Post-Secondary Tax Credits
Since the mid-1990s, the federal government has increasingly looked to tax expenditures as a substitute for directly allocated student financial assistance. As defined by the Department of Finance, tax expenditures include ‚Äúexemptions, deductions, rebates, deferrals and credits‚ÄĚ that serve ‚Äúto advance a wide range of economic, social, environmental, cultural and other public policy objectives‚ÄĚ. In total, federal tax expenditures for postsecondary¬†students have grown from $566 million in 1996 to more¬†than $1.63 billion in 2007.1 This represents a 288% increase and more than the total amount the federal government will spend on direct student financial aid this year. Despite their large price tag, federal tax expenditures are a very poor instrument to either improve access to post-secondary¬†education or relieve student debt. Moreover, since everyone who participated in post-secondary education qualifies for tax credits regardless of financial need, the federal government is diverting vast sums of public funding where they are not necessarily required.
If you would like to be involved in this or any other campaign, please join the GSU External Relations Committee¬†by contacting your¬†VP Communications.