Coherent Identifier About this item: 20.500.12592/47t6jp

A cost estimate of proposed amendments to the Income Tax Act to exempt certain employer provided transportation benefits from taxable income : Estimation des coûts des modifications proposees à la Loi de l'impôt sur le revenu dans le but d'exepter du revenu imposable certains avantages relatifs au transport fournis par l'employeur

2010

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Summary

Key Points of this Note: Consistent with its legislative mandate to estimate the financial cost of any proposal that relates to a matter over which Parliament has jurisdiction, the PBO was asked to prepare a cost estimate of a Bill tabled in the second session of the 40th Parliament [C-466: An Act to Amend the Income Tax Act (transportation benefits)]. [...] Denise Savoie, Member of Parliament for Victoria, British Columbia, regarding the potential costs arising from the adoption of a Bill introduced in the second session of the 40th Parliament: Bill C-466, An Act to Amend the Income Tax Act (transportation benefits)1. [...] The greater the costs of implementation and administration of the employer benefit program, the less likely employers are to offer a program and, to a lesser extent, employees are to adopt it. [...] For Cana da, PBO staff estimated the value of the tax benefit using the potential tax exemptions outlined in C-466, the average marginal income tax rate of Canadian federal filers in 200711 and the actual rates for employer payroll deductions in 201012. [...] The size of the subsidy is assumed to be within the range of 10% to 30%, based on historical U. S. data and results from the recent introduction of similar programs in Winnipeg22.

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government politics economy fiscal policy income tax monetary policy business commuting employment politique fiscale labour payments finances publiques tax revenue estimating recettes fiscales transport parliament government budget employment insurance taxpayers tax credit public transit pension plan wage and benefit cycling canada pension plan finance, public parliamentary budget officer government finances income tax in the united states canada revenue agency payroll taxes politique monétaire

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