There is nothing like April in Delta. The sun is shining, the Delta Triathlon takes place, the flowers are blooming and the cafe at Centennial Beach is busy. It's almost perfect, spoiled only by the federal income tax deadline.
No one likes paying taxes, yet there is constant pressure for the government to do more for people without increasing taxes. I don't know how often I hear calls for reducing poverty, universal daycare or a charity looking for government support. By the way, rich people aren't paying enough taxes, according to some. In other words, take from the rich and give to the poor.
As the federal government has been getting closer to having a little wiggle room for reducing taxes, I propose increasing the child tax benefit significantly, along with increasing the deduction for charitable giving. First, increase the tax deduction for charitable donations. In a way, it is taxing the rich, but giving them a deduction at the same time. Charities are always looking to government for support, but if there is a bigger incentive for people to give, they are more likely to make a donation.
I know a few people who could be considered rich. For the most part, they find ways to pay less tax, within the rules of course. That's how they became rich. They also like to give to charities. If we combine what rich people already do - save taxes and give to charity - they will do more of it.
The best part is, it only costs government a small percentage of every dollar donated, yet the donor will be giving much more than they would be paying in tax. Plus, good charities are very productive with their donations, and can really stretch a dollar. Just ask Deltassist.
Over time, government can reduce the amount it transfers to charities, and use that to partially fund an increase to the child tax benefit.
I propose this for a number of reasons. Poverty is worst when it impacts children. The child tax benefit is paid based on the number of children, and is only clawed back as income rises. If you have a good income, you get less of a benefit cheque. Therefore, those who need support the most get it.
The increased amount from the child tax benefit could be used by families to fund daycare, instead of creating a government-controlled daycare system. I believe that a national $10/day daycare program will cost much more than anticipated, as people will take advantage of the program who aren't participating now. I'm guessing the current proposals are based on current daycare levels to make it sound affordable. The true impact won't be felt until it's too late.
Increasing the child tax benefit also allows parents to have a bit more freedom for one parent to stay home with their children. Daycares are great, and the people who work in them are wonderful, but the best place for a child to grow up is at home with a parent. I don't have any studies to quote on that, it's just a feeling. This would help achieve the same result as income splitting for couples, but provide a broader benefit for families who need more help.
Robin Hood would be proud.
