As Canadian cities face growing pressure to provide more and better services for the elderly, a new study released by the IRPP says they should discontinue the practice of reducing user fees and property taxes for seniors.

Using Ontario as a case study, municipal finance expert Harry Kitchen lays out some guiding principles for financing services like public transit and recreational activities. He argues that all local services should be financed the same way, including those for the elderly.

“Seniors’ discounts on services and property taxes are not equitable and should be abandoned. They were established at a time when a high percentage of older residents were living in poverty, but poverty rates for seniors have decreased considerably compared with those in the rest of the population.” 

Moreover, he adds, they are inefficient and can lead to excess use of services.  According to Kitchen, programs and grants should support all low-income individuals in need, regardless of age.

In addition, he argues that if municipal governments had access to new taxes or revenues, they would have more flexibility to respond to local needs. “Reducing municipalities’ reliance on property taxes would also ease the relatively heavier tax burden on all low-income individuals, including seniors in need,” he says.