Social tax expenditures in Quebec (Canada): The state of play

Abstract

AbstractThe purpose of this article is to better understand the architecture of social protection as a complex and evolving system in contemporary societies. To achieve that goal, we establish an inventory of 65 socio‐fiscal expenditures or social tax expenditures (STEs) of Quebec's (Canada) personal income tax system. These include tax expenditures related to social protection insofar as they contribute in one way or another to the protection against major social risks, the improvement of living conditions and to the fight against exclusion and social inequalities. STEs were selected taking into account the objective pursued (supporting income, promoting pensions, helping employment, recognising family responsibilities, encouraging education, pursuing a specific social objective, and promoting tax equity) and the type of tax break (tax credits, exemptions, etc.). The classification reveals the extent of recourse to taxation as a complementary tool for public intervention in the field of social protection.