Getting reimbursed for donations is how democracy works. Ordinary citizens who don't have big bank rolls, can participate. Otherwise, the candidate with the most money wins. And we know who has the most money here. So shell out for the candidates of your choice already!
Well, no, having a government pay back contributors out of tax money is not "how democracy works." If you think that, I suppose you don't mind that your tax dollars are right now being paid out to contributors to Rob Ford's campaign when they get their "rebate"? Of course you do. Now this may be the bizarro way Toronto politics works, but we don't have the monopoly on democracy.
In any case, it's what we're stuck with for now. In brighter news, that Ford salsa dancing video was hilarious.