Why raising capital gains taxes makes sense—yes, really
From the perspective of getting the underlying structure of Canada’s tax system right, increasing capital gains taxes made good sense.
From the perspective of getting the underlying structure of Canada’s tax system right, increasing capital gains taxes made good sense.
Unfortunately, income growth has stalled to rates rarely seen in Canadian history. Only twice in the past century have we lived through more sluggish growth than today—both during serious recessions.
If one wants to see more equity investments in Canada by large institutional funds, then eliminating debt bias in the tax system would be far better than enacting selective mandates.
The risks both provinces are taking are choices that they have the luxury of making. Each province has a strong economy and fiscal capacity. But we should be clear about what those choices are and recognize that neither is a particularly prudent approach.
The task of connecting Canadians is vital for our economic health and well-being. This isn’t easy in a country with relatively few major cities spread out over vast distances, but it would be impossible without trucks and major roads.
Canada should hedge its bets and more aggressively pursue trading arrangements with others. Instead of continuing to resist opening our highly protected and low-productivity sectors—like dairy—we should embrace as many markets as possible.
Rather than trying to prevent or delay business failures, policymakers should focus on fostering new business creation. This shouldn’t be done artificially through subsidies, but rather by removing barriers that hinder startups in the first place.
Saskatchewan’s most recent admission that public funds may be used to cover the cost of the carbon tax for consumers provides an example to other provinces for how to follow suit. Despite the fiscal costs and administrative and logistical challenges, it can be done.
Climate policy isn’t cheap, so it’s natural to want others to pay for it. Excess burdens on Alberta’s oil and gas sector are far away, as the thinking may go, and can therefore be safely ignored. This is wrong.
The federal government plans to spend nearly 24 percent less per person over the next six years. The trouble is, restraining direct federal expenses doesn’t get you very far to balancing the budget. Trimming benefits to high-income seniors, however, would.