Prime Minister Trudeau's letter to Finance Minister Bill Morneau lists 27 priorities—we offer a quick reaction to 13 of these priorities.
Government Spending & Taxes
Recent deficit reduction track record is quite weak, which is why Ontario is still running an $8.5 billion deficit in 2015/16, several years after the recent recession.
Raising tax rates increases revenues at lower tax rates—but as rates rise, a work disincentive effect kicks in, as well as a stronger tax-planning incentive that erodes revenues.
It’s true that in Montreal, our roads are chronically potholed and some of our highways, overpasses and bridges are literally crumbling. But does that come from any general reluctance to invest in public goods?
The just-released Parliamentary Budget Officer report projects deficits in every year from 2016/17 to 2020/21.
An "implicit tax" is implicit only in the sense that it doesn’t officially appear in the income tax code.
A reoccurring narrative in the income inequality debate is that top earners don’t pay their “fair share” of taxes. The data, however, paint a different picture.
While the headlines on Alberta’s recent budget focused on the planned $6.1 billion deficit this year, the reality is that the true deficit will be even larger.
In addition to spending increases, the Notley government is proposing new tax increases on top of the hikes to personal and corporate income taxes that have already come into effect.
More than six years after the recession of 2008-09, eight out of 10 provinces (including Alberta, which released its budget yesterday) are currently in deficit, and the newly formed federal government has committed to falling back into deficit.
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