A quick look at some of the recent promises shows that our next government is likely to be an accountant's dream. Instead of actually investing tax dollars in different programs we keep hearing about tax credits and tax breaks. So save you receipts
and we will all get money back at tax time right? Wrong. Lower income earners who might use cost as a deciding factor when it comes to putting their kids into sports programs or buying a bus pass are already not making enough to pay tax so they will get nobenefit. Middle income earners will get the benefit back at the end of the year but likely can't afford to pay now and wait to get their so few will change their spending habbits. The people who will benefit most will be those who already use these services and are making a bit more money and using every loop hole to avoid paying tax. They already have the accountants to do the additional paperwork on their taxes and remind them what reciepts to save. It is doubtful that tax credits will increase participation in any of these important initiatives.
If the goal had really been to increase our use of programs like public transit the answer was never tax credits. Want to put more butts in the seats on the bus? Common sense says instead of a tax credit how about spending the same money on improving service and reducing fares? Better service and lower prices always attracts more customers. Give any shopper the choice between paying $50 now or $75 and waiting for a $25 rebate in the mail and you will have your answer. Especially since reducing upfront costs puts these things in the reach of people who might not have been able to afford them before.
The same could go for many the other tax credit promises. The simple truth is tax credits are simply a way of paying lip service to the things that matter while playing Robin Hood in reverse.
