When the government made taxes on CS payable to the payor, and not the recipient, the intent was to lower the amounts by about 30%. Unfortunately, they never did do that, even though they "claim" to. When you look at the numbers, they did not. Then in 2006 they increased the table amounts again, by another 30%. This is why so many payors are in severe financial distress these days and why the Guidelines do need to be modified. The current guidelines are not at all fair.
If you make $50,000 and have 2 kids, you pay $719, which at first glance doesn't seem like too large an amount, which is only what alot of CP's see.
But if you reverse the situation for them, and assume they also make $50K and are now PAYING child support at $719 (assume to the ex-husband for ease of example), they start to see it differently when they are faced with the actual math and details. Assume your at 35% tax bracket, your net pay is now $32,500. You also have additional items taken off your pay stub (as we all do) usually around $200/month (for EI, CPP etc). You would be left with $1789/month. Now, that is before "extra-ordinary" things are added on. Assume another $100/month for this, so now the NCP mom has $1689/month. Because the kids come and visit you alot you keep a home with a room for them, and have a bigger car to transport them around. You don't get to claim the child as a dependent (worth $9K in reducing your taxes) and you cannot collect the CCTB or other credits in relation to the support you provide to your child.
You look at the ex-husband, who now KEEPS the $719/month he WOULD have been paying you (if you had custody) and gets another $719 from you. He gets to claim the child as a dependent, worth 9K, which probably gives him a tax break of 3,000 - 4,000/K per year. He also gets the CCTB (assume $150/month) and maybe other credits etc. So the true "value" of the children for his household is around $1838/month (719 + 719 + (3000/12) + 150) MORE money that STAYS or COMES into his household because the children are there most of the time. And the biggest BONUS, he gets to have his children with him.
You, on the other hand, will be struggling to support yourself and your kids when they visit, based on a seemingly good income of $50k/year.
It is hugely un-balanced and unfair for all CS payors, no matter how small the original CS number "looks" on paper.
If you make $50,000 and have 2 kids, you pay $719, which at first glance doesn't seem like too large an amount, which is only what alot of CP's see.
But if you reverse the situation for them, and assume they also make $50K and are now PAYING child support at $719 (assume to the ex-husband for ease of example), they start to see it differently when they are faced with the actual math and details. Assume your at 35% tax bracket, your net pay is now $32,500. You also have additional items taken off your pay stub (as we all do) usually around $200/month (for EI, CPP etc). You would be left with $1789/month. Now, that is before "extra-ordinary" things are added on. Assume another $100/month for this, so now the NCP mom has $1689/month. Because the kids come and visit you alot you keep a home with a room for them, and have a bigger car to transport them around. You don't get to claim the child as a dependent (worth $9K in reducing your taxes) and you cannot collect the CCTB or other credits in relation to the support you provide to your child.
You look at the ex-husband, who now KEEPS the $719/month he WOULD have been paying you (if you had custody) and gets another $719 from you. He gets to claim the child as a dependent, worth 9K, which probably gives him a tax break of 3,000 - 4,000/K per year. He also gets the CCTB (assume $150/month) and maybe other credits etc. So the true "value" of the children for his household is around $1838/month (719 + 719 + (3000/12) + 150) MORE money that STAYS or COMES into his household because the children are there most of the time. And the biggest BONUS, he gets to have his children with him.
You, on the other hand, will be struggling to support yourself and your kids when they visit, based on a seemingly good income of $50k/year.
It is hugely un-balanced and unfair for all CS payors, no matter how small the original CS number "looks" on paper.
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