Commentary
The federal Fiscal Monitor data for January 2023
This post summarizes recent developments in the Fiscal Monitor data to help Canadians better understand recent developments in public finances. In addition, we use the monthly data to construct projections for total federal revenue, expenses and the budget balance by the end of the fiscal year. Read this articleThe federal Fiscal Monitor data for January 2023
A capital gains tax reform simulation model
We use data on the distribution of capital gains income across and within income groups to simulate the impact of reforms to increase capital gains tax rates. Readers can use our online tool to explore different possible reforms. A reform that targeted only the highest capital gains income amounts would affect very few families, while raising substantial revenue, and increasing fairness in the tax system. Read this articleA capital gains tax reform simulation model
Pathways to reform of capital gains taxation in Canada
This commentary, an executive summary of a full report. considers the case for increasing taxes on capital gains in Canada and the implications for the upcoming reform of the alternative minimum tax (AMT), slated for release in the 2023 federal budget. Read this articlePathways to reform of capital gains taxation in Canada
The federal Fiscal Monitor data for December 2022
This post summarizes recent developments in the Fiscal Monitor data to help Canadians better understand recent developments in federal public finances. In addition, we use the monthly data to construct projections for total federal revenue, expenses and the budget balance by the end of the fiscal year. Read this articleThe federal Fiscal Monitor data for December 2022
The federal Fiscal Monitor data for November 2022
This post summarizes recent developments in the Fiscal Monitor data to help Canadians better understand recent developments in federal public finances. In addition, we use the monthly data to construct projections for total federal revenue, expenses and the budget balance by the end of the fiscal year. Read this articleThe federal Fiscal Monitor data for November 2022
No ‘free lunch’ with debt-financed government spending
Proponents focus on the average fiscal cost of program spending when the interest rate on government debt is less than the economy’s growth rate. They ignore the potentially large marginal fiscal cost of deficit-financed increases in spending that arise when a higher public debt increases interest rates on government debt and lowers growth rates. Read this articleNo ‘free lunch’ with debt-financed government spending
Canada does not need a U.S.-style student loan forgiveness plan
The Biden administration has announced plans for student loan forgiveness. It would make little sense for Canada to follow suit. That would disproportionately benefit borrowers in the upper half of the income distribution. Read this articleCanada does not need a U.S.-style student loan forgiveness plan
Bay du Nord: A fiscal game-changer for Newfoundland and Labrador?
The recently approved project could significantly improve Newfoundland and Labrador’s long-run fiscal prospects. Read this articleBay du Nord: A fiscal game-changer for Newfoundland and Labrador?
Evaluation of federal transfers to the provinces
The federal equalization program and per-capita block grants such as the Canada Health Transfer and Canada Social Transfer have their critics. But equalization helps to prevent outmigration from “have-not” provinces, and block grants in effect substitute federal taxes for less efficient provincial ones. Read this articleEvaluation of federal transfers to the provinces