Taxes

The Budget That Changed Canada: Essays on the 25th Anniversary of the 1995 Budget

— Feb 27, 2020

The Budget That Changed Canada: Essays on the 25th Anniversary of the 1995 Budget is a new book of collected essays celebrating Jean Chrétien and Paul Martin’s historic federal budget that tackled head-on the pressing fiscal challenges facing the nation following nearly 30 years of deficits and mounting debt. The 1995 budget, which reduced program spending and led to balanced budgets, shrinking debt and eventually broad-based tax relief, laid the foundation for more than a decade of economic prosperity and is one of the main reasons Canada weathered the 2009 global recession better than most other industrialized countries.

Alberta’s Lost Advantage on Personal Income Tax Rates

— Feb 20, 2020

Alberta’s Lost Advantage on Personal Income Tax Rates finds that the province’s top combined personal income tax rate is now more than 10 percentage points higher than the top rate in several other energy-producing jurisdictions. Whereas in 2014, Alberta’s top PIT rate was the lowest in North America, now it is the 10th highest following tax increases by the provincial and federal governments, and a reduction of the federal top rate in the U.S.

Should Upper-Income Canadians Pay More Income Tax?

— Jan 23, 2020

Should Upper-Income Canadians Pay More Income Tax? finds that in 2017, the latest year of comparable data, the top 10 per cent of income-earners earned 34.2 per cent of Canada’s total income—yet paid 54.6 per cent of the country’s total income taxes.

Who Bears the Burden of Property Taxes in Canada’s Largest Metropolitan Areas?

— Oct 17, 2019

Who Bears the Burden of Property Taxes in Canada’s Largest Metropolitan Areas? analyzes the ratio of municipal and provincial property tax rates (including education) paid by residents, businesses and industries in Canada’s major urban areas. It finds that across the country, but particularly in the cities of Toronto, Montreal, Calgary, Edmonton and Vancouver, businesses pay much higher property tax rates than residents, which can erode competitiveness and lead to business migration, reduced hiring and investment, and even business closures.

Marginal Effective Tax Rates Across Provinces: High Rates on Low Income

— Aug 27, 2019

Marginal Effective Tax Rates Across Provinces: High Rates on Low Income finds that Canadian families and individuals with annual incomes between $30,000 and $60,000 face marginal effective tax rates near or above 50 per cent, a higher percentage than what Canadians in some top income tax brackets face.

The Impact of the Federal Carbon Tax on the Competitiveness of Canadian Industries

— Aug 22, 2019

The Impact of the Federal Carbon Tax on the Competitiveness of Canadian Industries finds that the federal carbon tax will increase production costs in key sectors and could trigger a phenomenon known as “carbon leakage”—where firms relocate industrial activity (including petroleum and coal-product manufacturing) to countries with less-stringent climate policies.

Recent Taxes Commentaries and Blog Posts

Trudeau government plan would have undermined Opposition ability to hold government to account

Bruce Pardy

The principle of no taxation without representation is central to the concept of democracy.

If history is any guide, COVID-19 will transform Canada in heretofore unknown ways

Livio Di Matteo

When the First World War began, there was no expectation that it would spawn an entirely new tax system.

Ottawa enacts measured, well-targeted response to coronavirus downturn

Niels Veldhuis, Jason Clemens

Appeared in the Financial Post, March 20, 2020

The Trudeau government announced temporary increases to the GST credit and Canada Child Benefit.

Trudeau government rejects almost every principle of historic 1995 Liberal budget

Jason Clemens, Niels Veldhuis

Appeared in the Winnipeg Free Press, March 6, 2020

The national debt will hit an estimated $713.2 billion this year.

Horgan budget makes B.C. less attractive to top talent

Jason Clemens, Jake Fuss, Milagros Palacios

Appeared in Business in Vancouver, March 5, 2020

The government raised the top personal income tax rate from 16.8 per cent to 20.5 per cent.

You can believe in climate science without supporting every proposed climate policy

Ross McKitrick

Appeared in the National Post, March 4, 2020

The benefits of policy should outweigh the costs.

Kenney government fails to restore Alberta’s income tax advantage

Ben Eisen, Tegan Hill

Appeared in the Edmonton Sun, March 4, 2020

The Trudeau government created a new top tax bracket that raised the top federal rate to 33 per cent.

Trudeau government should learn from Chrétien-era tax relief

Tegan Hill, Jake Fuss, Milagros Palacios

Appeared in the Vancouver Province, March 4, 2020

Canada's economy is expected to grow by a tepid 1.6 per cent in 2020.

Nova Scotia budget is balanced, but concerns loom over debt and taxes

Alex Whalen, Jake Fuss

The province projects a $535 million increase in net debt this year alone.

Alberta Court of Appeal rejects carbon tax, protects provincial jurisdiction