The federal government’s projected fiscal balance has gone from a $4.3 billion surplus to a budget deficit that could be as large as $25 billion.
Government Spending & Taxes
While some provinces have taken steps to rein in spending and balance budgets, Ontario is a laggard and Alberta has embarked on a new road to debt.
The federal Liberals delivered their Throne Speech last week, emphasizing the planned middle-class tax cut. Yet there are two major problems with the government's proposed tax reform.
The Ontario government is considering subsidies for the province’s fashion industry, which is a bad a idea for many reasons.
Tax hikes—particularly on upper earners—tend to bring in less revenue for governments than expected because people change their behaviour in ways that reduce the impact of the tax hikes on their tax bill.
Despite a recent report to the contrary, a large body of evidence shows that corporate income taxes are among the most economically harmful taxes.
As Canadian governments struggle with budget deficits and mounting debt, it's important to recognize the potential long-term negative consequences of debt.
If fossil fuels receive more than $2 billion in annual subsidy, let’s end it. And while we’re at it, let’s end the $800 million to wind producers and other subsidies to green energy.
If the carbon tax was in fact revenue neutral, Premier Notley's plan would include a clear list of what taxes are going to be cut.
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