Randall Denley: It won’t be easy to wean Ontario parties off generous tax treatment

Ontario Premier Doug Ford and his PC party have taken some heat lately for squandering taxpayer-supported political donations, and rightly so. It’s difficult to justify spending $3,000 to snoop on Liberal leader Bonnie Crombie in Jamaica . Then there was the revelation that some cabinet ministers’ riding associations spent thousands of dollars on lavish dinners , and even an axe-throwing event.

The real scandal, though, is the way Ontario political parties enrich themselves at taxpayers’ expense at levels that are out of sync with what’s happening in the rest of the country.

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In defending the Jamaica adventure, Ford referred repeatedly to “the party’s money,” but every dollar the party receives is subsidized by the public, whether it’s through a donor tax credit or a per-vote payment.

Ontario has one of the highest political donation limits in the country, the most generous tax treatment for donors, and the highest per-vote subsidy.

Donor contributions to federal parties are limited to $1,775 . In Ontario, the limit is $5,000. Ford raised the figure from $3,400 last year . Why do Ontario politicians require so much more money in ridings that are identical to federal ridings?

Ontario’s tax treatment of political donations is also out of step with the federal amounts. The feds cap political donation tax credits at $650 and the amount is non-refundable. Ontario’s tax credit limit is $1,698 and it’s fully refundable. Even if you owe no tax, you still get cash back.

Ontario’s tax credit for political donors is markedly more substantial than any other province. Manitoba and Alberta have $1,000 tax credit limits, but most provinces range from $500 to $650 .