Don't kid yourself. The gov't knew EXACTLY what they were doing when they changed the CS laws in 96/97.
Think about it. With the "old" system, payors (usually fathers), were allowed to claim CS as a deduction. While the recipient (usually mothers) were required to claim it as income.
Q: Who's income is usually higher, the father or the mother?
A: fathers.
Pre-guidelines and tax changes, Revenue Canada allowed the deduction by the payor. The deduction esentially returned the taxes paid on the CS to the payor at the tax-rate (tax-bracket) based on his employment income.
While sumultaniously, the recipient had to claim the amount she received as income. The tax-rate on that amount was determined by her emplooyment income, which generally is lower than his.
Sometimes both payor and recipient are in the same tax bracket, in those cases, no loss - no gain from the Govt's perspective.
However what if her employment income is substantially lower? Then her CS is taxed at the rate as determined by her employment income. If she's considered "low income", than the tax she will pay will be substantially lower than the amount he will receive as a refund.
So, by adopting the new guidelines and accompanying income tax legislation and not allowing the payor to claim a deduction. The Gov't now "keeps" the tax paid on the CS by the payor, while the recipient is "exempt" from paying the tax on that amount.
By making this move ... The Gov't generated millions in revenue!
... and you thought they were doing it for the CHILDREN?
My 2cents
B00kW0rm