Category Tax policy
The economics of tax incidence: paying the tax is not the same as bearing the burden
One of the more important things that distinguishes economists from non-economists is a familiarity with the notion of tax incidence. The statutory incidence of a tax (who sends the cheque to the Receiver-General?) is usually very different from its economic incidence (who is out of pocket?). The basic intuition is simple enough. We all understand […]
HST and jobs: more studies in applied orthogonality
Some economic policy debates are about jobs. Most aren't about jobs, or shouldn't be. But far too many of them end up being about jobs, even though the policies have nothing to do with jobs. Frances once explained the advantages of the HST to me. (Note for non-Canadians: the Harmonised Sales Tax replaces a provincial […]
Should recent immigrants be eligible for Old Age Security?
Most Canadian seniors are guaranteed an income above the poverty line by Old Age Security, Guaranteed Income Supplement and the Canada Pension Plan. Seniors are less likely to be poor than children or adults under 65 – with one exception. Mike Veall has found that 71 percent of recent immigrants aged 66 and older have […]
BC bleg: Are its politicians crazy, or just stupid?
BC is several thousand kilometers and three time zones away, so much of what happens there passes below my personal radar. But the HST file is something I've tried to pay attention to, and the news from BC just seems to go from bad to worse. I have a couple of questions, and I'm hoping […]
Are we hard-wired for capitalism?
When I get back from the Canadian Economics Association meetings this evening, my dog will throw himself on me in a paroxysm of joy. But if, two minutes later, I were to try to take a bone away from him, he would bare his teeth and growl. Animals – including humans – are instinctively possessive. […]
Trends in OECD corporate income tax rates
From the OECD's Tax Database (Table II.1): The last few decades has seen extensive work documenting the deleterious effects of corporate income taxes – especially for small open economies. These lessons seem to have been taken to heart by policy-makers.
Corporate income taxes: a reading list
Like many Canadians, I am dreading the prospect of a federal election. We all have our own reasons for doing so, and here's mine. Now that the Liberals have announced that they – along with the NDP – will oppose the reduction in the corporate income tax rate that is planned for next year's budget, […]
Why is the personal income tax system so complicated?
It wasn't always this way. Recent budgets have seen a flowering of special credits – the employment amount, public transit amount, children's fitness amount, home buyer's amount, the textbook amount, just to name a few. More and more, support for Canadians in need comes through the income tax system. So now your tax return contains […]
A public finance vignette
Here's a short story, simple but true, that illustrates a lot of public finance: from public choice to Ricardian Equivalence. I live on a cul de sac. Many of my neighbours wanted our gravel road paved, and were prepared to pay for it. The municipality held a neighbourhood referendum, and the motion passed by more […]
Comparing the HST with retail sales taxes
These notes on the HST and how it compares to the old retail sales tax were prepared by Frances Woolley. There are two fundamental differences between the new Harmonized Sales Tax (HST) and the old provincial sales tax or Retail Sales Tax (RST or PST). The first difference between the taxes is the tax base. […]
Worthwhile Canadian Initiative 
Recent Comments