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Political parties should pay their own way

Author: Todd MacKay 2015/07/31

This column originally ran in the Winnipeg Free Press on July 31, 2015

Governments spend money on all kinds of foolish things from robotic Christmas trees to beer growlers to pensions for former members of parliament who are criminals. The Canadian Taxpayers Federation (CTF) works hard to reduce government waste and we’re not going to run out of work any time soon. But accountability is another key pillar of our work so we don’t quibble over the funding for one government function: democratic institutions.

A debate is raging as to whether it’s right for Prime Minister Stephen Harper to call a very early election and some people are concerned about additional costs incurred by a long campaign.

The reality is that the most expensive day of an election is the last one. Most of the public money is spent to collect and count the votes on Election Day. It’s like farming: whether the growing season is long or short most of the expenses come at seeding and harvest and the days in the middle don’t impact the cost very much.

We don’t begrudge the money spent by Elections Canada regardless of the length of the campaign because elections are worth it.

But we certainly do begrudge the money political parties siphon out of taxpayers’ pockets.

For every dollar a political party spends during a campaign, taxpayers end up paying 60 cents. That’s because political parties get a rebate of 60 per cent for campaign costs from government coffers after the election is over. A longer campaign would give political parties the chance to spend more and therefore bill taxpayers for more costs. That’s not right.

However, the problem isn’t the length of the campaign. If political parties want to spend their own money, they’re welcome to campaign as long as they like. The problem is the ridiculous rebate they take from taxpayers afterwards. We need to get rid of those rebates and force political parties to raise money on their own merits.

While we’re on the topic, there’s another campaign finance issue that needs to be fixed.

When people donate $400 to a charity, they might get about $140 back on their taxes.

If people give $400 to a political party, they get $300 back on their taxes.

The House of Commons can turn almost any issue into a desk-thumping, opponent-heckling roar of debate. Ask why political donations should get a better deal than charitable donations and it’s quiet enough to hear crickets chirping. Political parties are good for society and even heated debates are healthy, but surely nobody thinks the work they’re doing is more important than the care charitable organizations provide for people who desperately it. Political donations get big rebates simply because politicians are the ones making the rules.

Whether political candidates are on the campaign trail for a few weeks or a few months, they should spend their own money. Right now they take donations and spend money with a wink and a nod because taxpayers will be footing most of the bill anyway. A longer election will make that bill bigger. But the problem isn’t the bill itself, the problem is the wrong people are paying for it. Political parties will be more accountable if they have to earn donations by persuading people to buy into their vision for the country rather than reaching for rebates from taxpayers.


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