Ho, Ho, Hold the GST Holiday
The holidays may be about eating to excess, but Ottawa’s “GST Holiday” is little more than “fiscal junk food”. On this episode of the CDHI podcast, Institute President and CEO Bill Robson and Fellow-in-Residence Don Drummond tell our Michael Hainsworth why a two-month tax break isn’t making these public policy elves jolly this holiday season.
Graph of the Week: Business Investment Per Worker Falls 23 Percent Below 2014 Peak
Business investment is essential to productivity, wages and Canadians’ living standards. Alarmingly, investment has lagged growth in the workforce for a decade. Another fall in the third quarter of 2024 left real investment per available worker 23 percent below its 2014 peak. A two-month GST “holiday” is the latest example of fiscal policies that boost […] Robson, Drummond – Junk Fiscal Policy Can Cost More than Mere Billions
From: William B.P. Robson and Don DrummondTo: Canadian taxpayersDate: December 05, 2024Re: Junk Fiscal Policy Can Cost More than Mere Billions Canadian governments are loudly zealous about protecting us from potentially addictive stuff that could hurt our physical and mental health – think of junk food, booze and other drugs, or misinformation and other online […] Permanently Higher Federal Spending Threatens GST Hike: C.D. Howe Institute Fiscal & Tax Working Group
November 27, 2020 – A GST hike could be looming on the horizon if Ottawa starts down the road of permanent post-pandemic spending increases, warns a new report from the C.D. Howe Institute.
The Fiscal and Tax Working Group stressed that now is not the time for permanent post-pandemic spending increases or matching tax increases. However, if Canadians want to see a significant increase in the level of ongoing program spending post-pandemic, they must be aware that it will require an increase in taxes across the income spectrum to be fiscally sustainable.
The group of experts from the private sector and academia held their third and fourth meetings on October 6, 2020, and November 11, 2020. The group calculated that…
William Robson on BNN Bloomberg – GST Holiday Would be a ‘Short-Term High’ for Canadians
William B.P. Robson, President and CEO of the C.D. Howe Institute, warns Ottawa’s proposed GST break may bring temporary relief to Canadians but could be harmful long-term.
Brian Lewis – Tis the Season for Gimmicky Economic Policy
From: Brian Lewis To: Concerned Canadians Date: November 26, 2024 Re: Tis the Season for Gimmicky Economic Policy Hot on the heels of Ontario Premier Doug Ford’s $200 “taxpayer rebate,” Prime Minister Justin Trudeau has unveiled a time-limited sales tax break on select holiday wares, followed by a $250 “Working Canadians Rebate.” At first glance, these may seem […] William Robson and Don Drummond – GST holiday feeds Canada’s addiction to populist junk fiscal policy
Published in The Globe and Mail.
Canadian governments are loudly zealous about protecting us from potentially addictive stuff that could hurt our physical and mental health – think of junk food, booze and other drugs, or misinformation and other online “harms.” Yet they themselves are pushing fiscal junk. The federal government’s latest – a goods and services tax holiday from mid-December to mid-February, 2025, and a $250 handout to everyone with earned income under $150,000 – is yet another feel-good move that undermines our fiscal and economic health.
As with the Ontario government’s recent pledge of a $200 handout for its taxpayers, one big question is: Will the bribe buy the government a bounce in the polls? If…
Tingting Zhang – Canada’s Housing Crisis: A Growing Challenge for Vulnerable Populations
To: Canadians concerned about housingFrom: Tingting ZhangDate: November 22, 2024Re: Canada’s Housing Crisis: A Growing Challenge for Vulnerable Populations The dream of a safe, affordable place to call home is slipping away for millions of Canadians. As rents soar and waitlists for social housing stretch for years, Canada faces an unprecedented housing crisis that disproportionately […] Fiscal Accountability by the Letters: The Report Card for Canada’s Senior Governments, 2024
Canadians and their elected representatives know too little about how Canada’s federal, provincial and territorial governments tax and spend. The explosion of spending and debt since the COVID-19 pandemic has made transparency in government budgets and financial statements, and the information they should reveal about governments’ capacity to deliver public services, more important than […] Laurin, Dahir – The Unreliability of Capital Gains Tax Revenue Projections: A Wake-Up Call
From: Alexandre Laurin and Nick Dahir To: Tax observersDate: November 13, 2024Re: The Unreliability of Capital Gains Tax Revenue Projections: A Wake-Up Call Recent data from Statistics Canada highlight the volatility of capital gains realizations, casting doubt on the reliability of projected revenues from the recent capital gains tax hike – a point we emphasized in […] Alex Laurin and Nick Dahir – Don’t count capital gains tax revenues before they hatch
Published in the Financial Post.
April’s federal budget announced significant changes to capital gains taxes, projecting an additional $10.6 billion in corporate income tax (CIT) and $8.8 billion in personal income tax (PIT) over the next five years. But our recent analysis shows these estimates are highly uncertain and rest on a number of assumptions that may not hold true. As Parliament considers enshrining these tax changes into law, legislators should look beyond projected revenues and focus on ensuring that tax policy supports the healthy and dynamic economy Canadians need.
Effective June 25, the capital gains inclusion rate for corporations rose from one-half to two-thirds. For individual taxpayers, only gains…
Brian Lewis – What to Watch for in the Ford Government’s Fall Economic Statement
Published in TVO Today.
Ontario’s upcoming fall economic statement presents the Ford government with an opportunity for strategic policy announcements ahead of a possible 2025 election. Traditionally an update on the province’s fiscal outlook, this year’s FES is likely to be shaped more than usual by political considerations — for example, the government plans to issue a $200 cheque to every Ontarian.
The Ford administration faces a delicate balancing act: introducing new initiatives while keeping an eye on provincial finances amid economic uncertainties. At a minimum, the FES offers insight into the government’s fiscal outlook and reports on key policy priorities. It should also tell us whether the province is focused on…