What is Income Sharing?
Income sharing is a policy that allows the income of both parents to be combined and then divided equally for tax purposes.
Under our progressive taxation system this would result in a reduction in combined income tax paid where there is a significant difference in income between partners. It attributes equal value to the different roles each parent plays, whereas our current tax system does not recognise the contribution of parents who spend all or part of their time at home with children.
Why does United Future support Income Sharing?
Currently, our taxation system does not reflect the fact that a family is generally a single economic unit. The taxation system does not recognise that the income of a family unity is shared amongst the entire household.
Income sharing is therefore a way we can attach equal value to the role each parent plays in building a family where there is a significant income disparity between partners.
Income sharing will give couples with children greater flexibility in deciding whether they want to stay at home with young children more frequently or work fewer of more flexible hours.
Couples who are self-employed in farming or business and retired couples are already able to split their income for tax purposes but this is not available for those on PAYE incomes.
The Government already subsidises childcare for those returning to paid work, it should also acknowledge the contribution of those who have decided to forgo their income in order to invest in raising their families.
Download Policy: Income Sharing