Bev Dahlby – On Fiscal Anchors
From: Bev Dahlby To: Canadian debt watchers Date: September 16, 2020 Re: On Fiscal Anchors Current low interest rates have led to complacency concerning government deficits and higher levels of public debt. However, the debt sustainability equation is only an accounting relationship and does not incorporate the economic impacts of increased borrowing. Even if the debt-to-GDP ratio is falling […] Assessing the Canada Revenue Agency: Evidence on Tax Auditors’ Incentives and Assessments
CRA Auditor Incentives Raise Fairness Concerns Authors Kenneth Klassen and Nick Pantaleo explore the pressure on the CRA to raise more tax revenues, as well as assess the efficiency of the audit process and the fairness of results. Incentives to increase assessments were amplified by recent funding for the CRA that carries an expectation that […] Réfléchir Aux Finances Publiques Pour Après-après-demain – La Presse Opinion
Ce n’est pas demain la veille qu’on redressera les finances publiques, mais il n’est pas trop tôt pour y réfléchir, pour amorcer la nécessaire conversation sur la pertinence de ce redressement et les meilleurs moyens d’y parvenir.
À ce sujet, on suivra avec intérêt le symposium que tiendra la semaine prochaine la Chaire en fiscalité et en finances publiques de l’Université de Sherbrooke. Aujourd’hui, je propose quelques repères pour le débat. Mes chiffres sont tirés du bilan de la fiscalité publié par la même chaire de recherche, que dirige Luc Godbout*.
Du côté des dépenses, le premier défi est de sevrer les individus, les entreprises et l’économie en général des mesures déployées pendant la crise, en orchestrant un…
Don Drummond – Don’t Forget A Fiscal Anchor For The Speech From The Throne
From: Don Drummond To: The Office of the Prime Minister Date: August 24, 2020 Re: Don’t Forget a Fiscal Anchor for the Speech from the Throne Prime Minister Trudeau has indicated the government will disclose expensive initiatives to Canadians in a Speech from the Throne on September 23. Without also proposing very large tax increases, this new […] Van Dijk, Hodgson – Addressing Canada’s Covid-19-induced Public Debt Ailment
From: Peter van Dijk and Glen Hodgson To: Canadians Concerned about Government Debt Date: August 17, 2020 Re: Addressing Canada’s COVID-19-induced Public Debt Ailment Last month’s federal fiscal snapshot projects a pandemic-induced deficit of $343 billion and a debt-to-GDP ratio jumping from 30 to 49 percent this fiscal year. Don’t forget provincial debt, too. An Ontarian’s combined government debt-to-GDP […] James Feehan – Andrew Furey Takes On A Fiscal Nightmare
From: James Feehan To: Those who worry about Newfoundland and Labrador’s solvency Date: August 14, 2020 Subject: Andrew Furey takes on a fiscal nightmare On August 19, Andrew Furey M.D. will be sworn in as Premier of Newfoundland and Labrador. He was elected by the governing Liberal Party to succeed the outgoing premier, Dwight Ball. […] The ABCs of Fiscal Accountability: Grading Canada’s Senior Governments, 2020
COVID Threatens Governments’ Fiscal Accountability Many of Canada’s senior governments have made impressive progress with the transparency and accessibility of their financial presentations, but these gains are under threat from the COVID pandemic. In the C.D. Howe Institute’s annual report card on the accessibility, timeliness and reliability of governments’ financial documents, the authors assign grades […] A Wealth Tax Won’t Work To Fix The Coming Debt Crisis: We Need A Consumption Tax Like The Gst – Globe And Mail Op-ed
The federal fiscal snapshot in July projects a pandemic-induced deficit of $343-billion in 2020-21 and a debt-to-GDP ratio jumping to 49 per cent from 30 per cent. Don’t forget provincial debt, too. An Ontarian’s combined government debt-to-GDP ratio will push toward 100 per cent of GDP and beyond.
Such a high debt burden is an ailment that will become threatening when the economy returns to normal operations and interest rates rise. Just as we have done with the COVID-19 pandemic, we should address this ailment head-on. Fortunately, there is an evidence-based treatment plan.
The least painful treatment is to rely on economic growth to reduce our debt burden. However, it is risky to rely on growth alone when interest rates…
Miles Wu – Lessons From Abroad
From: Miles Wu To: Canadian policymakers Date: August 6, 2020 Re: Lessons from Abroad China’s second quarter economic report – GDP up 3.2 percent year over year, reversing the 6.8 percent first quarter drop – was watched closely around the world, as it offered early glimpses of post-COVID economic recovery. Unpacking the numbers yields some […] Van Dijk, Hodgson – Developing A Credible Public Debt Management Plan
From: Glen Hodgson and Peter van Dijk To: Canadians Concerned about Government Debt Date: July 23, 2020 Re: Developing a Credible Public Debt Management Plan The federal government’s fiscal snapshot revealed the impact of the pandemic-induced shutdown on Canada’s public finances, and it isn’t pretty. The projected $343 billion deficit for this fiscal year will […] Laurin, Robson, Wu – Was Ottawa’s Frightening Fiscal Snapshot A Prelude To Something Worse?
From: Alexandre Laurin, William B.P. Robson and Miles Wu To: Canadians Concerned about Government Debt Date: July 20, 2020 Re: Was Ottawa’s frightening fiscal snapshot a prelude to something worse? The July 8 federal fiscal snapshot unveiled numbers so awful that a reasonable person might suspect an expectations-management exercise. The projected deficit of $343 billion for this year […] After the fiscal snapshot, a horror movie? – Financial Post Op-Ed
Last week’s federal fiscal snapshot unveiled numbers so awful that a reasonable person might suspect an expectations-management exercise. The projected deficit of $343 billion for this year was nearly $100 billion worse than the Parliamentary Budget Officer’s June 18 projection and $40 billion worse than the most pessimistic numbers circulating. If realized, it would be the same as last year’s total federal revenues. It would mean the federal government will borrow more than half the money it spends this year. It would increase Ottawa’s net debt by almost half in one year.
Adding to the impression in the snapshot’s numbers of an unfolding fiscal catastrophe was the absence in its commentary of either any…