incomesplitting
Income splitting is a tax and welfare policy concept that allows, or requires, household income to be allocated across family members rather than taxed solely as the income of the individual earner. The aim is to reflect the household as an economic unit, recognizing that many families share resources and respond to tax rules collectively. By distributing income, a household may move some earnings into a lower tax bracket or take advantage of credits available to the family as a whole.
Common mechanisms include forms of joint or family taxation that aggregate a couple’s income and apply a
The policy is often debated. Proponents argue that it better reflects household labor and costs, reduces tax