taxes

The uncertainty that continues to impede the U.S. recovery coupled with political gridlock in Washington poses significant economic threats to not only the United States but also countries like Canada that trade with the U.S. However, imbedded within the many layers of risks lies a significant, long-term opportunity for Canada.

Question: Have you ever felt annoyed at a restaurant when your bill arrived with a mandated tip, thus removing your (monetary) ability to comment on the service? If so, that's about how governments act vis-à-vis travel costs for Canadians, this when governments prevent full competition which would reduce prices.

For example, consider a trip the average Canadian family might take this holiday season.

When the PST rears its ugly head on April 1, 2013, British Columbia’s tax competitiveness will be dealt a major blow as the cost of the investing in the province increases dramatically. Unfortunately, the well-being of BC families will be negatively affected in many ways – none more important than the adverse impact the PST will have on investment in machinery, equipment, and technology – the backbone of a healthy economy.

Shortly before unveiling the provincial budget in March, Quebec Finance Minister Raymond Bachand told reporters that the average family pays enough taxes in Quebec. We couldn’t agree more. This year Quebecers have to wait until June 17 (nearly six months) to celebrate Tax Freedom Day. That is, if the average family in Quebec had to pay all the taxes it owed to all levels of government in advance, they would have to hand-over every single dollar they earned up to June 17—Tax Freedom Day.