Postsecondary tax credits cost the federal and provincial governments billions of dollars each year, but are not distributed equitably and may have no proven effect in boosting enrolment, according to a report released today by the C.D. Howe Institute. In “What You Don’t Know Can’t Help You: Lessons of Behavioural Economics for Tax-Based Student Aid,” author Christine Neill finds flaws in the design of postsecondary tax credits  and recommends they be better-targeted at low-income families that need them most. 
Canada’s federal and provincial governments spend a lot of money subsidizing postsecondary students, notes the author. Tuition and education/textbook tax credits, in particular, cost the federal government alone around $1.6 billion in 2012 – a sum greater than the net cost of the Canada Student Loan Program. 
For the report go to: http://www.cdhowe.org/what-you-dont-know-cant-help-you-lessons-of-behavioural-economics-for-tax-based-student-aid/23461. Read more...