Friday 14 August 2015

I’ll have a double-double tax credit with my income splitting, please



            I’m becoming a consumer voter. An entitled taxpayer. A “What’s in it for me?” citizen. 
            I never thought the day would come.
            But as I peruse each party’s platform this election, I find myself examining them purely in self-interest, like I’m scanning a menu at Tim Horton’s.
            Hmmm… income splitting is certainly good for my single-income family – I’ll take one of those.
            The Canada Child Benefit looks okay…. Probably richer than the universal child care benefit.  Give me two.  Oh, I have to have two kids?  Okay, one is fine.
            Fifteen-dollar-a-day daycare looks interesting but not relevant to me…  I’ll pass.
            Home renovation tax credit?  Terrible public policy, but yes, I’ll take that as well.
            And so on it goes.  The politicians have created a new suite of goodies for the middle class.  They’ve come up with a host of tax credits and subsidies that funnel your taxes back into your pocket.  Do you deserve it?  Of course you do! 
            Our society has become so consumer-oriented and lethargic, in some cases, that these are the only things keeping us interested in way-too-long election campaign. 
One could take the perspective that this is simply a reflection of our country’s stability.  While some countries have real issues to deal with, like whether or not to declare bankruptcy, we’re debating whether we want a home improvement tax credit or a bigger monthly cheque for our child’s activities.  Yes, it’s tough to be a Canadian.
            Just ask my nephew from Ukraine, who’s willing to leave everything behind for the opportunity to work and live in Canada.  He’ll tell you we have nothing to worry about.  No wars, no economic collapse, no political upheaval.  “It’s Can-A-da” he likes to say (with special emphasis on the “a”) when commenting on the many trivial issues we like to debate.
            Now if he can just jump through the many hoops of our immigration system, he’ll be readier than many Canadians to contribute to our society. 
            So the good news is we’re doing pretty good here in Canada.  The bad news is these election goodies can create a short-sighted approach to our future.  Whether it’s growing the economy or action on climate change, our focus becomes misplaced on what we can gain from the system today. 
And with each of these mini-tax breaks comes a cost, both bureaucratic and economic. If tax breaks are really what citizens want, why not just lower income tax rates and let people spend on what they want and need?   Or put the money into public programs that work but require greater funding.
            Despite four years of significant federal cutbacks, budget deficits and a current economic downturn, all leaders are acting like we’re awash in cash.  If we took the time to actually cost out the goodies, we might just realize that our funds could be spent better elsewhere or maybe not at all.
            And we might even turn our attention to bigger things... like whether the Blue Jays can make a run for the World Series.  Hey, even I'm back on that bandwagon.

1 comment:

  1. Lower taxes benefit the rich, as they get to keep even more of the wealth. And, yes, go Blue Jays!

    ReplyDelete