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The Politics of Neutrality in the Context of Social Tax Expenditures

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The Politics of Neutrality in the Context of Social Tax Expenditures From the Invisible Hand to the Invisible Woman: The Politics of Neutrality in the Context of Social Tax Expenditures Annick Provencher Thesis submitted to the Faculty of Graduate and Postdoctoral Studies in partial fulfillment of the requirements for the Doctorate in Philosophy degree in Law Faculty of Law University of Ottawa © Annick Provencher, Ottawa, Canada 2014 ii TABLE OF CONTENT ABSTRACT ........................................................................................................................ vii THANKS ............................................................................................................................... ix ANNEXES AND TABLES .................................................................................................. xi TABLE OF ABBREVIATIONS ...................................................................................... xii GENERAL INTRODUCTION ............................................................................................ 1 PART I: THEORETICAL FRAMEWORK .................................................................... 16 CHAPTER 1 Social Tax Expenditures in a Neutral Environment: A Dangerous Combination? ................................................................................................................. 19 1.1 Tax Expenditures and the Normative Structure of the ITA .................................. 21 1.2 Social Tax Expenditures ........................................................................................ 33 1.3 The Pressures Towards Neutrality in Tax Law: Tax Theory and Neoliberalism .. 36 1.4 The “Neutral” Context of Social Tax Expenditures, the Neutrality of Laws and the Objectivation of the Subjects of Laws ................................................................... 42 CHAPTER 2 Integrating STEs Into Welfare State Theory ...................................... 61 2.1. The Three Historical Periods of Welfare States ................................................... 65 2.1.1. The First Period: The Keynesian Welfare State ............................................ 65 2.1.2 The Second Period: The Neoliberal Welfare State ....................................... 72 iii 2.1.3. The Third Period: The Social Investment State ............................................ 79 2.2. A Gendered Welfare State Analysis ..................................................................... 89 2.2.1 Character of State, Market and Family Relations ......................................... 93 2.2.2. Stratification .................................................................................................. 95 2.2.3. Social Rights / Decommodification .............................................................. 96 2.3 Conclusion ........................................................................................................... 111 CONCLUSION OF PART I ............................................................................................ 113 PART II: HISTORICAL ANALYSIS OF WOMEN’S ROLE IN STE TAX POLICY ............................................................................................................................................ 115 CHAPTER 3 Methodology ......................................................................................... 117 3.1 Thematic Discourse Analysis .............................................................................. 118 3.1.1. First Step: Identification of the Themes ...................................................... 120 3.1.2 Second Step: Data Collection ...................................................................... 122 3.1.3. Third Step: Initial Reading of the Documents ............................................ 127 3.1.4. Fourth Step: Coding .................................................................................... 127 3.1.5 Fifth Step: Identification of Recurring Themes .......................................... 127 3.2 Choice of the Tax Expenditures Analyzed for a Gender-Sensitive Analysis ...... 129 3.2.1. Childcare and Care of Other Dependents .................................................... 130 3.2.2. Dependency Provisions and Benefits Using Family Income ...................... 137 iv CHAPTER 4 The Social-Democratic Welfare State: The Visible But Dependent Woman ............................................................................................................... 143 4.1 State, Market, Family Relationships or How Working Mothers Are Perceived As A Normative Tax Problem ........................................................................................ 145 4.2 Stratification: When Care Is Only Valued If It Causes An Expense ................... 152 4.3 Social Rights: The Tax Expenditures Discourse Used to Maintain Women in the Home ..................................................................................................................... 157 4.3.1. Decommodification ..................................................................................... 158 4.3.2 Capacity to Form And Maintain An Autonomous Household .................... 163 4.4 Conclusion ........................................................................................................... 171 Chapter 5 - The Neoliberal Welfare State: The Invisible Hand On Women’s Identities ............................................................................................................................................ 173 5.1 State, Market, Family Relationships: The Discourse on STEs Limits the Possibility for Talks of a Different Responsibility Mix ............................................ 175 5.2 Stratification: The Discourse Focuses on the Normative Structure and Tendency Towards Greater Neutrality ....................................................................................... 179 5.3 Social Rights: STEs Are Used More for Targeting and to Provide Means-Tested Benefits185 5.3.1 Decommodification ..................................................................................... 185 5.3.2. The Capacity To Form and Maintain An Autonomous Household ............ 191 v 5.4 Conclusion ........................................................................................................... 203 CHAPTER 6 Social Investment Strategies: The Invisible Woman ........................ 205 6.1 State, Market, Famy Relationships: Relying on the Family for the Care of Relatives .................................................................................................................... 207 6.2 Stratification: No More Equality for Mothers but Equality of Opportunity for their Children ..................................................................................................................... 214 6.3 Social Rights: STEs Are Tax-Relief for the Hard-Working Families ................. 219 6.3.1. Decommodification ..................................................................................... 220 6.3.2 Capacity to Form and Maintain an Autonomous Household ...................... 225 6.4 Conclusion ........................................................................................................... 247 CONCLUSION ................................................................................................................. 249 BIBLIOGRAPHY ............................................................................................................. 255 Legislation ................................................................................................................. 255 Jurisprudence ............................................................................................................. 255 Secondary Material: Monographs ............................................................................. 256 Secondary Materials: Articles ................................................................................... 258 Gouvernement Documents (in Chronological Order) ............................................... 265 ANNEXE 1 : Section 63 of the ITA ................................................................................. 283 ANNEX 2 : Paragraphs 118(1)a), b), b.1), c), c.1), d) and e) of the ITA ...................... 291 vi ANNEX 3 : Section 122.6 of the ITA ............................................................................... 297 ANNEX 4 : Section 122.7 of the ITA – The Working Income Tax Benefit ................. 310 vii ABSTRACT In law, neutrality is now a postulate and this is particularly true about Social Tax Expenditures (STEs) which are tax measures with a redistributive goal, similar to welfare benefits. Hence, taxation and the welfare state are closely connected insofar as STEs are part of the welfare system. But they are introduced within a context of apparent gender- neutrality. Tax law takes little account of gender in the implementation of tax policy. Moreover, the normative criteria for the analysis of tax regimes include concepts such as equity—which suggests that taxpayers in the same position should be treated the same way. We see the potential for a clash of interests between social policy and the founding principles of taxation. The risk is of being unable to account for gender in tax law. My thesis therefore seeks to answer this research question: does the STEs and tax policy discourse relating to STEs contain gender assumptions on the role of women that could, in their subsequent implementation, affect women’s relationship to the STEs? They may be written in gender-neutral
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