Bank of Canada Governor Tiff Macklem arrives for the annual meeting of federal, provincial, and territorial finance ministers in Toronto on Dec. 15.Nathan Denette/The Canadian Press
Averting disaster
Re “BoC’s Macklem defends thankless work of 2023, promises ‘the payoff is coming’” (Dec. 23): Not everyone thinks Bank of Canada Governor Tiff Macklem is the Grinch who stole Christmas. Those of us who lived through 1980 understand that overextended credit cannot go on forever, without consequences.
Mr. Macklem had the sense to bring a halt to unbridled credit before we ended up back at 21.5 per cent, as we did in December, 1980.
Shelagh Barrington Toronto
End of retirement?
Re “Okay, boomer: An intergenerational fight for jobs is booming” (Report on Business, Dec. 23): Workplace pensions are disappearing and the cost of living is increasing. Between 1995 and 2015, Canadian seniors stayed in their jobs or re-entered the labour force in increasing numbers. Most seniors who still work do so because they have to, not because they want to. Standing for a full shift working as a supermarket cashier is not recreation, it’s desperation.
Reiner Jaakson Oakville, Ont.
Mending our ways
Re “The right to repair needs fixing” (Editorial, Dec. 26): The right to repair is not only good for one’s pocketbook but also for the planet. Resources and landfill sites are not endless.
Refuse, reuse, recycle, repair.
Jan Vanderwal Toronto
A related issue is planned obsolescence, identified as a nefarious industrial strategy decades ago. Major appliances such as washing machines and freezers used to last forever, but are now expected to break down within 10 years. Microsoft is ending its support for Windows 10 in 2025 and my 10-year-old computer cannot accommodate Windows 11, so I will be forced to buy a new one even though the current one still works just fine. Examples abound of the imbalance between the interests of manufacturers and consumers, leading to avoidable waste. There ought to be a law against this.
Erwin Dreessen Ottawa
Can someone ask about my electric kettle that does not switch on and off properly? A simple fix suggested on YouTube would be light sanding of the switch contacts that are likely corroded or replacement of a $5 part. However, both of these avenues have been made impossible by the manufacturer, which designed the product to make the contacts inaccessible and the replacement part built into the base. The result is no repair and more metal and plastic going to the landfill.
Richard Westler Ottawa
What drives donors?
Re “Ottawa’s move to tax the rich more will backfire on charities” (Report on Business, Dec. 26): I was disappointed to read that rich people who are big donors to charities are considering donating less because of proposed tax changes. When I, a middle-income earner, give to a charity it is to help that charity. I have never once thought what the tax implications were. It appears that rich donors do think about the tax implications and, in my opinion, are not so much philanthropists as they are tax avoiders.
David Shore Richmond, B.C.
Three cheers for the C.D. Howe Institute’s research on the federal government’s considered changes to charitable-giving rules. These tax policy changes under consideration will clearly disincentivize high-net-worth donors from supporting the non-profit sector, not to mention make donating more confusing to many.
While more money is being delivered to the non-profit sector, it continues to come from a smaller donor base. Given the massive demands for donations within the health care, education and community segments of the sector, the government would be better advised to figure out tax policies that incentivize more donors and donations, not less.
There is no question that income inequality raises challenges for our society but let’s not make the charitable sector an unwilling victim of this issue. Donors respect and support the amazing work done by all those employed within the sector; so should the federal government.
Eric Tripp Toronto
The article on the possible changes to the formula for determining the alternative minimum tax leaves the impression that Canadian philanthropists are motivated by tax incentives, and that any tampering with the tax will lead to material changes in the level of charitable giving by affluent donors in Canada. The authors suggest that “charitable giving is known to respond significantly to tax incentives.”
I beg to differ. Research in North America and in other jurisdictions clearly indicates, fortunately, that generosity is driven by personal beliefs, a desire to contribute to the betterment of society, the importance of a particular cause and the impact of a major gift. A report published this year by TD Wealth on Canadian women and philanthropy states, “None of the women donors that participated in the research mentioned as motivators either the tax benefits or the public recognition that might accompany a gift.” Furthermore, a survey-driven report published in 2023 by the Lilly Family School of Philanthropy at Indiana University suggested that only 12.7 per cent of affluent households surveyed by the school were “always” motivated by the ability to receive a tax benefit.
Canadian tax incentives applied to charitable donations are recognized as being among the most generous in the world, and the alternative minimum tax formula tinkering being considered by the Department of Finance is not the draconian measure that many journalists and some in the charitable sector have written about.
Undoubtedly, any change will prompt philanthropists to have a discussion with their financial and tax advisers, but it is unlikely to cause caring and financially successful Canadian families from continuing to support charitable institutions that play such a critical role in our day-to-day lives.
Keith Sjogren Toronto
Tax love
Re “Has Ottawa destroyed its own carbon tax?” (Report on Business, Dec. 19): The so-called carbon tax has been great for me for three reasons.
First, wealth. A big cheque was deposited in my bank account, amounting to much more than the tax I paid. Second, health. I walk whenever I can and leave the car at home, thereby getting a lot more exercise. Third, conscience. I feel (moderately) good about making a (small) contribution to the environment.
As carbon pricing goes up, I expect to benefit even more – and so can you.
James Robert Brown London, Ont.
Lest we forget
The most heartbreaking, yet uplifting, obituary of the year was in last Saturday’s edition (“War veteran was last Canadian survivor of Battle of Hong Kong” – Obituary, Dec. 23): As a keen reader of personal narrative, I am so grateful that Hormidas Fredette’s experiences were communicated to us. I really wish The Globe and Mail would publish hundreds of these pieces to become required reading in our educational system. Let’s not forget the heroes of this country.
Debra Dolan West Vancouver, B.C.
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