Policy Forum: Kids are Not Boats

Abstract

In this article I argue, first, that government intervention to alter pure market alternatives, or to promote socially beneficial behaviours, can be justified. Second, I argue that the tax system -- including often-derided "boutique tax credits" -- is an acceptable vehicle for such intervention. I then discuss six areas where government can, and should, positively alter behaviour using the tax system: when someone (1) starts a family, (2) has children, (3) incurs costs to earn income, (4) owns a home, (5) saves for the future, or (6) improves civil society.

Keywords: Tax credits, tax deductions, tax expenditures, tax policy, tax reform, family allowances