The last two years have not been kind to central banks. Inflation in many countries soared far beyond target, reaching levels not seen in decades. Central bankers have responded with necessary but painful interest rate hikes.
Despite disappointment in the performance of many central banks, let’s not lose sight of key lessons. First, inflation stinks, inflicting most harm on those who can afford it least. Second, central banks are the best institutions we have to make sure it goes away and doesn’t come back. As we head into 2024 and inflation continues to fall, it’s worth remembering why the world established central banks and low inflation targets in the first place.
Until the 1990s, central banks struggled…
‘Tis the season for giving, and as the year ends, many Canadians are planning substantial donations. However, they should consider maximizing those donations in 2023 while full tax relief for charitable giving is still guaranteed. The federal government has yet to table its legislation for reforming the alternative minimum tax (AMT), but if it sticks to its commitments laid out in the 2023 budget, tax relief for charitable giving will be curtailed for some high-income filers in 2024.
Donating to charities can lower our taxes. The charitable tax credit lowers taxes by about half of the amount of donations in excess of $200. And, donated accrued capital gains from gifts of publicly listed securities are exempted from taxable income…
Suggestions that carbon pricing is not working because Canada’s emissions have kept rising miss the mark, as a large chunk of the increase is due to rapid population growth. The country’s energy efficiency has, in fact, improved considerably under the carbon tax introduced by the federal government.
But unfortunately for carbon price supporters, Ottawa has directly contradicted the principle underlying the tax. In late October, it decided to selectively pause its application to heating oil, a fuel used primarily in homes in Atlantic Canada, ostensibly on affordability grounds, but largely viewed as a cynically political move. Quite logically, provincial leaders immediately asked for exemptions covering fuels used in their regions…
