Friday, February 23, 2007

Chapter 4: Harper encourages public transport[ http://www.cbc.ca/news/story/2005/12/29/ ]


"In this article, the Conservative government, currently run under Steven Harper, states that people who use public transport services may be eligible for tax credits. Public transport has become a crucial part of many Canadian lives, providing a convenient means of travel. However, a large portion of those who use public transportation services use it to get to work or school. Many people can't afford to buy and maintain a car, which is why this new system of tax credit can be appealing to citizens. For those who purchase monthly public transit passes can get tax credits of 16%. This means that approximately up to $150 can be saved in a year. Steven Harper estimated that this could increase public transit usage by 25% - 50%. In the long run, Steven Harper adds, it will help to diminish the rate of global warming and reduce pollution.

The government setting up this new system shows that in a densely populated area, government assistance and services are depended upon. Canada is a post industrialized country, with growing cities and technologies everyday. According to Wagner's law of increasing state activity, the government is spending at a faster rate than the rate of which goods and services are sold at. In this case, the government isn't necessarily putting money into the system, but rather not collecting as much tax. $150 may not sound like a huge amount to some, but at the same time, when $150 builds up over several people, the government is actually losing out on a good source of revenue. How does the government claim this amount of money back? By borrowing from others? Wouldn't that just deepen Canada's debt?

However, Harper may have other intentions. Above the world of taxation, there are other things that are more important. Issues are arising due to the increasing rate of global warming. Reducing gas emissions from cars can be a big help when trying to decrease the amount of pollution, and encouraging citizens to use the public transport system is a good way to start. The tax credits in this way are used to be consistent with economic objectives. Instead of increasing tax to limit the sales or usage of a certain product, the system is lowering tax to encourage usage of pubic transit. I believe that this decision is socially responsible. True, it may cause a loss in government profits, but at the end of the day, which is more important? Taxes or potentially, your life?