Non-refundable tax credits are an inequitable policy instrument for promoting physical activity among Canadian children.
A clear income gradient exists for the sport and physical activity (PA) participation of Canadian children. Governments in Canada recently introduced tax credits to alleviate the financial burden associated with registering a child in organized physical activity (including sport). The majority of these credits, including the Children's Fitness Tax Credit, are non-refundable (i.e., reduces the amount of income tax a person pays). Such credits are useful only for individuals who incur a certain level of tax liability. Thus, low-income families who may pay little or no income tax will not benefit from the presence of non-refundable tax credits. In this commentary, we argue that the non-refundable tax credit is inherently inequitable for promoting PA. We suggest that a combination of refundable tax credits and subsidized programming for low-income children would be more equitable than the current approach of the Canadian government and several provinces that are expending approximately $200 million to support these credits.
Faculty of Physical Education and Recreation, University of Alberta, Edmonton, AB. jc.spence@ualberta.ca
John C
JC
Spence
Nicholas L
NL
Holt
Christopher J
CJ
Sprysak
Nancy
N
Spencer-Cavaliere
Timothy
T
Caulfield
D000293:Adolescent; D002170:Canada; D002648:Child; D004608:Eligibility Determination; D005260:Female; D006291:Health Policy; D006801:Humans; D007183:Income Tax / Q000331:legislation & jurisprudence*; D008297:Male; D017057:Medically Uninsured; D011203:Poverty; D013177:Sports; D019464:Tax Exemption / Q000331:legislation & jurisprudence*