Commentary

The Conservative plan for a GST tax holiday in December should be expanded to help the recovery

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Cutting the GST for a short time won’t do much to make life more affordable for families, and it will do nothing to beat inflation. But a GST holiday would get consumers spending more. That would give the economy a boost it might well need, as the recovery faces headwinds this fall from a possibly resurgent coronavirus and from economic shocks in the rest of the world. Read this articleThe Conservative plan for a GST tax holiday in December should be expanded to help the recovery→

Unpacking the Conservative Party’s proposal to boost health transfers to the provinces

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The Conservative Party of Canada proposes to increase the growth rate of the Canada Health Transfer to at least six per cent per year for a decade. We explore the implications of this for overall health transfers and for provincial governments. Read this articleUnpacking the Conservative Party’s proposal to boost health transfers to the provinces→

Which federal party has the best plan for getting Canadians back to work?

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We tend to give other voters the advice to ask themselves the following of any proposal: What problem do we want policy to address and can this policy succeed? In our view, a key policy challenge is reducing long-term joblessness. Read this articleWhich federal party has the best plan for getting Canadians back to work?→

UPDATE: Surplus stripping and the new, costly tax loophole for intergenerational transfers

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Part I: A recently approved private member’s bill is deeply flawed and opens the floodgates to aggressive surplus stripping schemes. It should be fixed. Read this articleUPDATE: Surplus stripping and the new, costly tax loophole for intergenerational transfers→

Canada should harmonize tax credits to enhance fairness and efficiency

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Our proposal represents an incremental step in the direction of a basic income guarantee. Harmonizing the main income tax credits, making the base and tax-back rate suitably progressive, and ensuring they are all refundable would form the basis for a modest basic income. Read this articleCanada should harmonize tax credits to enhance fairness and efficiency→

Are the rich really getting poorer in Canada?

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The rise of small-business incorporation is suppressing taxable incomes of rich Canadians. The growing gulf between top personal tax rates and the low rates paid by small CCPCs is driving the rise of incorporation. Read this articleAre the rich really getting poorer in Canada?→

Fiscal policy in the COVID recession: An early assessment

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The scale and speed of the COVID-19 recession and the fiscal policy response has been remarkable. This commentary shows what has happened since the beginning of the pandemic and discusses the implications for future fiscal policy choices in Canada. Read this articleFiscal policy in the COVID recession: An early assessment→