Federal tax policies, provincial problems

Many Government of Canada policies affect provincial governments, directly or indirectly. One of the most important areas is taxation – the life-blood of the body politic. How has this issue been discussed in this federal election?  Living within whose means?  We are constantly told that governments must “live within our…
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Closing small business tax loopholes

  The NDP, Liberals, Conservatives and Greens are now all proposing to cut the small business tax rate from 11% to 9% (albeit on slightly differing timelines), an unnecessary and unwise policy, as outlined in previous CCPA posts. It may make for good politics, but it’s a policy with no…
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Small taxes, big loopholes

A longer, more detailed version of this post is available on the Progressive Economics blog. Small business taxes made the news last week during a CBC interview when federal Liberal leader Justin Trudeau suggested many business owners are using the small business tax rate as a de facto in-country tax…
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Canada’s failed experiment with corporate income tax cuts

According to many mainstream (neoclassical) economists, cutting corporate income tax (CIT) rates is wise public policy. By reducing the cost of capital, more of it will be supplied, and because investment is a key driver of growth, reducing CIT rates leaves firms with more after-tax income to plough into growth-expanding…
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Outrageous claim of a ballooning tax bill

“The total tax bill, which includes all types of taxes, has increased by 1,886% since 1961,” concludes the Fraser Institute in its 2015 Canadian Consumer Tax Index. Even if the estimation is sound (a big “if”), the tax surge can only be true when inflation is totally ignored. It’s a…
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