Resolution - 2008.05 Submitted by: Manitoba Provincial Council Whereas, Rural post-secondary students residing outside the range of public transportation who must commute to attend urban post-secondary institutions do not qualify for public transit pass tax credits when filing income tax; and Whereas, Section 118.02 of the Income Tax Act allows urban students to claim public transit pass tax credits; and Whereas, Although the intent of the public transit pass tax credit is to reduce greenhouse gas emissions, one result is a tax credit inequity between urban and rural students; and Whereas, Independent and federal government studies indicate that post-secondary participation decreases in direct proportion to the distance to the educational institution; therefore, be it Resolved, That the national council of The Catholic Women's League of Canada, in 88th annual national convention assembled, urge the federal government to allow transportation tax credits for rural post-secondary students who must commute to attend post-secondary institutions in urban areas.
Rural post-secondary students residing outside the range of public transportation who must commute to attend urban post-secondary institutions are not eligible for a transportation tax credit. In addition, they are also faced with parking fees. ?Researchers argue that distance is an important factor when it comes to gaining access to post-secondary education? (McCall, p. 21). Independent research studies, as well as those conducted by the federal government of Canada, reveal a correlation between attendance at post-secondary education and the distance from said institutions. ?Students living beyond commuting distance from a post-secondary institution (80 kilometers or more) have a participation rate of 11 per cent, less than half the proportion of their counterparts living within 40 kilometers of an institution? (Frenette, Too Far, as quoted in Murray, p. 5). ?Rural versus urban location also matters; fewer rural youths plan on attending post-secondary institutions. In most cases rural youths have to leave both the parental home and their home community to pursue post-secondary education. In contrast, most urban youths have at least one post-secondary institution in the community in which they live, as well as public transportation that allows access to such institutions? (Looker, p. 9). ?On July 1, 2006, the Government of Canada launched its program to offer individual Canadians a non-refundable tax credit to help cover the cost of public transit...and to reduce air pollution and greenhouse gas emissions? (Government of Canada, About). Under section 118.02 of the Income Tax Act and as explained in the General Income Tax and Benefit Guide 2007, commuters may ?claim the cost of monthly public transit passes or passes of longer duration such as an annual pass for travel within Canada on public transit during the year? (Government of Canada, General, p. 37). Urban post-secondary students using public transportation are now able to claim a public transit tax credit when filing annual income tax. In contrast, rural post-secondary students do not have access to inexpensive transportation nor do they receive a transportation tax credit. ?Students who do not have access to a local university are less likely to go on to university than students who grow up near a university. Bridging the distance gap may be possible by covering the additional costs to help distance students attend or by increasing capacity in outlying areas? (Frenette, Do Universities, pp. 27?28). Instituting a rural transportation tax credit would encourage attendance at post-secondary institutions by more rural students.
REFERENCES Frenette, Marc. Do Universities Benefit Local Youth? Evidence from University and College Participation, and Graduate Earnings Following the Creation of a New University, Statistics Canada, 2006. http://www.statcan.ca/english/research/11F0019MIE/11F0019MIE2006283.htm. Frenette, Marc. Too Far To Go On? Distance to School and University Participation. Ottawa: Statistics Canada, 2002. Government of Canada. About the Tax Credit for Public Transit. January 10, 2008. http://www.transitpass.ca/about_e.asp. Government of Canada. General Income Tax and Benefit Guide, 2007. http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns360-390/364-eng.html. (Line 364, Public Transit Amount.) Government of Canada. Income Tax Act (1985, c. 1 (5th Supp.)), Section 118.02 (1). http://laws.justice.gc.ca/en/showdoc/cs/I-3.3/bo-ga:l_I-gb:l_E//en#anchorbo-ga:l_I-gb:l_E. Looker, E. Dianne and Graham S. Lowe. Post-Secondary Access and Student Financial Aid in Canada: Current Knowledge and Research Gaps. Ottawa: Canadian Policy Research Networks, 2001. http://millenniumscholarships.ca/images/Publications/cprn-bkgnd.pdf. McCall, Warren. Post-Secondary Education Accessibility and Affordability Review: Interim Report. http://www.aeel.gov.sk.ca/Default.aspx?DN=5120698c-af86-4fd1-be22-199baeae0fe2. April 2007. Murray, Stephanie and Kithio Mwanzia. Open Universities: Raising Access, Reducing Barriers. Ontario Undergraduate Student Alliance (OUSA). 2005. http://www.ousa.on.ca/uploaded_files/pdf_files/Policy%20Papers%20and%20Statements/OpenUniversityfinal.pdf. Requested Members' Action:
|
|
|---|
