Why Do Political Parties Need Reimbursement System

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Canada is a country that falls under the category of old democracies, therefore, there is no constitution or party law regulation. There is no legislation that regulates the formation of federal political parties1. The only element that political parties must fulfill to be called so is to participate in public affairs by confirming one or more candidates and support them during the election time. Moreover, there is no legal framework indicating any restrictions or directions how to a party should be formed or how it should be legal, internally and financially structured2. The loose structure stands even for the registering the political party and maintaining this status. The political party needs to provide the following information: a name and logo for the political party, the basic personal information for all of its members, the signatures of at least 250 of its members, the leader’s party declaration that confirms the fulfillment of the political parties in Canada, as mentioned above and finally a yearly payment is required in order to be part of the political party system. However, we…show more content…
First, is through reimbursement system. Political parties and candidates get back some percentage of their election expenses. If a party wins only 2-5 percent of the national votes, this pasty will get back 50 percent of its expenses during the election time. The more votes the parties win the less they will get reimbursed. However, parties will get $ 1.75 per each vote that they have gotten in the previous election. This helps to create a balance between parties. Secondly, Canada provides tax credits for donations to political parties and candidates. For the first donations of $400 there is a 75 percent tax credit. Same as with the reimbursement system, even in tax credit system the more a person donates the less tax credit receives. Lastly, the individual’s total tax credit cannot exceed $650 per
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