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
Part II: The underlying problem is the differential that exists today between personal tax rates on taxable dividends as opposed to capital gains. Read this articleSurplus stripping: We need to fix Canada’s tax rules
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
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
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?
The Trudeau government recently announced the extension of the GST to include digital products and services sold remotely to Canadians by foreign suppliers. This change is sometimes referred to as the “Netflix Tax.” The tax policy change is long overdue, and will ensure foreign suppliers of digital services to Canadians pay their fair share of taxes. The new rules will impart greater integrity to our tax system and prepare Canada to look to the future of digital taxation with clear eyes. Read this articleReforming GST Rules for Foreign Digital Suppliers
This commentary examines the economic effects of the taxation of dividends and capital gains collected via the personal income tax, applied to the supply side of the capital market. I show that taxable dividends and capital gains are highly concentrated at the top of the income distribution, much more so than is labour income. I also argue that, while the evidence is somewhat inconclusive, aggregate savings is relatively insensitive to changes in after-tax returns. This is the first commentary in a three-part series considering reforms to Canada’s approach to taxing capital income. Read this articleThe Taxation of Capital Income in Canada Part I: Taxes on Dividends and Capital Gains
This Commentary presents calculations of effective marginal tax rates on earned income for recipients of the Canada Recovery Benefit. Read this articleMarginal tax rates under the Canada Recovery Benefit