While you are all out spending your hard-won cut in the GST, one little note:
The after-tax cost of the Metropass just went up from $84.50 to $85.00. Why, you ask?
The tax credit for passes is tied to the tax rate on the lowest income tier, and this will go back to 15% from 15.5% according to today’s announcement. This means that the rebate per $100 Metropass just went down by 50 cents, or $6 over the course of the year.
Also, of course, this has always been a non-refundable credit, and so those who have no taxable income pay full value for a pass while people like me get the subsidy.
It’s no secret to regulars here that I don’t believe in tax-based incentives and prefer that funding go directly to agencies that deliver service. If the tax rebates for all of the roughly 250,000 Metropasses sold each month came to the TTC as a subsidy, they would receive about $45-million annually from Ottawa. This would contribute to better service for everyone, whether they used a pass or not.