Every year, Canadians pay hundreds of billions of dollars in taxes with the understanding that governments will invest the money to address public needs. This system relies on centralized decision-making through federal and provincial institutions, which manage everything from infrastructure and health care to education and national defense. The structure has long been accepted as the default, but a new proposal is coming into focus, one that would put a bit of decision-making back into the hands of the people who pay the taxes.
Adam Gant, a BC-based entrepreneur and finance professional, is asking whether it’s time to rethink how public funds are distributed. He proposes that taxpayers should be allowed to direct up to 5% of their personal income tax to registered Canadian charities. And the rest of the taxes would be collected through traditional government systems. Instead, this approach would serve the double purpose of allowing individuals to do what they believe is right while at the same time getting everyone thinking about how to be the most effective with a “redistribution”.
The largest revenue source for Canada’s government is personal income taxes. In the 2023 fiscal year, the federal government collected over $480 billion in revenue, with personal income taxes accounting for more than half of that amount. If just 5 percent of these taxes were directed by individual taxpayers, this could shift between $10 to $12 billion per year into the charitable sector. Today, Canadians give roughly $20 billion annually to charity. Gant’s model could increase that number, without needing more out-of-pocket giving.
The proposal is not meant to replace public funding or eliminate the role of government. Rather, it would allow citizens to express their values and priorities more directly. This could also lead to increased involvement in social issues as individuals weigh how best to direct their share of capital. Charities in fields like food security, housing, mental health, and environmental protection could get a boost in funding.
Adam Gant sees this as a way to make the tax system more transparent and aligned with representing individual people’s values. “Empowering people to direct a portion of their taxes doesn’t undermine government. If anything, it empowers democratic participation and makes people feel their government is working for them,” says Gant.
According to a report published by CanadaHelps in 2023, 57% of charities could not fulfill the demand for their services. Meanwhile, public trust in institutions remains in free fall. Allowing people the means to do something with accountability in the allocation of taxes might solve both issues. It would build on systems already in place. The Canada Revenue Agency maintains a registry of eligible charities, though it oversees compliance and reporting. Such existing mechanisms could form the basis for implementing taxpayer-directed contributions.
Gant’s model maintains a significant role for the government by setting a taxpayer-directed limit of 5%, so the bulk of contributions remain centrally managed. This is a way to reframe their role and test a more participatory model. In Canada, this structure could invite more citizens into the conversation about the public good rather than leaving those decisions entirely to elected officials and bureaucracies.
Gant feels civic trust comes through active involvement. When people sense that their voice carries weight, even a small amount, they’re far more likely to promote the larger goals of society. “This is not a radical departure from how things work today,” he says. “This evolution mirrors the values of an educated and engaged citizenry.”
This model offers a chance to test a new kind of civic relationship. Instead of taxpayers feeling distant from the impact of their contributions, they would see the direct outcomes of their choices. Charities would be assured a steady and diversified source of funding. Citizens would help shape society. The government structure would stay, but public engagement might be more intense and intimate.
