Behind the Numbers

Entries Tagged as 'Taxes and Tax Cuts'

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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The Truth Behind Corporate Tax Cuts (in one chart)

August 19th, 2014 · · Corporations, Economy & Economic Indicators, Taxes and Tax Cuts

Corporate Canada has reached a milestone in 2014. For the first time ever, it is now hoarding more cash than the national debt. What that means is that in one fell swoop, Canada’s corporations could pay off our entire national debt with just the cash sitting in their banks accounts, nevermind their other assets.

Corporate cash hoarding really ramped up as corporate tax rates were slashed in half from 31% in 1997 to 16% today. Corporate Canada argued in the late 1990s that they’d use that extra cash to build more factories, train more workers and make Canada more productive. Turns out … not so much.

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Taxes: A Conversation Whose Time Has Come

July 30th, 2014 · · Economy & Economic Indicators, Ontario, Taxes and Tax Cuts

It’s official.

An adult conversation about taxes is beginning to take shape.

Way back in 2009, CCPA research associate Hugh Mackenzie published an editorial in the Toronto Star entitled “Can we have an adult conversation about taxes?”– a challenge to governments to start looking at their revenue problems in a grown up way.

This week, the Globe and Mail has published an important piece by C.D. Howe Institute Research Fellow Chris Ragan, pointing out, lo and behold, that Ontario has a revenue problem, not a spending problem.

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Who Really Benefits from Canada’s Tax Giveaways?

May 29th, 2014 · · Economy & Economic Indicators, Taxes and Tax Cuts

On Tuesday, the Parliamentary Budget Office released their long awaited costing and distributional analysis of the tax measures implemented since the Harper government has been in power. In essence, they asked what is the cost of these tax cuts, who benefits, and to what degree.

The Price Tag of the Tax Cuts

The total cost of the tax cuts implemented by this government is $30.4 Billion in 2014 ($17.1B on the income tax side and $13.3B from the GST/HST cuts). This is in addition to the cuts to the federal corporate income tax, which the PBO report did not look at but Jim Stanford has estimated to cost around $13 billion in annual revenue.

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Behind the #ONelxn Spin: The reality behind Hudak’s 100,000 job cut promise

May 12th, 2014 · · Employment and Labour, Ontario, public services

At a campaign stop on Friday morning, Ontario Progressive Conservative Leader Tim Hudak pledged to cut 100,000 jobs from the public service in Ontario in order to balance the budget.

According to the Globe and Mail’s description of the announcement, “Mr. Hudak did not say exactly which jobs would be cut, but promised not to touch doctors, nurses or police officers. He suggested instead that he would mostly look to eliminate administrative positions and to privatize some services. The Tories have, in the past, talked about privatizing gambling and the LCBO, among other things.”

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Ontario Budget Watch 2014: What we’re looking for

April 28th, 2014 · · Ontario

This week’s 2014 Ontario budget won’t contain many surprises – much of what will be in the budget has already been announced – but it should contain core principles to guide the province toward greater shared prosperity.

Here are 5 guiding principles we at the CCPA-Ontario office will be watching for in the budget:

1. End austerity

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Don’t throw taxes under the bus

April 15th, 2014 · · Ontario, public services, Taxes and Tax Cuts

As Ontario inches toward a potential spring election showdown, Premier Kathleen Wynne is making clear that she wants public transit to become the ballot box question.

That’s heartening, because there is majority public support for greater transit investments after too many years of political and traffic gridlock.

But it looks like she’s throwing needed new taxes under the bus in the process.

In her most recent announcement, Wynne committed to $29 billion in transit and transportation improvements over the next 10 years.

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The political fight for Ontario’s middle class

March 20th, 2014 · · Ontario, Poverty and Income Inequality, Taxes and Tax Cuts

“Middle class” is the new “working Ontario families.” Every second speech and press release here contains it now. – Adrian Morrow, Globe and Mail reporter, Queen’s Park, Twitter, March 20, 2014.

With election fever mounting in Ontario, the political field is quickly crowding around the middle of the income spectrum in search of votes.

And – surprise, surprise – low taxes are dominating the list of enticements.

NDP Leader Andrea Horwath is insisting she’ll reject any provincial budget that includes asking Ontario’s middle class to pay more taxes or tolls.

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