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?
posted by sze mae at 12:18 AM
11 Comments:
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I agree with your point of view that the tax credits might end up worsening Canada's economy rather than bringing benefits, but as a student who uses the public transportation quite often, I'd have to say I'm quite pleased with the idea. In fact, I think that any type of economic cause used to aid the environment is one worth spending because we need it now more than ever. I also think that it's not necessarily deepening our debt, because more people would be inclined to use the public transit. It's like having a sale/discount at a store. You lose money, but in the long run the increase in demand makes up for that money loss.
-PAULINE LEE
Even though I don’t buy a monthly bus pass, I know many that do. I do buy those prepaid bus fares. I am glad that the government is willing to get a tax credit of 16%. Not only that, there are newer, more efficient buses being produced and tested out right now. The government is finally addressing environmental problems that are arising. It may seem like using public transportation more often may not help all that much, but I think that every bit counts. People would be more environmental friendly and think about other areas that they could improve on in their lifestyle. Even if the government is losing on revenue, they gain in other areas. I’m sure that eventually, in the near future, more plans will be initiated to solve the problems of global warming.
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From what I understand (through a discussion during a Marketing 12 class), a market research concluded in the results that voters are more concerned with environmental aspects nowadays. Of course, now there’s a scramble to improve our environment in order to win over the citizens of Canada. One of the reasons as to why government spending is so large is due to political promises and schemes that help ensure their stay in power. Therefore, although they may be adding to the national debt, they are attempting to invest in a plan that will have a long-term effect, hopefully.
I believe the opportunity to received a tax credit off of the transit pass is less costly than what it would be to decrease the fare for all people. They could lose more than just a $150 per person if they were to decrease the individual fares. When compared to the very few that pay for monthly transit passes to those that play for individual rides, what they lose out on is minimal. They may be losing a little because of transit, but the government will just find another source of tax revenue in another area—while they stay in favour for those that support a better environment, which is quite a large percentage.
C.Cheng
I have just started to buy a bus pass this month and I am glad that the government is giving a 16% tax credit. Now I will consider to continue buying bus passes and if I do, I'm sure many others will think the same. This will prevent more people from driving cars and releasing more pollution into the air. Global warming is affecting the whole world and anything the government is doing to help the cause is a big step to improving conditions. As a panel of UN scientists say, gas emissions must decline by 2020 if global warming was to be halted. You make a good point about the government losing $150 in revenue for each person, but I think it is worth it. The government can obtain money through other means, and preserving a healthy environment is more important.
Colin Ng
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I don't personally pay for the bus passes but my mom does and she gets back her tax credits for it. It might not be good for the economy as a whole but if my parents are getting back money then I have no complaints. I think tax credits are a good thing because it makes people want to take public transit more and in turn benefit the enviroment. As Pauline said it might not worsen our debt because the increase in demand might make up for money loss.
^ Carrie Lam
Wow, the government is willing to get a tax credit of 16%. Even though Harper may really have other intentions, who cares about stuff that has not yet happened. At least I am pretty sure there are a lot of people who appreciate the tax credit of 16%. Like Michelle Lui said, there are also more new buses produced and being tested out right now. We can see that Harper is making an effort to try and make a change to help the environment. Yes the government might be earning less in this field of business, yet they can still gain revenue from other sources in other fields of businesses.
Although tax credits for the bus passes may not be good for the economy, I think it's an excellent idea to improve our environment. Although I do not purchase bus passes, I know many other people who do. By giving an incentive to take public transit will allow people to forget about driving their huge cars to save gas and ultimately, the world! I can understand that by giving a tax credit, the government loses money and by the decreased amount of people driving wwould make the government lose out on gas tax money as well. However, in the long run, I think it costs less than to fix the problem of global warming in the future.
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