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Jay Currie

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1/06/2005

Traditional Family: Pay Up

Quick question: who pays less taxes, a person earning $80,000.00 a year and supporting a spouse taking care of kids at home? Or a couple, each working for $40,000.00 per year? According to Neils Veldhuis and Jason Clemens writing for the Fraser Institute, the single income family is dinged for $14,000.00 in taxes while the two income family pays only $11,256.00. (2003 numbers) But wait, there’s more, the dual income family could deduct a portion of the child care expenses they pay to a third party which, on Veldhuis and Clemens numbers, drop taxes paid to $9027. The stay at home parent family pays $5000.00 a year in extra taxes.

Now, of course there is the little matter of getting to 80k...