Category Tax policy

The Conservatives propose cutting the GST

As was speculated earlier, the Conservative Party of Canada is proposing to cut the Goods and Services Tax rate from 7% to 5%. So far, the best reaction come from the University of Western Ontario’s Jim Davies, in this CBC story: "Stupid, stupid, stupid, stupid," he said. Aside from minor quibbles about the number of […]

Does government size matter?

In today’s National Post, William Watson says ‘Voters deserve to know where parties stand on size of public sector’. I suppose that’s true, but I really don’t see why it matters much. Here’s a graph of various rich countries’ GDP per capita and social spending: I don’t see any obvious tradeoff there. Nor has the […]

Who pays corporate taxes?

Not corporations. Oh sure, maybe someone employed by a corporation has to write out a cheque to the order of the Receiver-General, and the cheque may even have a corporate logo on it. But corporations do not pay taxes – people do. The question is which people. Or, in the language of public economics, what […]