Budget Notes
#1
Budget Notes
The public transit tax credit — a so-called boutique tax credit introduced by the previous Conservative government — will be phased out on July 1. The credit reimbursed public transit users for 15 per cent of their eligible expenses on monthly passes and other fares. Ending that tax break is expected to save Ottawa more than $200 million a year.
I know some people choose to use public transit, but I would guess that the majority of transit users choose not to drive for environmental reasons or because they is poor and can't afford a car. Great move liberals !!!!
I know some people choose to use public transit, but I would guess that the majority of transit users choose not to drive for environmental reasons or because they is poor and can't afford a car. Great move liberals !!!!
#2
Re: Budget Notes
The public transit tax credit — a so-called boutique tax credit introduced by the previous Conservative government — will be phased out on July 1. The credit reimbursed public transit users for 15 per cent of their eligible expenses on monthly passes and other fares. Ending that tax break is expected to save Ottawa more than $200 million a year....
But then I decided to do some maths.
Ottawa's population is 883,391. Now if every person in Ottawa was to qualify for this - obviously they don't, but bear with me - then their share of $200m would be $226 each.
If this is 15% of their annual bus fares, then 100% would be $1506 and this translates to $29 a week.
That's pretty much a fare of $3, twice a day, five days a week.
I very much doubt that every resident of Ottawa travels to work by bus at that cost.
I very much doubt as many as half the population does given all the kids of school age and younger plus all the drivers and other non workers.
Even if it was half, that would mean bus fares of almost $60 a week. $6 every time you board a bus? I think not.
I don't know how many bus users there are in Ottawa. Even if a quarter of the population that would be $120 a week and that's ridiculous.
So if one substitutes the real cost of bus fares and the real number of bus users and subtracts that from $200m the costs of running the scheme must be absolutely astronomical and better value for money must surely be available in other ways.
#3
Re: Budget Notes
I'd guess that they mainly do it because it's quicker and you don't have to pay to park when you get there. I suggest that a glance at the car park at the Oakville GO will shatter the idea that commuters are particularly poor.
#4
Re: Budget Notes
Ah...does this mean that the reference to "Ottawa saving $200m" meant Federally rather than Ottawa, the city of? And train, not just the bus?
If so, then scrub my maths in the earlier post.
If so, then scrub my maths in the earlier post.
#5
Binned by Muderators
Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
Re: Budget Notes
Poor people do not pay tax, so a non-refundable tax credit is of no benefit to them.
#6
Re: Budget Notes
The decision means that TTC passengers will no longer be eligible for a tax rebate on monthly Metropasses, weekly TTC passes, and weekly GTA passes. It will also impact passengers who use transit agencies across the GTA, including GO.
This year, Metropasses cost $146.25, which works out to a discount of $21.94 for one pass, or $263.25 for a year’s worth of passes.
The elimination of the tax credit could also hit the TTC’s bottom line.
Is odd how they add carbon tax to gas and keep saying we should all use public transit to save the Ozone then take away this small redemption to riders as a reward lol
This year, Metropasses cost $146.25, which works out to a discount of $21.94 for one pass, or $263.25 for a year’s worth of passes.
The elimination of the tax credit could also hit the TTC’s bottom line.
Is odd how they add carbon tax to gas and keep saying we should all use public transit to save the Ozone then take away this small redemption to riders as a reward lol
Last edited by magnumpi; Mar 23rd 2017 at 1:21 am.