Article content

Ahead of the 2006 election, the federal Conservatives announced that, if elected, they would implement or expand a variety of tax credits. Among the proposals the Tories made in that campaign: An Apprenticeship Job Creation Tax Credit, worth up to $2,000 for a business that took on an apprentice; a child fitness tax credit of up to $500 per child enrolled in sports or fitness programs; and a $500 tax credit for post-secondary students to defer the costs of textbooks.

There were more, but you get the idea. And there was more where those came from. In the years since, the Tories have sprinkled new or enhanced credits everywhere there were a few votes to be won: a tradesperson’s tools deduction, a volunteer firefighter’s tax credit, even a bump to the meal tax deduction limit for long-haul truckers.

We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or National Post editorial board: A winning proposal for tax reform Back to video

Whatever political utility they may have, tax credits needlessly complicate our tax code, distort economic decisions and cost the federal government billions

It’s not hard to grasp why the Tories have fallen into this pattern: Tax credits are an easy way for a government (or a party desiring to form a government) to offer up a few trinkets and baubles to every conceivable group, no matter how big (parents) or small (peckish truckers). But they’re generally terrible economic policy. Whatever political utility they may have, tax credits needlessly complicate our tax code, distort economic decisions and cost the federal government billions.