The Liberals’ plan for first-time homeowners is a good start but should be more equitable

Housing

The FHSA would cost up to $1.4 billion annually, but much of the benefit would likely go to high-income households. Changes to the proposed program would make it more fair and more likely to encourage private savings by prospective first-time homebuyers. Read this articleThe Liberals’ plan for first-time homeowners is a good start but should be more equitable

Canada should harmonize tax credits to enhance fairness and efficiency

using a calculator for taxes

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?

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?

Basic Income or Welfare Reform? A summary of the BC Basic Income Panel Report

On January 28, the BC Expert Panel on Basic Income issued its final report. Media coverage of the report naturally focussed mainly on what the panel did not recommend – a basic income program – but the report offers far more than that. Read this articleBasic Income or Welfare Reform? A summary of the BC Basic Income Panel Report

Evidence on Behavioural Effects of Higher Capital Gains Taxes in Canada

The debate over whether to increase the tax rate hinges in part on the extent to which a higher tax rate would distort investment decisions and reduce incentives for Canadians to invest. This commentary sheds light on this debate by analyzing the effects of a tax policy change in the mid-1990s that increased the effective capital gains tax rate. They find that the new higher rate on capital gains tax had no adverse effect on cumulative adverse effects on capital gains realizations. Read this articleEvidence on Behavioural Effects of Higher Capital Gains Taxes in Canada

Wealth Inequality: A Long-Term View

The distribution of wealth in Canada is a hot topic, yet longer term trends are not frequently discussed. Piecing together many studies shows that the wealth share of the top one percent, stable over most the post-war era, may again be increasing. A broader view however shows there have been gains for the middle class and decreasing shares of wealth for the top ten percent. Read this articleWealth Inequality: A Long-Term View