OECD Study Cites Progressive Economists

The 2008 OECD Economic Review of Canada

http://www.oecd.org/document/3/0,3343,fr_2649_201185_40732867_1_1_1_1,00.html

contains most of the standard neo liberal policy prescriptions we have come to expect – including a proposed shift to a consumption based tax system. However, they do have the good grace to devote two pages (84-85) to “equity considerations” and even concede that ” efficiency considerations come at a cost – large gains to rich savers against losses to the non saving poor.” (15) Unusually, the study cites my own study for the CCPA on the case for tax progresssivity in terms of incoem redistribution and democracy , and extensively draws on Marc Lee’s CCPA study on tax incidence, including a chart drawn from Marc’s work.

The study is also fairly nuanced in its treatment of the implications of Canada’s resource led development. It does not reject “Dutch Disease” out of hand; calls for much reduced carbon intensity in the energy sector; and supports higher resource royalties to capture economic rents, to be invested in a Norway like fund. Taking a leaf from the CCPA Alternative Federal Budget, it even suggests that corporate tax subsidies to the energy sector should be withdrawn, and federal taxes increased if the producing provinces do not step in to collect the resource rents.

My study is at

http://www.policyalternatives.ca/Reports/2007/12/ReportsStudies1779/index.cfm?pa=A2286B2A

and Marc’s is at

http://www.policyalternatives.ca/Reports/2007/11/ReportsStudies1752/index.cfm?pa=A2286B2

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