Stephen Harper promises tax breaks for service clubs

NDP accuses Tories of “tinkering” with tax measures while neglecting the wider economy.

Thestar.com
Aug. 23, 2015
By Ben Spurr

Conservative Leader Stephen Harper unveiled yet another targeted tax credit as part of his re-election bid on Sunday, this one for members of volunteer service clubs.

At a campaign stop in Clarence-Rockland, Ont., just east of Ottawa, Harper announced, that if re-elected, the Conservatives would make membership fees for groups like the Kiwanis Club and the Royal Canadian Legion eligible for tax credits.

Harper told the crowd that joining service clubs is a crucial way Canadians give back to their communities, “and we want Canadians who volunteer their time and their skills and their energy to be recognized and supported in every way possible.”

Justifying his party’s latest tax break proposal, Harper said the Conservatives “know that Canadians know better than any government how to spend, invest and yes, donate their own money.”

David Hetherington, president of the Rotary Club of Toronto, welcomed Harper’s announcement, saying it might encourage more people to join clubs like his. “I do think it’s helpful, and I think it’s probably recognizing the benefit (of service clubs) to society overall by giving volunteers a break,” he said.

According to Hetherington, the Rotary Club of Toronto has just under 200 members, who pay between $750 and $1,000 a year in fees.

The NDP’s Peggy Nash, who is running for re-election in the riding of Parkdale-High Park, said her party values the charitable work done by service clubs but felt that Sunday’s announcement was an attempt by Harper to distract the public from the Mike Duffy trial and Canada’s slowing economy.

She said that an NDP government would cut taxes for small businesses and grow the manufacturing sector, which she described as “concrete economic measures that ... ultimately will help Canadians far more than tinkering with tax credits.”

Chrystia Freeland, the Liberal candidate for the University-Rosedale riding, accused Harper of engaging in an economic policy of “pinprick, micro-measures” while showing “absolutely no willingness to engage with the economy as a whole.”

Under Harper’s plan, which would come into effect in 2017-2018, service club members would be able to claim up to 29% of their membership costs under the charitable donations tax credit, depending on how much they already donate to charity.

A person who donated $300 to charity and paid $200 in membership fees would earn a tax credit of $117. According to the Conservatives, the measure would benefit one million people, and cost $30 million a year.

The policy is only the latest targeted tax break unveiled by the Tories so far in the campaign. Since it began three weeks ago, they’ve promised tax credits for prospective homeowners, adoptive parents, and people who renovate their homes, as well as vowing to maintain the tax-free savings account.

After his announcement on Sunday, Harper was again asked about Duffy’s ongoing trial for fraud and breach of trust.

Last week Benjamin Perrin, a former lawyer in the Prime Minister’s Office, told the court that Ray Novak, Harper’s current chief of staff, was in the room when Nigel Wright said he would give Duffy the money to repay inappropriate housing expenses Duffy had incurred as a senator.

Asked whether Novak knew about the payment and whether he told Harper, the Conservative leader declined to answer, saying that he wouldn’t comment on court testimony.

“Mr. Novak has been very clear with me,” Harper said, without elaborating on what Novak told him.

He repeated his assertion that Wright, who is his former chief of staff, and Duffy were the only two people responsible for the plan to repay Duffy’s expenses.

Promises so far

Weeks before the election campaign began, the Conservatives started to roll out tax breaks and other benefits targeted to specific demographics. The party says the policies will help the Canadian economy, while critics say they’re “micro-measures” designed to shore up votes.

• Universal Child Care Benefit: Two weeks before the election was called, the Conservative government mailed out $3 billion worth of Universal Child Care Benefit cheques to parents, worth up to $520 per child.
• On August 4, Harper pledged to reintroduce and make permanent the Home Renovation Tax Credit, through which homeowners could earn back up to $600 on renovation costs between $1,000 and $5,000.
• On August 12, Harper announced the Conservatives would raise the amount aspiring homeowners could withdraw from their RRSP’s without paying taxes under the Home Buyer’s Plan, from $25,000 to $35,000.
• On August 20, the Conservatives promised to increase the amount of adoption-related costs eligible under the Adoption Expense Tax Credit, from $15,000 to $20,000.