Low wage-earning
spouse still adds

to family

WE ALL hate paying more tax,

income

whether it’s because the

government wants to collect more or simply because we earn

more.

When Ottawa put its hand more
deeply into our pockets, we — and
our tax planners — do everything
legally possible to keep taxable in-
come to a minimum.

When we carn more, tax pian-
ning can also help. But we often
wonder if earning more is still
worthwhile. A 43-year-old reader
and his 41-year-old wife are pon-
dering that question.

dollars ©
and sense
Michael Grenby

2

“<q gross $55,000 aud my wife
makes $12,500,” be writes. “We
one married portunity to tax-shelter investment

have two children:
and on her own, and one at home.

«We recently won some money,
paid off our debis and now have
$75,000 left. Is i¢ stiil worth it for

my wife to work?’
This couple’s

14-year-old son

_ come, the couple is still better off
than if the wife didn’t work.

This is particularly true Wits a
choice of the husband increasing
his income in a higher tax bracket,
or the wife earning the extra
money so at least she is in a lower
tax bracket.

However, there's more to carn-
ing income than paying taxes.

‘As this reader notes, going out
to work often entails extra ex-

. And the only way to find
the true bottom line is to write
down all the figures.

Look at the wife’s tax return for
1988. After taxes, CPP and uIC,
she probably took home about
$10,500. From that figure, deduct
the additional expenses incurred
because of her job.

Perhaps convenience foods and
eating out increased the family’s
food bill by $2,000. Higher trans-
portation costs might have been

- $900. Clothing could have added

$1,200, but make an adjustment if,
this clothing was also used for
other occasions. Subtract the tax
saving lost because the husband
has no marital claim. a

After deducting all these extra
costs, the wife might have earned a
clear $5,000.

Add to this the value of the
future CPP pension and possibly
other benefits, as well as the op-

growth by contributing to an
RRSP. An employer pension might
also produce a ‘benefit over the
long term.

Now you must decide if the fasn-
ily’s quality of life shows a net

has $5,000 saved in an education — gain with the wife working.

fund. Husband and wife each have

RRSPs. :

“Should my wife keep working
so she can continuc to build up her
Canada Pension?” said the hus-

band.
“We realize

keeps working?”

it costs my wife
quite a lot to work, with higher in-
surance, more clothes, and higher
food and general expenses. Js my
wife really making anything if she

Does she enjoy getting out of the
house? Is she stimulated by the
work and people she meets? Does
she feel better about herself? Does
she feel her time and effort are
worth what she carns after taxes
and expenses? :

What happens at home because
she is working? Does she still have
to run the household or do hus-

See Weigh

From a financial point of view,

a higher income

always means

more money to spend or save. So
when a spouse works, the after-tax

family income increases.

Even when, let’s say, the hus-
band loses some or all of his mari-
tal claim because of his wife’s in-

ONE TREATMENT

CI ORIGINAL LASER
THERAPY

a:

WEDNESDAY TO SATURDAY
APRIL 26 - 29, 1988

Oc,

41 — Wednesday, April 26, 1989 - North Saore News

Fillin coupo ‘
F n with the item descrip-
ton lpi choke and reson
\ o Cashier with |
matching purchase. Maximum of & }
oupons per family purchase. .

PLEASE CLIP AND Fi
LL,
AT HOME TO AVOID DELAY AS
THE CHECKOUTS.

PRINT IN ITEM OF YO!
VALID WEDNESDAY TO SaTunose
SATURDAY, APR OFF RE
APRIL 26 - 29, 1989. LIM; GULAR RETAL
, 1989. LIMIT: ONE COUPON PE iL.
RITEM

Not to exceed the i
t retail pri
Maximum 5 coupons per far

PRINT IN ITEM OF YOUR CHOICE

of the item.
mily v m. Whi

VALID WEDNESDA\
Y TO SATURDAY, AP OFF RE
, APRIL 26 - 29, 1989. LIM GULAR RETAI
. 1989. LIMIT: ONE COUPON PER THEM
ER ITEM

Not to exceed th :
Maximum 5 co e retail

ANY BRAND
OF BATTERIES

RIN

FRUNT iN IT.
VALID WEDNESDAY 90 ST CHOICE

BRT

AINT IN ITEM OF YOUR CHOICE

VALID WEDNESDA\
: Y TO SATURDAY, APRIL 26-29, 1989. LIMIT: ONE oun F
: Pi
lot to exceed the retail price of the ite: ——

Maximum 5 coupons p

er family visit. No Rai [70225]
op a nn Sit. No Rainchecks,

PRINT IN ITEM OF YOUR CHOICE

DN ’
ESDAY TO SATURDAY, APRIL 26 - 29, 1989. LIMIT. O

Not to exceed th il pri
ad e retail price of the j
. aximum 5 coupons per family vat

ANY P
ANY PRODUCE

price of the item. Whi
upons per family visit. No Ranchos ‘ast

F REGULAR
NE COUPON TRETAM.

tem. While Stoc
NoR aincheore. Last.

— mon .
ome er eo0
in oe Ome a some
my en ein

J

m. While Stocks Last.

‘ce omee
jane
omen ome tan

4

VALID WEONESDA
'Y TO SATURDAY, APR OFF RE :
APRIL 26 - 29, 1989, Lin GULAR RETAIL
, 1989, LIMIT: ONE COUPON P:
ER ITE

Not to exceed th i
tl e retail price of the i
aximum 5 coupons per family visit

— com
‘Sene CND omen ore en einen me

D PAINLESS I
CO HYGIENIC iL
CO DIET AND WITHDRAWAL f
POINTS INCLUDED
[ SEPARATE DIET
TREATMENT AVAILABLE
CO GIFT CERTIFICATES
AVAILABLE
SrACE-AGE |
NORTH SHORE 983-2046
1940 Leasdale Ave., Herth Vas

420-2155
597-1428
534-6550
266-3760
688-STOP

m. While Stoc
No Rainchecke Last

oa tems we stock.
“This includes till tape and comparison ads.
WE SELL SAFEWAY'S FLYER ITEMS FOR LESS

Burnaby
Surrey
Langley
Vancouver
Vancouver