PO May-June02 Final

THE VOTERS’ TAX CREDIT

Voter turnout in Canadian federal elections is now at historically low levels and it usually is even lower in non-federal elections. A number of countries use compulsory voting to increase voter turnout, but some critics argue that forcing people to vote is a violation of their freedom not to participate. Providing voters with a tax credit would encourage but not require them to vote. It could be made less expensive by targeting it at low-income Canadians, a tactic that would have the added advantage of encouraging participation from a group that often faces higher-than- average hurdles in registering and getting out to vote. Bruce M. Hicks La participation aux élections canadiennes a maintenant atteint ses plus bas niveaux historiques, et elle est plus faible encore dans les scrutins non fédéraux. De nombreux pays imposent aujourd’hui le vote obligatoire pour gonfler cette participation, mais ils violent ainsi la liberté des gens de refuser toute participation électorale. En offrant plutôt aux électeurs un crédit d’impôt, on les inciterait à exercer leur droit de vote sans leur imposer quoi que ce soit. Et l’on pourrait réduire le coût de cette mesure en ciblant les Canadiens à faibles revenus, ce qui aurait l’avantage supplémentaire de favoriser la participation d’une population souvent moins intéressée à s’inscrire et à se rendre dans les bureaux de scrutin le jour d’une élection.

n ancient Athens, election officials used a rope dusted vents that from being done accurately. It also implies a with red dye to force people from the marketplace to lack of accountability and a lack of legitimization for the I the assembly to vote. People moved in the direction of elected body. the Pnyx in order to avoid being stained red. At the begin- Several modern democracies have turned to the ning of the fourth century, payment for attendance was proverbial “stick” of fines or jail time as a way of encour- introduced in Athens, thereby making it possible for the aging participation. In what follows I propose using the lower echelons of society to forgo their daily wage and “carrot” of a tax credit as a way of encouraging greater attend. Plato was critical of the practice, writing (in voter participation in Canada and of compensating lower- Socrates’ voice) “I hear [Pericles] was the first who gave the income Canadians for certain costs associated with voting. people pay, and made them idle and cowardly, and encouraged them in the love of talk and money.” Plato’s ollowing World War II, it had become normal for only concept of “aristocracy” (from the Greek for “rule by the F three-quarters of eligible Canadian voters to cast bal- best”) has long since been rejected in favour of democracy. lots in elections for the Canadian House of Commons, and Even schemes such as that proposed by John Stuart Mill in even fewer in provincial and municipal elections. In the the 19th century to give extra votes to certain groups last decade, however, there has been a marked decline in based on their education have been rejected as undemoc- participation. Voter turnout fell to 69.6 per cent in the ratic. 1993 federal general election, to 67 per cent in 1997 and Universal suffrage with one-person one-vote is now most recently to 61.2 per cent in 2000, the lowest turnout accepted as the cornerstone of democracy. Low and in Canadian history. unequal turnout is therefore contrary to modern demo- In October, the IRPP released a study by Brenda cratic principles. If the purpose of elections is to measure O’Neill of the University of Manitoba, which found the views and desires of the population, a low turnout pre- increasing political disengagement among younger

POLICY OPTIONS 63 MAY-JUNE 2002 Bruce M. Hicks

Canadians. O’Neill suggests this trend is unlike- time), at the attempts made to mobilize them ly to be reversed as these young people grow (e.g. the activities of parties and interest groups) older. Richard Nadeau of the University of or at their motivations (e.g. whether voters feel Montreal is finding similar evidence using their vote will influence public policy). Munroe Eagles cohort analysis. His post-generation-X cohort In the United States, where registration and shows a consistent 20 per cent higher non-vot- voter turnout have been historically low, socio- concludes, “the ing pattern (even allowing for traditional varia- economic status has frequently been shown to proportion of tions in voter turnout based on age). be the major determinant. In Canada, where In their 1995 book Going Negative: How voter turnout has generally been higher, studies low-income Attack Ads Shrink and Polarize the Electorate, focusing on socio-economic status have pro- Stephen Ansolabehere of MIT and Shanto duced mixed results. However, as Munroe Eagles families in a Iyengar of UCLA provide one possible explana- concludes, “the proportion of low-income fami- tion for the recent downward spiral in U.S. voter lies in a riding is consistently a factor associated riding is turnout. Ansolabehere and Iyengar argue that with lower levels of voter turnout.” As turnout negative political advertising, which has declines, it seems safe to assume that the consistently a become all but universal in American elections, inequality between those voting and the gener- can raise so many doubts in voters’ minds that al population will become more pronounced. factor associated they simply decide not to vote at all. The same Wolf Linder of the University of Berne has noted with lower thing may be happening in Canada. Several that “especially when participation is low, the Canadian political parties have imported U.S. choir of Swiss direct democracy sings in upper- levels of voter advertising techniques to Canada, along with or middle-class tones.” paid American campaign strategists. turnout.” Another explanation, proposed by Mark n Canada, a large body of research has exam- Franklin of the University of Houston, among I ined how administrative factors impact on As turnout others, is that voter turnout is low where there elections. Credit for this is mainly due to the is low “electoral salience.” Thus in the Canadian Royal Commission on Electoral Reform and declines, it context the rise of regional parties which are not Party Financing—the Lortie Commission— in a position to form a government, and the which operated from 1989 to 1992. In his paper seems safe to belief that the Liberal Party inevitably will be for the Commission, Jon Pammett of Carleton assume that the returned to power, may have combined to lower University analyzed several national election the electoral salience of federal elections. The studies and Gallup polls. He found “that there is inequality rise in non-electoral participation in Canada— a small hard core of perennial non-voters, num- for example, the rise in interest group activity, bering perhaps five per cent of the population at between those rights litigation and political protest action— most.” Of the remaining 20 per cent who “have which is a corollary to Franklin’s theory, would voted” or “vote occasionally,” most do so if they voting and also support this explanation. are made interested (57 per cent) or are admin- It is also possible that the changes to istratively accommodated (43 per cent). The the general Canada’s electoral laws adopted by Parliament Lortie Commission recommended a number of in 1996, such as a shorter campaign period and administrative changes designed to raise voter population will the switch to a permanent electors list, have turnout in Canada, and, as mentioned, a num- become more reduced voter turnout. Elections Canada has ber of changes were made by Parliament in commissioned the polling firm of Ipsos-Reid to 1996. Since voter turnout subsequently declined pronounced. survey Canadians in order to evaluate the influ- further, these changes undoubtedly will be re- ence of the list and other possible systems of examined. registration. Previous studies of Canadian elec- The purpose of this paper, however, is not tions identified various factors—ranging from to examine the success or failure of administra- weather conditions and holiday plans, to the tive changes, or even to determine the reason personalities and issues that dominated the par- for low voter turnout in Canada. It is, instead, to ticular election, to the age and geographic loca- propose a way of reversing the trend. tion of the voter—as negatively impacting on voter turnout. he simplest way to make more people vote For the most part, political scientists’ theo- T is to make voting compulsory. Compulsory ries of electoral participation fall into one of voting was first proposed in the Canadian three areas of study. They look either at voters’ House of Commons in 1920 by a Laurier Liberal, resources (e.g. their education, wealth and free Andrew McMaster, the MP for Brome, as a way

64 OPTIONS POLITIQUES MAI-JUIN 2002 The voters’ tax credit to “eliminate a large number of the ways in applied to local elections—as it is in all nations which money is, or has been, illegally spent at with compulsory voting except Australia— elections.” His advice was not taken, but four turnout levels are almost the same as those for years later, Australia adopted such a system after presidential and parliamentary elections.” a 58 per cent voter turnout in that country’s The most 1922 federal election. Australia’s Senator Payne hat it raises voter turnout is clearly the compelling argued, in support of his private member’s bill T most compelling argument in favour of bringing about the change, that allowing legis- compulsory voting. The most compelling argu- argument lators representing fewer than half of eligible ment against it is the libertarian one: that it voters to enact laws was “a travesty on demo- infringes on individual freedom and personal against cratic government, and was never contemplated liberty. After all, in a free and democratic socie- when we adopted our present electoral system.” ty, why shouldn’t a person have the right not to compulsory “Compulsory voting” in fact means only vote? Just this concern was the main reason that attendance at the polling station is why, in 1970, the Netherlands abolished com- voting is the required: the government cannot force a person pulsory voting. Critics of mandatory voting to vote, at least not without piercing the veil of point to people like Australian Bill Smithies, libertarian one: secrecy that is essential for fair balloting in a who refuses to vote in spite of the penalties. A democracy. The penalties for non-voting in retired diplomat and civil servant, Mr. Smithies that it infringes countries that do have compulsory voting range has not voted in 20 years and, as a matter of on individual from jail (as in Greece) to fines (in Australia) to principle, steadfastly refuses to pay his fines for having one’s name posted outside the town hall not voting, even when threatened with jail. freedom and (in Italy). What is common to all these coun- Supporters of compulsory voting counter tries, however, is that voter turnout is higher that “voting” is not what is compulsory. personal liberty. than it is in democracies that don’t have com- Attendance at a polling station is. People are pulsory voting. free to decide for themselves whether to cast or After all, in a The International Almanac of Electoral History spoil their ballots. In fact, many countries with allows for easy comparison of the electoral sys- compulsory voting provide a space for absten- free and tems of 25 similarly situated democratic coun- tions directly on the ballot. Besides, when com- tries. In the early 1990s, Canada’s turnout of 75 pared to other obligations—such as jury duty democratic per cent put it ninth from the bottom, which and paying taxes—that are readily accepted as society, why was actually average for countries without com- necessary for the good of society, compulsory pulsory voting. By contrast, no country with voting is a relatively minor imposition on citi- shouldn’t a compulsory voting had a turnout lower than 82 zens’ freedom. per cent, and the average was 86 per cent. Another criticism of compulsory voting is person have the Evidence within countries over time shows that it may mask real problems that should be much the same thing. For example, when Costa addressed by the government and by the politi- right not to Rica and Uruguay introduced penalties for non- cal parties seeking office. As Mark Franklin of voting their turnouts increased by 15 and 17 per Trinity College of Hartford (Connecticut) puts vote? cent, respectively; and when the Netherlands it, low voter turnout “reflects a paucity of choic- and Venezuela removed such penalties, they es or a lack of evident connection between elec- experienced declines of 20 and 30 per cent, toral choice and policy change” and making respectively. With the introduction of compul- voting “compulsory does not directly affect sory voting in Australia (which, like Canada, has either of these critical variables.” It is also some- a federal system based on the British parliamen- times argued that compulsory voting would lead tary model) voter turnout went from 62.3 per to poorer decision-making by the electorate. cent to 90.7 per cent. People would be forced to cast a ballot, but not While in most countries turnout is relative- forced to be informed and educate themselves ly high for first-order elections—that is, nation- before doing so. al elections—the vast majority of elections are Of course, the opposite may also be true: If second-order elections. In countries without some of the people who do not vote are dissat- compulsory voting, these usually attract less isfied with the political system, then without attention and lower turnouts. But, as Arend compulsory voting this segment of the popula- Lijphart of the University of California at San tion will not have an electoral voice, even if that Diego has concluded: “The power of mandatory voice is simply to express dissatisfaction. The voting is highlighted by the fact that when it is need to court favour with an electorate that is

POLICY OPTIONS 65 MAY-JUNE 2002 Bruce M. Hicks

more representative of the population as a other words, it would lower the cost of not vot- whole could force political parties to broaden ing and thereby increase people’s appetite for their appeal. Furthermore, empowering all seg- voting. (Rational choice theory starts with the ments of society would have a liberating effect paradox that there are costs associated with Given the on political parties by making it harder for spe- gathering information and with voting, and cial interests or minorities to control the politi- that while there are offsetting benefits, citizens absence of a cal agenda. can get those benefits without themselves vot- groundswell of Following Canada’s last federal general elec- ing—so long as others do). tion, the Chief Electoral Officer, Jean-Pierre Even though voting can be analyzed in support for Kingsley, was asked about the possibility of terms of its costs and benefits, compensating Canada using a compulsory voting regime like people financially for voting may nevertheless compulsory Australia’s. He said he found the idea “repug- seem a radical suggestion. As Hansen points out, nant” but conceded that “if we start dipping “I am not aware of a democratic government voting, below 60 per cent, I’m going to have to change since Ancient Athens that has paid its citizens to my mind.” Harold Waller, a political scientist at vote.” Canada may be the logical first place to Parliament McGill University, also downplayed the need to try such an initiative, however, since using the turn to compulsory voting, writing that “even at public purse to encourage participation is might want to 63 per cent, Canadians can gaze smugly at their already an entrenched part of out political psy- consider using neighbours south of the border, who barely che. In 1973, the President of the Privy Council, managed a 50 per cent turnout in the November the Hon. Allan J. MacEachen, successfully the carrot rather [2000] Presidential election and then took over argued that the introduction of a tax credit for a month to pick the winner.” political donations would “encourage more than the stick. Canadian MPs seem to be almost universal- Canadians of average means to contribute to the ly opposed to the idea of compulsory voting. party of their choice and become more actively Instead of fining Their public comments have ranged from “it involved in the political process.” The system won’t fly in Canada” (Paul Stackle, MP for the government of the day introduced (in the people who Huron-Bruce, a Liberal), to “it may work in form of Bill C-203, which is the still in place Australia, but it won’t work here” (Peter Stoffer, today) had a weighted formula for contribu- don’t show up to MP for Sackville-Mosquodoboit Valley-Eastern tions, under which a 75 per cent deduction was vote, we could Shore, from the NDP), to “I think people do given for donations of $100 or less, with a cap make a conscious choice to not go out and vote, on the total tax credit at $500. “The purpose of reward people and my feeling is they are entitled to make that doing it this way,” said Mr. MacEachen during choice” (Ted White, MP for North Vancouver, the Commons debate on the government’s bill, who do. from the Canadian Alliance). “is to encourage the small contributor and to The evident shortage of politician-advo- assist the candidate in attracting contributions cates for compulsory voting is not surprising. In from as wide a number of the electorate as pos- an IRPP survey conducted in 2000, 73 per cent sible.” of Canadians said they opposed the idea. At the time, questions were raised about Whether their opposition is unalterable is diffi- whether the public purse should be used to cult to gauge, however. In Australia, support for reimburse politicians and political parties. But mandatory voting has varied, from a high of 73 now, almost three decades later, doing so has per cent in 1963 to a low of 56 per cent in 1969, long since become accepted as not only an with support holding at 67 per cent in the late acceptable use of public funds but a positive 1990s. development for democracy. As the NDP’s Les Benjamin, MP for Regina-Lake Centre, said at iven the absence of a groundswell of sup- the time, “it seems to me that financial support G port for compulsory voting, Parliament for a political belief is as valid and as justified as might want to consider using the carrot rather financial support for a religious belief, a charita- than the stick. Instead of fining people who ble organization, a fraternal society or a trade don’t show up to vote, we could reward people union.” who do. Another principle that has been accepted as Richard Hasen of the Chicago-Kent College part of the electoral system in Canada is that of Law has illustrated that using a “carrot” Canadians not only should be given time off would “increase the normative benefits of vot- work in order to vote, but should be paid during ing,” to use rational-choice terminology. In that time off. To begin with, in 1915 workers

66 OPTIONS POLITIQUES MAI-JUIN 2002 The voters’ tax credit were given one hour off work in addition to the Low-income Canadians are at a disadvan- lunch hour. In 1920 that was raised to two tage in another way. Many are paid on an hours, in 1948 to three consecutive hours, and hourly basis. Although, as we have seen, the finally in 1970 to four hours. This final change Canada Elections Act supposedly guarantees was made because the NDP’s Frank Howard, the everyone three consecutive hours in which to A voters’ tax MP from Skeena, raised the plight of loggers in vote, there is no guarantee that this rule is British Columbia. “A slight difficulty like a flat applied evenly. Evidence of how some workers credit would tire or difficulty in respect of the ‘crummy,’ the have been treated can best be illustrated by the even add weight bus which brings them back into work, could amendments Parliament has made to the Act’s under some circumstances mean they would not “Time to Employees for Voting” clauses. In to the message get back home in time to vote.” However, in 1948, a specific penalty clause was introduced to 1996, when polling station times were reorgan- stop employers from intimidating or otherwise sent by those ized, the requirement was rolled back to three refusing to give employees paid time off work. hours. Stephen Harper, then Reform MP for In 1977, a deeming clause was added to specifi- who deliberately Calgary West and now leader of the Canadian cally protect employees who were paid on an Alliance, acknowledged that this might not be hourly or piece-work basis and in 1996 this do not vote, enough time for voters in rural BC, but said that clause was tightened further to ensure they “four hours is too long and too much of an received the same income they “would have since refusing to imposition on employers.” earned” had they continued at work for a regu- cast a ballot out Given Harper’s comments and the govern- lar shift. ment’s essentially budgetary justification for The “Time for Employees for Voting” claus- of protest would both a shorter campaign period and a perma- es have been repeatedly reworked in a not nent voters’ register—it “would save the federal always successful attempt to protect the most carry with it a government about $30 million for each federal vulnerable members of society and guarantee general election,” Herb Gray explained during their democratic rights. These are people who financial cost to the Commons debate—the primary objection may not be aware of their rights and of the obli- to using the carrot of a subsidy to attract voters gations of their employers and, even if they are, the voter. will likely be that “carrots cost money.” That may not be willing to insist on them because of they do is a principal attraction of compulsory a lack of employment security. A voters’ tax voting, which can even be a net generator of credit would provide these people with the pro- revenue: Iva Ellen Deutchman of Hobart and tection of financial compensation for taking the William Smith Colleges may have been over- time to vote, whatever their employer might do. stating it when he suggested that fining every non-voting American $US50 (which is slightly f a voters’ tax credit would help boost voter less than Australia’s penalty) “would probably I turnout in first-order elections, it is absolute- be enough to balance the budget within several ly essential for second-order elections. Social years,” but the inflows could be appreciable. programs such as housing, education, health, One way to limit the cost of a voters’ tax welfare, and so on, lie within provincial, not credit would be to target it specifically at low- federal jurisdiction (and of course the provinces income Canadians. Targeting would do more delegate some of them to the municipalities, than simply save money, however. As men- where voter turnout is even lower). It is impor- tioned above, low-income families have a dis- tant that Canadians, and especially low-income proportionately low voter turnout. In part, this Canadians, have a say in the programs that may be because they face financial challenges most directly affect them. with respect to voting that middle-income fam- Compulsory voting would also result in ilies do not. For many low-income families, par- greater voter participation, but a voters’ tax ticularly families headed by a single parent, credit has the virtue of leaving the decision to issues like paying a babysitter on polling day participate entirely voluntary. In fact, it would appear to be significant impediments to voting. even add weight to the message sent by those Other costs, such as for transportation, may also who deliberately do not vote, since refusing to be seen as insurmountable barriers. By encour- cast a ballot out of protest would carry with it a aging turnout from this societal group, a low- financial cost to the voter. income voters’ subsidy would force political par- There is another benefit to a voters’ tax ties to connect with the people whose lives they credit that is not directly tied to the credit itself, most directly affect. but rather to its delivery system. Because of pri-

POLICY OPTIONS 67 MAY-JUNE 2002 Bruce M. Hicks

vacy concerns in the administration of the new are administratively challenged in one way or permanent register of electors, the question on another may be given sufficient incentive to the income tax form allowing the tax authori- become interested and to overcome administra- ties to pass along any change in address to tive obstacles. After all, only five per cent of There is no Elections Canada is currently worded almost to Canadians tell pollsters they “never vote.” discourage people from registering. A voters’ tax Using the public purse to encourage the par- getting around credit would encourage registration through the ticipation of people who are otherwise disen- the fact that ... a income tax form, particularly from those who franchised by the political system is a long want to be eligible for the credit. Because low- established practice in Canada. Using a voters’ voters’ tax income Canadians tend to be renters, it is often tax credit would be a way of encouraging people difficult for Elections Canada to maintain cur- to participate, while at the same time eliminat- credit will cost rent information on them. Encouraging their ing some very real financial impediments for a registration through the income tax form would specific segment of society. To take the argu- taxpayers help increase their rate of participation. ment advanced by Les Benjamin to the next log- It is also worth pointing out that the safe- ical step, “surely compensating a low-income money. guards already in place to protect the electoral Canadian for the costs of democratic participa- system naturally lend themselves to harmoniza- tion (costs they are ill-equipped to absorb) is as But we did not tion with the tax system. Elections Canada valid and as justified as compensating middle- choose the could easily print a “receipt” as a perforated stub and upper-income Canadians, labour unions or on each ballot. The polling station official corporations for financially supporting the dem- democratic form would then complete and hand the voter this ocratic process.” receipt along with the ballot, the former to be There is no getting around the fact that, of government kept until tax time and the latter to be placed in unlike compulsory voting (which will generate the ballot box or, if the voter chooses, spoiled. revenue through fines), a voters’ tax credit will because it is an The control mechanisms that Elections Canada cost taxpayers money. But we did not choose uses to ensure that every ballot is accounted for the democratic form of government because it is inexpensive would ensure that no tax receipt went astray. an inexpensive system of governance. We chose And, while every voter would get a receipt on it because we felt it was more just. The value of system of polling day, the T1 income tax form would making our democratic system fairer may be governance. ensure that the voters’ tax credit is paid only to hard to put into dollars and cents, but that does those people meant to get it (as the form cur- not mean it is trivial. What are the costs to soci- We chose it rently does for the property tax credit). ety from patterns of participation that are slant- ed towards middle- and upper-income earners? because we felt oter turnout is at a record low in Canadian Greater disparities of wealth, political dissatis- V federal elections. It is even lower for faction or even unrest, increasing tax avoidance, it was more just. provincial and municipal elections. Clearly, declining educational standards, and a rising given current trends, Canada needs to consider number of persons falling through the cracks all radical remedies to this problem. In fact, voter are very real costs to Canadian society. turnout is already almost as low as it was in It is no coincidence that in ancient Athens, Australia when that country moved to compul- the birthplace of democracy, the largest single sory voting in the 1920s, and it is almost at the budget item was the cost of paying people to level which the Chief Electoral Officer of vote, and thereby permitting those who could Canada has said would cause him to rethink his not afford to on their own, to participate in gov- own views on compulsory voting. erning themselves. The question for Canada Given its success elsewhere, compulsory must be, as it was for Athens, what value do we voting is clearly the alternative that offers the place on democracy? greatest chance to rapidly achieve and maintain respectable voter turnout levels in both first- During the 1993 federal general election Bruce and second-order elections. However, it does Hicks was chair of the Liberal Party of Canada’s impinge on citizens’ right not to participate. National Task Force, which was charged with The virtue of a voters’ tax credit is that it does increasing the representation of women in the not force anyone to do anything against his or House of Commons. He is the former Editor-in- her will. A Bill Smithies may elect to exercise his Chief of The Financial Post Directory of right not to vote, but many of those who do not Government and Ottawa bureau chief for United vote because they have become disinterested or Press International (UPI).

68 OPTIONS POLITIQUES MAI-JUIN 2002