Tax credits are incredible – for politicians and the public alike. Politicians love them because they’re easy to promise, and save them the headache of implementing social programs that actually help people, like childcare, public transit and affordable housing. Voters like them because they think they’re getting something, but often that’s not true, or not much. And wealthy people like them, because they’re usually the only real beneficiaries.
The Liberals are proposing tax credits for home renovation, labour mobility, career extension, and even home appliance repair, while expanding six existing credits, and introducing a First Home Savings Account, which will cost more than a billion a year.
The Conservatives are promising at least ten new tax credits, most for business, including to “rebuild main street,” accelerate investment, support Canadian vacations, and boost mental health coverage, while expanding existing tax credits and loopholes for flow-through shares, stock options and patents. They also propose scrapping the national childcare plan for refundable tax credits (which would only help rich families), pulling out of the upcoming global minimum corporate tax deal, and even a tax credit to reduce contact between wild and farmed salmon (lobbyists, take a bow). Their plan isn’t costed yet, but all their promised tax breaks will be very expensive, and mean their balanced budget promise will result in significant real cuts to programs and public services.
The Bloc Quebecois announced tax credits for graduates and immigrants who settle outside of major centres. The NDP proposes a new tax credit for graduates to work in designated rural and northern communities, expanding tax credits for volunteer firefighters and home buyers, and making the caregivers tax credit refundable. Though, to the NDP’s credit, pun intended, it has a strong stance on closing loopholes and fighting tax dodgers, but that shouldn’t make the tax credit bandwagon any more attractive. (The Green Party still hasn’t released its platform, or made many policy announcements.)
Voters beware: A $1,000 federal tax credit only provides a maximum of $150 at a rate of 15%. And how much do you think those public services and infrastructure cost, like roads, buses, trains, and federal support for provinces and cities? Your services are worth way more than tax credits. When politicians promise to cough up some credits, don’t give them any credit!
{Photo by Emil Kalibradov on Unsplash}
