Taxing Capital Gains

The following also appears in The Globe and Mail’s Economy Lab: Earlier this week, Kevin Milligan questioned proposals “to increase the tax on capital gains.” Currently, Canadian income tax applies to only 50 per cent of capital gains. Milligan argues that light personal taxation is justified for income that has…
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Giving Thanks for Neil Reynolds

I rarely praise Neil Reynolds, but today’s column is a must-read. The point is that taxing large inheritances should appeal not only to those of us concerned about highly unequal outcomes, but also to those simply concerned about equality of opportunity. It may or may not be possible to justify…
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C. D. Howe Shills for Oil Companies

The C. D. Howe Institute is out this morning with a press release entitled, “Raising Oil and Gas Royalties Does Not Benefit Provincial Coffers.” A complete analysis of the accompanying 30-page paper – featuring many graphs, tables and regressions – will take time. But here is my initial take. Background…
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Lies, Damned Lies and Graphs

Further to Jim Stanford’s excellent critique of the Ontario Conservative platform’s graphs, I am similarly struck by the Liberal platform’s lone graph. “Cutting Ontario’s Taxes on New Business Investment in Half” (page 25) purports to show that corporate tax cuts are required to get the province’s “Marginal Effective Tax Rate”…
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