Report recommends tuition tax credits changed to grants
October 31, 2013
Canada’s and Ontario’s tuition and education tax credits should be converted to grants, says a recent Institute for Competitiveness & Prosperity (ICP) paper on changes that should be made to the Canada and Ontario tax systems. The report cites a Canada Millennium Scholarship Foundation study, which finds the credits are ineffective at encouraging young people to pursue PSE, and says that they do a poor job of supporting those who are most in need of the income support, because their benefits are realized in the future. Converting the credits to grants would reduce the upfront cost of tuition by about $1,900 per student, says the report. ICP News Release | Full Report
