Behind the Numbers

Entries Tagged as 'Taxes and Tax Cuts'

Small business tax cuts in Canada: been there, done that

January 29th, 2015 · · Canada, Taxes and Tax Cuts

In the prelude to the 2015 federal election, NDP Leader Thomas Mulcair is talking job creation in Southwestern Ontario.

He’s promising more small business tax cuts and credits as his entry point. It’s the political norm these days to promote low business taxes, but the reality is small business tax cuts are already old hat. Here’s why:

About a year ago, Canada’s Department of Finance released a report outlining the changes in effective tax rates for small businesses, or Canadian controlled private corporations (CCPCs) as they are called in tax language, between 2000 and 2011.

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Municipal headache

January 29th, 2015 · · Cities, Taxes and Tax Cuts

Municipal taxes. Their mere mention is enough to cause headaches for some. Throughout the year, we nearly forget that we help finance our own town or city. Then the tax bill pops up in our mailbox, and we open it with trembling hands, wondering about the magnitude of this year’s hike. This letter can put an end to many households’ home-owning project, mainly elderly and young families. Wages rarely follow the staggering rise in the price of real estate.

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The downside of Canada’s love affair with small business

January 28th, 2015 · · Income Inequality, Taxes and Tax Cuts

It is not difficult to understand the motivation behind the federal NDP’s decision to make a tax cut for small business a centerpiece of its pre-election policy roll out.red

As touted by what must be the most consistently effective political lobbying force in Canadian history, small business is perceived to be an important engine of economic growth and job creation.

And while supporting small business doesn’t have the easily identifiable upside that goes with investing in large-scale projects of multinational corporations that have big job numbers attached to them, it has the virtue of avoiding the red-faced problem when those big jobs go south.

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Toronto, you’re richer than you think

January 20th, 2015 · · Ontario, public services, Taxes and Tax Cuts

Toronto’s budget season has begun in earnest, and it’s yielding a mix of the predictable “we can’t afford things” debate, along with some refreshing surprises.

Refreshing: Mayor John Tory is clearly signalling a desire to break from the recent past with the 2015 budget. His announcement on improvements to the TTC and his focus on the value of service improvements at his budget press conference this morning are a welcome breath of fresh air.

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The case against a revenue-neutral carbon tax

January 16th, 2015 · · Energy Policy, Environment, Taxes and Tax Cuts

I’m a fan of carbon taxes, but increasingly I see the term “revenue-neutral” attached to it. Where I live, in BC, we have perhaps the most prominent example of a revenue-neutral carbon tax, and carbon tax advocates have come to promoting the BC model to other jurisdictions, such as Ontario, who are contemplating their own carbon tax. This includes the new EcoFiscal Commission, which endorses a naive view of markets – the magic of free markets is alive and well, and if only we could put a price on carbon to change marketplace incentives, all will be well.

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Nova Scotia Tax Review: Eroding Tax Fairness

November 19th, 2014 · · Income Inequality, Nova Scotia, public services, Taxes and Tax Cuts

The Nova Scotia Tax Review released today lacks an analysis of the impact its tax changes will have on Nova Scotians. Who would benefit? A simple distributional analysis of different income groups would give us some information. Not available. (Informative to check out the analysis we did for the Hamm government’s proposed cuts back in 2003 – by income level & by gender and county.)

What is the anticipated effect of the tax changes on the economy? How many jobs might be created by this tax package? There is no evidence in this report on either of those. What can be said based on what we know about the problems facing the province, the current tax regime and the impact of taxes and government spending on the economy?

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$15 child care: Canada’s hottest new political pledge?

October 15th, 2014 · · Alberta, Child Care, Gender Equality, Income Inequality, Maritime Provinces, Poverty and Income Inequality, public services, Quebec, Taxes and Tax Cuts

As Canada’s Twitter elite (economists, pundits, partisans) broke out into a virtual policy brawl over yesterday’s NDP national affordable child care pledge, I couldn’t help but think the party might have hit a political sweet spot.

Of course there were the typical Twitter arguments between Liberals and New Democrats that break out every time one of them makes a political pledge.

But another line of argumentation unfolded on my Twitter news feed – one designed to exploit class tensions. The argument advanced by a few well-off Twitterati asserts that universally accessible, affordable programs, like child care, aren’t progressive because rich people can afford to pay for these services themselves.

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You say tomato, I say fish: or, why we we treat property taxes differently

October 9th, 2014 · · Ontario, Taxes and Tax Cuts

Recently, the Canadian Federation of Independent Business received some media attention for their report on the relationship between residential and business property taxes in Ontario.

While a step up from the norm (this report is based on some actual data as opposed to a survey of the views of its members) that the CFIB would whinge about taxes is not new, nor is the fact that their results are misleading and contradictory.

Essentially, the CFIB makes one point: that business (commercial and industrial) property tax is higher than residential property tax.

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Austerity 2.0: Kinder and gentler, but a cut is still a cut

October 1st, 2014 · · Employment and Labour, Ontario, public services, Taxes and Tax Cuts

Here in Ontario, we have glimpsed the future, and it looks a lot like Austerity 2.0.

That’s what Ontario Premier Kathleen Wynne’s mandate letters set out for her cabinet last week.

On the one hand, the premier is instructing her ministers to invest – in poverty reduction, transit and transportation improvements, and (hopefully) job creation.

But, with those same letters, ministers are being told to hold the line on spending. Even after two years of her predecessor’s austerity cuts, Wynne has instructed her cabinet to find $250 to $500 million in savings every year until 2017-18 – her target to eliminate the province’s fiscal deficit.

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Why “Corporate Social Responsibility” is a Crock

September 19th, 2014 · · Alternative Federal Budget, Capitalism, Corporations, Taxes and Tax Cuts

Back when I was in the MBA program at the University of Alberta in 1984, a wily professor put the cat among the pigeons. He asked us students to consider whether corporations should forget about charity and good works and simply…pay their taxes.

Businesses, he argued, were good at making money, not social welfare. The difficult decisions on which groups of needy citizens, domestic and foreign, to help out should best be left to elected officials (who could be turfed at the next election if we didn’t like their actions.) And, in the field of making life better for those in great need, governments employ people who actually know what they are doing. As I recall, the suggestion met with considerable support among my fellow business students. We were a pretty perceptive bunch back then.

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