Category Tax policy
From tax policy to tax politics.
Notes prepared for a Session in Honour of Robin Boadway II: Emerging Issues in Tax and Transfer Policy, held at the Canadian Economics Association meetings in Toronto, June 1, 2024. The fundamental principles of optimal tax analysis have not changed greatly over the past 50 years. The constraints faced by tax policy makers have. The […]
Do the self-employed opt out of the Canada Pension Plan?
In 2017, anyone with earnings was required to pay $4.95 in Canada Pension Plan contributions for every $100 of earnings (up to a maximum earnings threshold of $51,800 – rates here). For the employed, their $4.95 CPP/QPP contribution was matched by an equal contribution by their employer. However self-employed individuals are required to pay the […]
Pain, brioche, and the language of taxation
Ireland's Supreme Court recently ruled that the buns Subway uses in its sandwiches contain too much sugar to be considered "bread", and are thus subject to Value Added Tax (VAT). The decision lead to headlines and discussion along the lines of "Irish High Court Rules Subway’s Sandwich Bread Is Not Legally Bread" or "Ireland declares […]
More Thoughts on a Better Income Support System for the Next Crisis
This post was written by Mike Veall of the Department of Economics at McMaster University. I appreciated the comments on my earlier post, where I suggested that a small monthly Basic Income system would have the advantage of being able to be scaled-up in a crisis. Incenting participation in the tax/transfer system is responsive to […]
A Small Basic Income as a Solution to the Magic List Problem
This post was written by Mike Veall of the Department of Economics at McMaster University. What if in a future crisis there is again a need to distribute money? As Jennifer Robson put it, “government doesn’t have a magic list with everybody’s name and addresses and bank accounts.” I was reminded of this when thinking […]
Why do I have to collect my pension already?
Ontario's Ford government has a plan to induce professors over 71 to retire. I wrote a column in the Globe and Mail about it. Here's a sneak peak: Nearly one in 10 Ontario university professors is over the age of 65. As of 2016, these professors were earning, on average, $184,947 a year. Moreover, because […]
Carbon taxes and the Marginalists’ difficult idea
This Economists' Statements on Carbon Taxes has been signed by a host of prominent economists: Global climate change is a serious problem calling for immediate national action. Guided by sound economic principles, we are united in the following policy recommendations. I. A carbon tax offers the most cost-effective lever to reduce carbon emissions at the […]
Seeing through Sovereign Wealth Funds?
In the first country, the government imposes a 50% flat tax on each individual's income, and uses the proceeds from that tax to finance an annual $10,000 transfer payment to each individual. The government has zero debt. In an otherwise identical second country, the government has a sovereign wealth fund that owns a 50% non-voting […]
Capital flows vs Kapital flows (very wonky)
This is only partly a response to Paul Krugman's posts. Mostly it's me trying to get my own head clear on something. This is a difficult topic, and this post is not as clear as it should be. So I don't expect many, or any, to fully understand it. I don't properly understand it myself. […]
150 Years of Federal Consumption Taxation
In the run up to Canada Day and the 150th anniversary of Canadian Confederation, here is another in a line of recent snapshots of the federal government – this time its consumption tax revenues. Why consumption taxes? Well, economists like to make the case for more emphasis on consumption taxation relative to income taxes, which […]
Worthwhile Canadian Initiative 
Recent Comments