Laws that penalize(d) singles
While doing some research, I ended up reading about several laws that affected single people. One of the most egregious was one from North York, outside of what was the City of Toronto at the time. In 1946, there was only family zoning in the then-township of North York.
To put it in perspective, North York is not far from downtown Toronto. It’s approximately 15 to 20 kilometres (9 to 12 miles) from the CN Tower, depending on your exact starting point in North York. The driving time can vary between 20 to 40 minutes or more depending on traffic conditions, and the TTC usually takes about 30 to 45 minutes.
That bylaw meant that people who were not related to each other couldn’t rent together. You see where this is going. Single women with lower incomes, if they wanted to live outside the home, often had to pool their financial resources to rent a place.
In 1971, four women rented a $300-a-month basement apartment in the township. Someone ratted them out and they were told they had to move out or face a court case. You can read more in the article by Cheryll Case but the law was finally overturned in 1974.
Laws and other legal decisions have either accidentally or deliberately been used exclude single people. Those reasons have included a historical preference for the nuclear (heterosexual) family and post-war economic policies that favoured families, boosted birthrates and increased economic growth. We see this now with several countries like South Korea, Japan and Italy focusing on policies that encourage marriage and procreation within a nuclear (again, mostly hetero) family.
Other reasons include efficient resource distribution. Married couples often benefit from economies of scale (e.g., sharing housing costs, utilities, and health insurance premiums), so offering them tax incentives or benefits was seen as encouraging stability and saving resources. Single people, without the same household structure, were seen as more self-sufficient and not needing the same level of support. Excuse me, what? Who do you think is looking after all those cats while being the primary earner, chef, cleaner and events coordinator?
Even today, if you want some kind of financial security, especially in the U.S., it’s still best to get married, according to this March 2024 article from Vox.
So what else has affected single people financially?
Marriage penalty and bonus (U.S.): In the U.S., the tax system provided bonuses to couples, depending on how income was divided between spouses. Single people, however, were often at a disadvantage because they couldn’t benefit from tax breaks available to married couples, such as filing jointly, which could lead to lower tax rates.
Canada’s family taxation rules: Canada's tax system has historically provided benefits to married couples through spousal tax credits and income splitting. Single individuals often lack access to these financial benefits, which can create a higher tax burden for those living on their own.
In the U.S. and other countries, Social Security survivor benefits are typically available only to spouses or dependents. Single people don't have the option to pass their benefits on to another person, meaning their lifetime contributions to these systems vanish upon death, without benefiting a survivor. Also, this may also happen to you if you’re in a common-law relationship, so check your state.
Similar issues occur in Canada's Old Age Security (OAS) and the Canada Pension Plan (CPP), where spousal benefits apply, but singles are left out from receiving equivalent support.
Back to housing. While a single person could theoretically afford a place to live, housing policies can favour families or married couples. Many countries have subsidized housing programs, rental protections, or co-op housing that give priority to married couples or families, making it more difficult for single individuals to access affordable housing.
One example is the Viet Nam Association of Real Estate Brokers, which suggested that families with two kids be prioritized for homes at social housing projects. Part of that to encourage people under 30 to marry to have kids.
In some countries like South Korea, single people might be overlooked in mortgage approvals or rental applications in favour of families or couples who are perceived as more stable or if they’re lower income, are perceived as in more need.
Things like this annoy me because it’s not uncommon. They cause uncertainty financially, mentally and emotionally. If you’re worrying about this, how can you feel financially secure?
How can we change this? One way to change these policies is to vote for people who understand that single people are part of the community.
deep breath
This week’s readings:
Income inequality gap widens in Canada, as wealthiest 20% increase net worth at fastest pace: StatsCan (Yahoo Canada)
Great interactive piece from the Toronto Star. How investors wrecked havoc on Toronto’s condo market.
Three women share the cost of an expensive break-up. (The Cut, paywall)
My spending trigger is FOMO. Here’s how I keep it in check. (CNet)