Our high income tax rates discourage productive economic activity and put Canada at a competitive disadvantage
By Jake Fuss and Tegan Hill The Fraser Institute On July 8, the government of Prime Minister Justin Trudeau will release a “snapshot” of federal finances, the first such update since the COVID-19 crisis began. The government may also soon look to raise taxes to try to increase government revenue, either to finance new spending…
By Jake Fuss, Tegan Hill and Alex Whalen The Fraser Institute As the federal and provincial governments shift their focus to economic recovery, there will be heightened calls for fiscal stimulus in an attempt to kick-start the economy. However, a new study by the Fraser Institute demonstrates that, based on past experience, stimulus measures will…
Welfare reform in the 1990s provides a starting point for reforming health care today
By Jake Fuss and Bacchus Barua The Fraser Institute On Wednesday, Alberta’s Fair Deal Panel issued its report detailing 25 policy recommendations to expand the province’s influence within the Canadian federation and enhance provincial autonomy. However, one crucial policy option was not discussed at length – the potential shift of health-care decision-making powers to the…
Rising government debt can dampen economic growth and divert billions of dollars away from important public priorities
By Jake Fuss and Alex Whalen The Fraser Institute Just three months ago, provincial Finance Minister Karen Casey released a budget projecting an operating surplus, which would have been the Nova Scotia’s fifth consecutive balanced budget. However, due to COVID-19, circumstances have changed dramatically and the province now expects to run a large deficit this…
Increasing the federal tax would be anti-investment, anti-entrepreneurship, anti-innovation and anti-green
By Niels Veldhuis and Jake Fuss The Fraser Institute At a time when the country faces momentous economic challenges, it’s hard to think of a more damaging policy than a capital gains tax hike. Yet rumours persist that prior to the COVID-19 crisis and economic downturn, that’s exactly what the federal government planned to do.…
By Jake Fuss and Milagros Palacios The Fraser Institute Have you ever wondered how much you actually pay in taxes each year? While tax returns help us understand how much income tax we pay, it’s difficult for most Canadians to calculate their total tax bill. In Canada we pay many taxes to the federal, provincial…
By Jake Fuss and Finn Poschmann The Fraser Institute According to a Parliamentary Budget Officer (PBO) report released this week, the federal government’s plan to increase the basic personal income tax deduction will cost nearly $7 billion annually when fully implemented. This is not only higher than what the Liberals anticipated during last fall’s election…
Canada’s economy is weakening with storm clouds on the horizon while federal finances are woefully unprepared for a recession
By Jason Clemens, Jake Fuss and Milagros Palacios The Fraser Institute It’s hard to recall a time when Canada’s finances were so perilously close to rapidly deteriorating with seemingly little or no interest in Ottawa. Federal Finance Minister Bill Morneau has been making the rounds since releasing the fall economic update last month, reassuring Canadians…
The federal government can’t continue to ignore the warning signs of a slowing economy. It should limit discretionary spending now
By Tegan Hill and Jake Fuss The Fraser Institute The recently-released Economic and Fiscal Update demonstrates the federal government’s proclivity for marked increases in deficit-financed spending despite warning signs of a slowing economy. New borrowing and a larger deficit increase the risk to federal finances should a recession occur. The federal update pegs the deficit…
We need smart tax cuts that improve incentives for workers, entrepreneurs and investors, along with a balanced budget
By Jason Clemens, Jake Fuss and Tegan Hill The Fraser Institute Finance Minister Bill Morneau recently confirmed the federal government’s intention to reduce personal income taxes for everyone except “higher-income earners.” With total taxes (federal, provincial and local) consuming 44.7 per cent of the average family’s income in 2019, it’s easy to see why Canadians…