘silly’ (like college students) while singles are often told they are spendthrifts, selfish and don’t work hard enough. In order for singles to achieve the level of wealth this couple has, they would have to work two or three jobs, pay more tax and not get the same tax credits this couple does. In other words, they would have to work themselves to ‘death’ or to poor health.
Just one example of taxes that all family units most likely will have to pay is 2015 federal taxes of 15% on taxable income up to $44,701, 22% on income $44,701 to $89,401, 26% on income $89,401 to $138,586 and 29% over $138,586. It is agreed that each person in family units of singles or married family units pay the same taxes per employed person; however, the married family units with children will get multiple family tax credits, thus paying less tax.
CONCLUSION
It is absurd how singles are perceived to be able to achieve same financial success as married or coupled families unit with children, but when observations using cold, hard down to basics math are used, it quickly becomes apparent that singles and early divorced (with and without children) are unable to achieve same financial success except with $500,000 salaries, huge inheritances or winning the lottery.
(This blog is of a general nature about financial discrimination of individuals/singles. It is not intended to provide personal or financial advice).
RSS Feed