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  • Report looks at captured nature of BC’s Oil and Gas Commission August 6, 2019
    From an early stage, BC’s Oil and Gas Commission bore the hallmarks of a captured regulator. The very industry that the Commission was formed to regulate had a significant hand in its creation and, too often, the interests of the industry it regulates take precedence over the public interest. This report looks at the evolution […]
    Canadian Centre for Policy Alternatives
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    Canadian Centre for Policy Alternatives
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    Canadian Centre for Policy Alternatives
  • Towards Justice: Tackling Indigenous Child Poverty in Canada July 9, 2019
    CCPA senior economist David Macdonald co-authored a new report, Towards Justice: Tackling Indigenous Child Poverty in Canada­—released by Upstream Institute in partnership with the Assembly of First Nations (AFN) and the Canadian Centre for Policy Alternatives (CCPA)—tracks child poverty rates using Census 2006, the 2011 National Household Survey and Census 2016. The report is available for […]
    Canadian Centre for Policy Alternatives
  • Fossil-Power Top 50 launched July 3, 2019
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    Canadian Centre for Policy Alternatives
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The Progressive Economics Forum

McGuinty’s Business Tax Breaks

An interesting nugget in last week’s Drummond report is Table 11.1, an updated version of Table 2 from “Ontario’s Tax Plan for Jobs and Growth” (2009).

It provides a sectoral breakdown of the McGuinty government’s recent business tax breaks: HST input tax credits, cutting the corporate income tax, and eliminating the corporate capital tax.

The combined annual cost of these tax breaks, when fully implemented, will be higher than originally estimated: $8.7 billion vs. $8.4 billion.

But they will help the manufacturing sector even less than originally estimated: $1 billion vs. $1.2 billion.

The old table suggested that these measures would be a wash for the financial sector. The HST would apply to some previously exempt financial services while finance companies would pay less corporate income and capital tax.

The new table reveals a net gain of $590 million for the financial sector. In particular, the estimated cost of eliminating the corporate capital tax for banks has jumped from $520 million to $740 million.

Restoring a capital tax for banks in Ontario is looking more appealing. The great Wall of Saskatchewan’s Maoist government, for example, continues to levy such a tax.

Enjoy and share:

Comments

Comment from janfromthebruce
Time: February 19, 2012, 4:26 pm

McGuinty should really follow the Sask lead – instead children and workers will take the hit and the financial sector again, gets a break.

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