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?
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
While the economic and fiscal disruptions from COVID-19 were substantial, provincial governments across Canada fared far better than many anticipated. The latest data from Statistics Canada reveals the scale of the shock — with important implications for not only provinces, but also the federal government. Read this articleThe effect of COVID on provincial finances
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
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
Recently, the Trudeau government announced it would increase the federal backstop carbon levy to $170 per tonne between now and 2030. This backgrounder considers options for fiscal policy reform in Alberta that would be made possible by the provincial government repatriating the full amount of the carbon levy (most of which is now collected by Ottawa and distributed to Albertans in lump sum transfers) while also instituting a harmonized sales tax. These options include almost entirely closing the province’s “fiscal gap” and thus essentially solving its current fiscal problems or eliminating both personal and corporate income taxes, thus creating a more economically efficient and easily understood “tax advantage” than Alberta has ever enjoyed in the past. Read this articleMaking the Best of It: Options for Carbon levy Revenue in Alberta
Provincial governments across Canada face a conflict of interest surrounding the policy treatment of alcohol, tobacco and gambling. On the one hand, all provinces derive substantial revenues from “sin taxes” or from providing these goods and services through government monopolies. These revenues flow into consolidated revenue funds for the year they are collected and so governments are reliant on them to fund current programs. On the other hand, governments have a mandate to promote public health, all of which are negatively affected by alcohol, tobacco and gambling addictions. This commentary explores the conflict of interest surrounding sin taxes. It also considers policy proposals for setting aside a non-trivial share of all sin tax revenue in a special fund designed to generate a lasting stream of revenue that can be used to finance social support projects an initiatives. Read this articleThe Fiscal Wages of Sin
The first part of this 2021 edition of the Bilan de la fiscalité au Québec presents the tax announcements made by the Québec and federal governments, and by those of the other provinces, since the previous edition of the report. The next two sections compare Québec against the other Canadian provinces in terms of taxation. The fourth section presents an overview of tax expenditures in Québec and evidences the choices made regarding the different sources of tax revenues. Then, two sections examine taxation from different angles, namely, households (net tax burden) and individuals (profile of Québec taxpayers). Finally, the last section looks at various indicators of income inequality and how governments reduce inequality through taxation. Read this articleHighlights of interprovincial tax comparisons: Bilan de la fiscalité au Québec 2021 Edition
This commentary examines recent differences in growth rates and interest rates at the federal and provincial levels in order to estimate the future paths of public-sector debts. The results provide a novel perspective on a recurring theme in Canada’s debt sustainability debates—namely, that Ottawa is in a better position than most provinces to stabilize the debt-to-GDP ratio. Read this articleFiscal Risks and Government Debt in Canada: The Implications of Interest Rate and Growth Rate Volatility
