{"id":3965,"date":"2025-02-24T02:00:18","date_gmt":"2025-02-24T07:00:18","guid":{"rendered":"https:\/\/cpp.hec.ca\/en\/?p=3965"},"modified":"2025-05-20T11:55:02","modified_gmt":"2025-05-20T15:55:02","slug":"evaluation-of-tax-policy-on-tax-credits-for-tax-advantaged-funds-2","status":"publish","type":"post","link":"https:\/\/cpp.hec.ca\/en\/evaluation-of-tax-policy-on-tax-credits-for-tax-advantaged-funds-2\/","title":{"rendered":"Income Tax Credits for Tax-Advantaged Funds: an Outdated and Costly Policy"},"content":{"rendered":"<div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap\" style=\"max-width:1144px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-flex-column\" style=\"--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;\"><div class=\"fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column\"><div class=\"fusion-text fusion-text-1\"><p><strong>Montr\u00e9al, February 24, 2025<\/strong> \u2014 The HEC Montr\u00e9al Centre for Productivity and Prosperity \u2013 Walter J. Somers Foundation (CPP) <a href=\"http:\/\/cpp.hec.ca\/wp-content\/uploads\/2025\/02\/PP-2024-03.pdf\">published its conclusions today<\/a> under its mandate from the Minist\u00e8re des Finances du Qu\u00e9bec to analyze the effectiveness of fiscal policy relating to income tax credits for tax-advantaged funds. Based on tax data from thousands of Quebec firms, the CPP researchers came to a clear conclusion: maintaining this policy cannot be justified, given the size of the tax expenditure it involves.<\/p>\n<p>\u201cThe government is stubbornly applying tax strategies based on the needs of another era,\u201d explains Robert Gagn\u00e9, CPP Director and co-author of the study. \u201cOn average, the Quebec government gave up revenue of approximately $156\u00a0million a year to finance the credit for contributions to labour-sponsored funds between 2012 and 2019, meaning an average cost of $45,594 for each job created. Given that job creation hasn\u2019t been an economic development concern for at least 10\u00a0years, \u00a0this is obviously a disproportionate expenditure.\u201d<\/p>\n<\/div><div ><a class=\"fusion-button button-flat fusion-button-default-size button-default fusion-button-default button-1 fusion-button-default-span fusion-button-default-type\" target=\"_self\" href=\"http:\/\/cpp.hec.ca\/en\/wp-content\/uploads\/sites\/2\/2025\/05\/Communique_PP-2024-03_ANG.pdf\"><span class=\"fusion-button-text awb-button__text awb-button__text--default\">Read press release<\/span><\/a><\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":4,"featured_media":3962,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13,17],"tags":[],"class_list":["post-3965","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-media-room","category-press-releases"],"_links":{"self":[{"href":"https:\/\/cpp.hec.ca\/en\/wp-json\/wp\/v2\/posts\/3965","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cpp.hec.ca\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cpp.hec.ca\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cpp.hec.ca\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/cpp.hec.ca\/en\/wp-json\/wp\/v2\/comments?post=3965"}],"version-history":[{"count":7,"href":"https:\/\/cpp.hec.ca\/en\/wp-json\/wp\/v2\/posts\/3965\/revisions"}],"predecessor-version":[{"id":3980,"href":"https:\/\/cpp.hec.ca\/en\/wp-json\/wp\/v2\/posts\/3965\/revisions\/3980"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cpp.hec.ca\/en\/wp-json\/wp\/v2\/media\/3962"}],"wp:attachment":[{"href":"https:\/\/cpp.hec.ca\/en\/wp-json\/wp\/v2\/media?parent=3965"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cpp.hec.ca\/en\/wp-json\/wp\/v2\/categories?post=3965"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cpp.hec.ca\/en\/wp-json\/wp\/v2\/tags?post=3965"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}