The 180

A call for cities to end discounts for seniors

A new report says cities should stop offering discounts to seniors for things like transit and recreation services.
Most municipalities offer discounts to seniors for services like recreation. Harry Kitchen says it's time they stop. (CBC)

Municipal discounts for seniors lead to unfair income distribution. That's according to a new report from the Institute for Research on Public Policy. Report author Harry Kitchen, Professor Emeritus in Economics at Trent University, says seniors no longer need across-the-board discounts for things like transit and recreation programs. 

When cities allow all seniors to access services at discounted rates, Kitchen argues, younger people take a hit. Since seniors no longer make up the largest percentage of Canada's poor, this means a city's poorer residents effectively subsidize their wealthier neighbours: "If you put subsidies based on age, you're basically subsidizing rich people as well as poor people." 

Kitchen acknowledges that some seniors do need a leg up-- but he says those people, and low-income residents of all ages, should be helped by provincial social assistance programs. 

Where some might see discounts as a way of honouring seniors, and rewarding them for years of contributing to society, Kitchen says that doesn't make sense. A senior himself, he says it's fine if private corporations want to treat seniors; but cities are different. He points out that cities have limited ways of generating revenue, and the money they collect is used in the year it is collected: "Why should you, when you're 75, not pay for the services that are being used up that year, but expect somebody else to pay your share?" 

I don't think that there's any Canadian who believes that we should have an income transfer system where we transfer money from the poor to the rich. - Harry Kitchen, Professor Emeritus in Economics

Kitchen says he's already getting some heat for going after seniors, but he says he's just doing what makes sense: "All I'm saying is look, for those seniors who are not poor, I don't see why we should be giving them special perks."