To nobody’s surprise, on Tuesday the province raised the threshold for the provincial homeowners grant, thereby ensuring a sizable percentage of property owners – and voters – provincewide continue to benefit from the program. On the North Shore, thanks to sky-high assessments, a smaller percentage of owners benefit.
But it’s a popular program and no wonder. Who doesn’t like getting free money to help pay their taxes? Local mayors also like the grant because it cushions the impact of tax hikes.
Politicians mess with such programs at their peril.
The 60-year-old grant was brought in by the Socreds to encourage the buying and building of homes in the post-war years.
But times have changed a tad since then. A grant of $570 or $845 is unlikely a big factor in buying a $1-million home. Other families will never own a home, through no fault of their own. And they also struggle with housing costs. Why should they be excluded from government largesse?
Of course, just because a person is asset rich doesn’t mean they aren’t cash flow challenged.
Currently, however, there is no means test to help determine who would benefit most from the grant – a considerable oversight.
There are many reasonable questions that could be asked about the grant and who should receive it, but don’t expect that discussion anytime soon. Successive governments of all stripes have shied away from reforms over many decades.
Politicians recognize a no-win situation when they see one.
In an election year, especially, there’s no appetite for messing with what many voters feel isn’t broken.
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