Tag: Tax Credits

Higher Education Tax Credits

Last week, CD Howe released a very good paper (available here) written by my colleague, Christine Neill, on the subject of tax credits in higher education.  It’s an important piece, because it not only puts in one place a number of key factual aspects of tax credits (what they cover, how much they’re worth), but it also places them in the context of research on behavioural economics.  Given what we know about behavioural economics, she asks, what should we expect

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How the Zero-Tuition Crew Could Learn to Love Tax Credits

So, let’s say you’re among those who clings to the idea that tuition isn’t just a massive give-away to upper-income families.  Let’s say you really, really believe that tuition – sticker-price tuition, none of these “net price calculations”, thank you very much – affects access.  How would you go about gathering evidence for your point of view? Ideally, of course, there would be some data showing that, as fees went up, participation went down.  Problem is, the data doesn’t show

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Grants and Net Prices

Yesterday, we saw how tax credits lowered net prices by refunding students (or their families) roughly one out of every three dollars spent on tuition.  But that’s not the whole story, because there are a lot of university students who also get some form of non-repayable assistance (i.e. grants); for them, tuition is even lower. Let’s start with Quebec, where net tuition after tax expenditures is a mere $1,555.  Data from the latest Aide Financiere aux Etudes annual report, adjusted for known changes

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The Impact of Tax Credits

One of the many ways that Canada stands out as unusual in its financing of higher education is the degree to which its subsidies to students and families runs not through loans or grants but through tax relief.  Well over $2 billion/year goes out to students that way; for full-time university students in Canada last year, tax credits on average amounted to $2,200, or almost a third of the sticker price. But given how central tax credits are to our

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So, This Obama Plan, Then (Part 1)

Canadians have few – if any – original ideas when it comes to education.  Generally speaking, we tend to reuse American ideas a few years after the’ve gone viral down south.  But what with all these interwebs and the Twitter these days, the lag time on this is getting shorter and shorter.  That’s why it’s definitely worth paying close attention to the recent Obama initiative on college costs: there are a lot of themes in that plan which have resonance

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