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  • Canada’s Fossil-Fuelled Pensions June 22, 2018
    The British Columbia Investment Management Corporation is?the steward of BC’s public pensions, but bankrolls companies?whose current business models exceed the climate change targets agreed to in the Paris Agreement to which Canada is a signatory. The pensions of over 500,000 British Columbians and assets worth $135 billion are managed by the Corporation—-one of Canada's largest […]
    Canadian Centre for Policy Alternatives
  • Imagine a Winnipeg...2018 Alternative Municipal Budget June 18, 2018
    Climate change; stagnant global economic growth; political polarization; growing inequality.? Our city finds itself dealing with all these issues, and more at once. The 2018 Alternative Municipal Budget (AMB) is a community response that shows how the city can deal with all these issues and balance the budget.
    Canadian Centre for Policy Alternatives
  • Why would a boom town need charity? Inequities in Saskatchewan’s oil boom and bust May 23, 2018
    When we think of a “boomtown,” we often imagine a formerly sleepy rural town suddenly awash in wealth and economic expansion. It might surprise some to learn that for many municipalities in oil-producing regions in Saskatchewan, the costs of servicing the oil boom can outweigh the benefits. A Prairie Patchwork: Reliance on Oil Industry Philanthropy […]
    Canadian Centre for Policy Alternatives
  • CCPA's National Office has moved! May 11, 2018
    ? The week of May 1st, the Canadian Centre for Policy Alternatives' National Office moved to 141 Laurier Ave W, Suite 1000, Ottawa ON, K1P 5J2. Please note that our phone, fax and general e-mail will remain the same: Telephone: 613-563-1341 | Fax: 613-233-1458 | Email:?ccpa@policyalternatives.ca ?
    Canadian Centre for Policy Alternatives
  • What are Canada’s energy options in a carbon-constrained world? May 1, 2018
    Canada faces some very difficult choices in maintaining energy security while meeting emissions reduction targets.? A new?study by veteran earth scientist David Hughes—published through the Corporate Mapping Project, the Canadian Centre for Policy Alternatives and the Parkland Institute—is a comprehensive assessment of Canada’s energy systems in light of the need to maintain energy security and […]
    Canadian Centre for Policy Alternatives
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Archive for 'HST'

Five things to know about the 2018 Alberta budget

On March 22, the NDP government of Rachel Notley tabled the 2018 Alberta budget. I’ve written a blog post discussing some of the major ‘take aways’ from the standpoint of Calgary’s homeless-serving sector (where I work). Points made in the blog post include the following:? this was very much a status quo budget; Alberta remains […]

Ten proposals from the 2018 Alberta Alternative Budget

The 2018 Alberta Alternative Budget (AAB) was released yesterday—it can be downloaded here. An opinion piece I wrote about the AAB appeared yesterday in both the Calgary Herald and the Edmonton Journal. Inspired by the Alternative Federal Budget exercise, this year’s AAB was drafted by a working group consisting of individuals from the non-profit sector, […]

Ten considerations for the next Alberta budget

On November 17, the working group of the Alberta Alternative Budget (AAB) sponsored a one-day workshop at the University of Alberta. The event’s main purpose was to discuss recent developments in Alberta public policy, as well as expectations for the upcoming Alberta budget. Twenty speakers presented in total. In light of what was discussed at […]

Ten things to know about the 2016-17 Alberta budget

Over at the web site of the Calgary Homeless Foundation, I have a blog post titled: “Ten things to know about the 2016-17 Alberta budget.” The link to the post is here. Enjoy and share:

Ontario Budget: All Quiet on the Revenue Front

As others have noted, last weeka€?s Ontario budget combined modest social investments in areas requested by the NDP with austerity for overall expenditures. Ontario program spending, already the lowest per capita of any province, will be subject to ongoing cuts relative to inflation. This paradox on the expenditure side of the ledger reflects a vacuum […]

McGuintya€?s Business Tax Breaks

An interesting nugget in last weeka€?s Drummond report is Table 11.1, an updated version of Table 2 from a€?Ontarioa€?s Tax Plan for Jobs and Growtha€? (2009). It provides a sectoral breakdown of the McGuinty governmenta€?s recent business tax breaks: HST input tax credits, cutting the corporate income tax, and eliminating the corporate capital tax. The […]

Ontario NDP Platform: The Full Monty

Today, the Ontario NDP presented its comprehensive platform costing, including all policies announced during the election campaign. A popular theme among commentators has been that platform costings are unrealistic given the deteriorating economic outlook. As Andrea Horwath noted, her platform includes significant contingency funds. It is also cautiously built on the fiscal framework set out […]

The Ontario NDP Platform

Pollsters tell us that Ontario’s New Democrats??may double their seat total in next month’s provincial election. It’s also entirely conceivable that they could??be part of a coalition government at Queen’s Park.??But what’s actually in the party’s??election platform? One central feature of the NDP’s??proposals is to implement a??tax credit??for companies that hire new workers. The tax […]

So the BC HST Was Defeated. Now What?

Earlier today, Elections BC announced the much anticipated HST referendum results. British Columbians have voted to scrap the HST. The best part about having the results is that now we can move on from the narrow issue of what type of sales tax is better and focus our energies on some of the bigger issues […]

Burned by B.C.’s Toxic HST Debate

a€?The fact that the Clark governmenta€?s Frankenstein HST hybrid will significantly reduce provincial sales tax revenue at a time when public services are already under intense fiscal pressure is a powerful and principled reason to throw the whole package out in the referendum, and start the debate from scratch.a€? I may live in Ontario, but […]

BC to Raise Corporate Taxes

Amazingly, BCa€?s government has joined its official opposition in proposing to restore the provincial corporate income tax rate from 10% to 12%. The same government that cut from 12% to 10% would now reverse itself as part of a last-ditch effort to save the HST. Revenue from a higher corporate tax rate would help finance […]

Economic Models and Tax Policy

Over at Worthwhile Canadian Initiative (WCI), Stephen Gordon reasonably argues that economic models can be useful for policy analysis even if they lack the predictive power needed for forecasting. He writes: A well-designed model will be able to reproduce the main features of interest of the real world. More importantly, it will also be able […]

We told you so: HST introduction a factor behind GDP drop in July

Among the concerns about the HST that we at the CCPA have raised was the poor timing of the tax change. From my pre-budget piece last September: If British Columbians respond to the HST by reducing their consumer spending, the timing of the HST introduction may actually slow down the economic recovery, which should be […]

The HST and Consumer Prices

This morning, Statistics Canada reported that the implementation of Harmonized Sales Tax in Ontario and British Columbia helped drive the national inflation rate from 1.0% in June to 1.8% in July. By comparison, the Bank of Canadaa€?s core inflation rate (which excludes tax changes and volatile items) edged down from 1.7% to 1.6%. However, annual […]

Will the HST boost job growth and over what timeframe?

As BC and Ontario have now started paying the HST at the till, many people may be wondering when exactly can we expect to see those jobs postings opening up. This is a good question. According to analysis commissioned by the BC government from economist Jack Mintz, titled British Columbia’s Harmonized Sales Tax: A Giant […]

HST Without Harmonization

A recent letter from economists nicely summarized the two main theoretical arguments in favour of the HST: a€?Businesses, large and small, will face lower administrative costs from complying with one sales tax system instead of two. Lower business costs, especially on capital equipment, will encourage investment and economic activity.a€? Both arguments make sense in a […]

The new Grecian formula: still toxic

The latest issue of the quarterly??Economic Climate for Bargaining publication that I produce has just been posted on CUPE’s website. In this issue I have pieces about: the new spectre that is haunting Europe, this time??of a public debt crisis impact analysis of Ontario’s HST tax reform by income group, already discussed below some analysis […]

Duelling HST Studies: Voodoo Economics from Ontario Finance?

On Tuesday, the Ministry of Finance released a€?Ontarioa€?s Tax Plan for Jobs and Growth: Technical Paper on How the Tax Changes Affect People.a€? This study is an attempt to counter the Statistics Canada study released by the NDP a month ago. Until recently, proponents were claiming that the HST will simultaneously deliver huge savings to […]

Ontario’s great HST tax shift

There have been clouds and clouds of smoke generated about the impact of Ontario’s impending introduction of its Harmonized Sales Tax.????Fortunately there is finally now some substance out there in terms of a detailed analysis conducted by Statistics Canada that was recently released by the Ontario NDP.?? And what is shows is quite surprising. Much […]

McGuinty, the CCPA and the HST

Ontario Premier Dalton McGuinty has taken a shine to the Canadian Centre for Policy Alternatives (CCPA). Over the past month, he and other Liberals have repeatedly cited it. Indeed, McGuinty invoked the CCPAa€?s name four times in the provincial legislature on February 17. However, he first did so the day before that: Ms. Andrea Horwath: […]

Open Ontario: Kinsella vs. Hudak

Yesterday afternoon, I caught the subway down to Queena€?s Park to find out whether the throne speech would shed any light on the provincial governmenta€?s privatization plans. As it turned out, the speech included only a couple of lines on Crown corporations. But I ran into blogger extraordinaire Warren Kinsella at the legislature and note […]

Ontario Budget Advice

Last Monday, I testified twice to the Ontario legislaturea€?s finance committee: as an “expert witness” and then on behalf of the United Steelworkers. I emphasized the provincial deficita€?s manageability, the folly of trying to reduce it through cutbacks or privatization, the importance of maintaining tax rates to bolster future revenues, and the advantage of targeted […]

CFIB on Ontarioa€?s Budget: A Reality Check

Ontarioa€?s pre-budget consultations include a session for which each party caucus selects an a€?expert witness.a€? This year, the Liberals invited Warren Jestin from Scotiabank, the Conservatives invited Catherine Swift from the Canadian Federation of Independent Business (CFIB) and the NDP invited me. In general, my role was not to engage with the other witnesses. The […]

HST and Manufacturing

Advocates of the Harmonized Sales Tax often suggest that it will support Ontarioa€?s beleaguered manufacturing sector. They emphasize that the current Provincial Sales Tax applies not only to finished products purchased by consumers, but also to some inputs purchased by businesses. As one business sells components to another, sales tax could be paid repeatedly along […]

HST Revenue Loss

Public debate in Ontario tends to frame sales-tax harmonization either as an unjustified “tax grab” or as a needed contribution to the deteriorating provincial budget. ??Both views incorrectly assume that the HST will increase??government revenues. In fact, the original proposal was more or less revenue neutral. Removing sales tax from business inputs and cutting personal […]

Jack Mintz Eats Up Ontarioa€?s Budget

This past week, Jack Mintz issued a report (PDF) praising Ontarioa€?s last provincial budget. I like East Side Marioa€?s because it features both all-you-can-eat bread and all-you-can-eat salad. So, it is not surprising that a corporate tax-fighter would love a budget featuring both corporate income tax cuts and the removal of sales tax from business […]

HST Opacity

A couple of days ago, I took part in a TV Ontario panel about sales-tax harmonization. I emphasized a couple of points that will be familiar to readers of this blog. First, harmonization is unlikely to have much effect on capital investment because many capital goods are already exempt from the existing provincial sales tax. […]

Droppin’ some HST

The province-wide revolt over BC’s looming Harmonized Sales Tax is reminiscent of protests a generation ago when the HST’s federal parent, the Goods and Services Tax, was born. The rationale for that shift was similar to that of the HST: to switch from an invisible tax paid by producers (the Manufacturers’ Sales Tax) that was […]

Tax Competitiveness 2009: Flogging a Dead Horse

Should we care that the marginal effective tax rate on capital is higher in Prince Edward Island than in Serbia? Of course, this question is a joke. But the C. D. Howe Institute actually did put out a press release (PDF) last week singling out PEI for its allegedly high business taxes compared to an […]

Harmonizationa€?s False Premise

Advocates of harmonizing provincial sales taxes with the federal GST almost always argue from the premise that, whereas the GST only covers consumer purchases, provincial sales taxes apply to all business inputs. Harmonization is then presented as a means of removing the sales tax from business purchases of machinery and equipment to promote new investment. […]