Tag: Individual Taxes

A capital gains tax reform simulation model

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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

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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 case for a vaccine tax

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A vaccine tax is less coercive and more socially efficient than a vaccine mandate. We estimate that a tax of $1,500 per vaccination or booster per year is needed to effectively encourage opponents to get their shots. This amount is large enough to be salient to vaccine-hesitant, yet small compared to penalties imposed on daily smokers and heavy drinkers – where the economic case for penalties is far weaker than it is for COVID-19. Read this articleThe case for a vaccine tax→

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

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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→

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?→

Reforming GST Rules for Foreign Digital Suppliers

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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→