KBR Poll:  A Deafening No – Education & Textbook Credits Should Stay

Over 500 respondents weighed in to Knowledge Bureau Report’s March poll with a definitive message to the federal government: 95% said it was a bad idea to cancel the education and textbook credits in the 2017 tax year. The commentary was voluminous and frank:

From Sarah M.  Absolutely not! Education is expensive, and textbooks cost large amounts of money over and above tuition. The government needs to realize that this amounts to a tax increase on students and those who support them. Increasing taxes on students means it takes them even longer to pay off their student loans and start building for the future. Government should be increasing tax breaks for students, not removing them.

Bernice H. agreed wholeheartedly.  Education is absolutely necessary for advancement of our young people. Leave the tax credits in and also replace the child fitness credit!

So did Jo R. who concurred:  This is a really bad decision, and will hurt students and their families. Most students, even those who transfer credits to a parent or spouse, end up with a decent carry-forward to be applied against future taxes. So, in the year of graduation, when a student is starting out and trying to become self-supporting, this credit means minimal tax paid that year, and a refund which is most welcome (even if only for paying down student loan debt). Students have worked hard; they deserve a bit of a break as they head out into the world.

Martin added:  Education is an expensive endeavor these days. Students, and parents (especially with more than one child to put through school) need every break they can get. Too many students come out of school into a tough job market and with a heavy debt load. It’s harder to get ahead and start saving when you have to get rid of what’s behind first. Textbooks are expensive. A little help at this stage can make a big difference for the future.

Yvonne D. thinks we’re going to be in trouble if we don’t get this right:   I think it is terrible that our new government has taken these credits away! They should be doing as much as possible to help all Canadians get a good education. We will have more and more uneducated people who would rather live on social assistance than take a low-paying job, which will be all they can get. Our country is going to be in trouble as our educated workforce retires, as there will not be enough acceptable replacements!

Here's Katherine on priorities:  I simply cannot understand the justification behind removing the education and textbook amounts, which were so beneficial to so many who put a priority on receiving higher education.

It’s a Double Whammy says Sandra.  The fact is, this places a further squeeze on students and parents. Doing this without increasing the transfer amount to parents is a double whammy. This is not good for the middle class or the poorer taxpayers. Student loan debt is growing with no relief in sight.

Denzil F. added some criticism for politicians.  Surprising that the Ministers of Finance and Canada Revenue Agency and their departments could collectively come to this wrong, out-of-touch direction. Credits could be clawed back for high taxable income levels. Now we have to suffer through the constant blathering by the opposition which of course will have little effect on this misguided move.

Anne M. went further:   If the PM stopped using the term “middle class,” which does not actually exist, and referred to “middle income Canadians,” he would better see that the basic tax credits for education, etc. are extremely helpful to that group. They’ve eliminated the tax credit for public transit now too! Short-sighted!

Maria, in fact, scolded:  That was one of the nicest perks of the federal government, which helped students and parents/grandparents. Shame on Trudeau.

Susan had empathy for the students.  Students have a hard enough time while going to college and university. Why would the government take away some of the costs for books? I feel sorry for the students going to college and university who are unable to get support from their family, as their family may not have the financial ability to assist their children. Students who are trying to continue their education for a better future are not being treated fairly, in my opinion.

Virginia H. pointed out some tax complexities:  How are we supposed to know when the bursaries are tax-free without full-time education amounts? (editor’s note:  the criteria used for the removed education amount will stand for these purposes).

Tim K. thought seniors should pay more instead:  This is not fair; students and their families supporting them need all the help that they can get. The Education and Textbook Tax Credits should NOT be taken away, and they should remain transferable to supporting parents. In fact, I think the $5,000 cap on transfers to parents should be removed, as the parents are often the ones footing the bill. I think instead they should take away Pension Income Splitting, as most seniors don’t need that anyway and they get too many tax breaks as it is.

Joanne B.  says make it easy to learn:   It is unfortunate that our government is slowly cutting out things as they please. We need to encourage reading and learning.

Adelard speaks to the challenges of a new economy:  We are living at a time when technology is eliminating many jobs. Why would we want to make it harder for students to get an education? I do not support the cancellation of credits for textbooks and/or tuition fees. — (Editor’s note: the tuition fee credit is not being cancelled, just the education and textbook amounts.)

Stacey worries about student debt loads:  This is only going to add to the future debt of Canadians. As it currently stands, students spend years going to school to get an education, only to walk away with a degree that in most cases only assists them in getting in the door for an interview. They then need to compete with other inexperienced candidates, and if they are lucky, they walk into a job paying little more than minimum wage. Meanwhile the payments of student loans, lines of credit and other student debt, only compound the financial crisis that they walk into, leaving them unable to get a head start in life.

Royston J. thinks more globally.   Good education is necessary for the advancement of our country and the world. We need to provide every kind of support possible.

Doris W. was miffed:  Removing the education amount is an asinine move. The price of books, travel expenses, room and board… none of that has disappeared or decreased. They are hurting the people who can least afford the hit. Taking away this credit, plus the credits for child fitness and arts—for a party that says they are all about the middle class—they are not proving it with the policies they are bringing in. A student that attends school for a four-year program can come out of school and have no income tax for at least their first year working. That is a great boost when you are starting to pay back student loans.

Ron S. thinks the move is elitist.  Post-secondary education has become a big business in Canada and thus increasingly more expensive for students. Reducing or eliminating tax credits means fewer people will be able to afford it. We will see universities become an option for the wealthy only.

Gerald M. says it’s anti-education:  It is bad enough that the deductible tuition makes up only a small part of the fees paid. To disallow the education amount and the textbook amount is totally anti-education. The textbook amount does not even cover the costs of textbooks in most disciplines. Educational institutions have had to resort to a variety of fees, which are not tax deductible, in order to compensate for chronic under-funding from government. Losing these deductions will only further make post-secondary education an elites’ option. —Lina opines:  Good education is very important. Our government should provide more help to our young students. Education is necessary for a foundation to build a good future.

Malcolm points out the need to address the costs of inflation.  Education costs are going up much faster than inflation. So students need all the help they can get with the growing gap.

Some additional thoughts:

From Sandra C. I do not believe that higher levels of education should be completely free of cost, but I do wholeheartedly believe that significant funding should be made available by society to support higher learning in all fields of study, including the arts.

David S. University expenses including tuition, textbooks and travel should be tax deductible and transferable.

Diane.  I believe education should be free for all citizens. Education is what provides a country’s citizens with the foundation to build a future free from poverty.

Gale.  As usual, take from the little guys and give to the rich. I am against the removal of that credit as well as the Children’s Fitness and Arts amounts. We need to promote our children and young adults to be productive in society. I agree with others that education should be free (as well as no user fees and transportation fees for children). There are other countries that educate their people without cost.

Final words go to Don P.  Advanced education is absolutely a necessity for a productive workforce. Everything from quantum physics, advanced medicine to child care, project management and plumbing all require specialized education and training. If we don’t assist our population to advance their knowledge then we can end up like the USA with large sections of their population not even participating in looking for work, especially in the rust belt and coal mining populations.

A good part of the USA experience is that education for basketball players, football players and other sports participants, who may end up making millions but contribute only distractions to the USA population, is free, but not for the people who want to be teachers and professors and researchers. Hopefully the liberal government will understand this and replace the textbook and education tuition credits at least as high as they were in the past.

Thank you for participating in last month’s poll. For April, let us know your thoughts on this question:

Do you agree with the 2017 Budget proposal to cancel the deferral of Work in Progress for accountants, doctors, lawyers and other professionals?

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