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  • Boom, Bust and Consolidation November 9, 2018
    The five largest bitumen-extractive corporations in Canada control 79.3 per cent of Canada’s productive capacity of bitumen. The Big Five—Suncor Energy, Canadian Natural Resources Limited (CNRL), Cenovus Energy, Imperial Oil and Husky Energy—collectively control 90 per cent of existing bitumen upgrading capacity and are positioned to dominate Canada’s future oil sands development. In a sense they […]
    Canadian Centre for Policy Alternatives
  • A new Director for CCPA's BC Office: Message from Mary Childs, Board Chair October 24, 2018
    The CCPA-BC Board of Directors is delighted to share the news that Shannon Daub will be the next BC Director of the Canadian Centre for Policy Alternatives. Last spring, Seth Klein announced that, after 22 years, he would be stepping down as founding Director of the CCPA-BC at the end of 2018. The CCPA-BC’s board […]
    Canadian Centre for Policy Alternatives
  • Who Owns Canada’s Fossil-Fuel Sector? October 15, 2018
    The major investors in Canada’s fossil-fuel sector have high stakes in maintaining business as usual rather than addressing the industry’s serious climate issues, says a new Corporate Mapping Project study.  And as alarms ring over our continued dependence on natural gas, coal and oil, these investors have both an interest in the continued growth of […]
    Canadian Centre for Policy Alternatives
  • Pharmacare consensus principles released today September 24, 2018
    A diverse coalition representing health care providers, non-profit organizations, workers, seniors, patients and academics has come together to issue a statement of consensus principles for the establishment of National Pharmacare in Canada. Our coalition believes that National Pharmacare should be a seamless extension of the existing universal health care system in Canada, which covers medically […]
    Canadian Centre for Policy Alternatives
  • Kate McInturff Fellowship in Gender Justice September 19, 2018
    The CCPA is pleased to announce the creation of the Kate McInturff Fellowship in Gender Justice.This Fellowship is created to honour the legacy of senior researcher Kate McInturff who passed away in July 2018. Kate was a feminist trailblazer in public policy and gender-based research and achieved national acclaim for researching, writing, and producing CCPA’s […]
    Canadian Centre for Policy Alternatives
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Archive for 'corporate income tax'

Dead Money

Kudos to Bank of Canada Governor Mark Carney for raising the profile of the over $500 billion Canadian corporations are holding in excess cash surpluses and not investing in the economy, which garnered front page coverage (and kudos to the CAW for inviting him to speak.) It’s not the first time he’s raised this  concern. […]

Agreeing with Hoback’s Headline

I have the following letter in today’s Prince Albert Daily Herald (page 4): Reinvest Resource Wealth in Saskatchewan To the editor: I strongly agree with the title of MP Randy Hoback’s letter: “Siphoning money out of the west is wrong” (June 9). My proposal is to keep more money in Saskatchewan by collecting more provincial […]

Canada’s Self-Imposed Crisis in Post-Secondary Education

On June 7, I gave a keynote address to the Alberta Union of Provincial Employees Education Sector Conference.  My PowerPoint presentation (with full references) can be found at this link. Points I raised in the address include the following: -Canada’s economy has been growing quite steadily over the past three decades, even when one adjusts […]

Mining in the NWT: Who Gets What?

In a recent blog post at Northern Public Affairs, Stephanie Irlbacher-Fox looks at the issue of ‘who gets what?’ when a mine is developed in the Northwest Territories (NWT). Here is an excerpt from the post: – The resource extractor: they pay royalties (the NWT has the lowest royalties in the world), and costs of […]

Quebec Tuition: Between a Rock and Hard Place?

In the context of student protests over Quebec tuition fees, my friend Luan Ngo has just written a very informative blog post on Quebec’s fiscal situation. While I encourage readers to read his full post, I do want to use the present space to make mention of three important points he makes: -On a per […]

Provincial and State Corporate Taxes

The following commentary also appears on The Globe and Mail’s Global Exchange blog: What Obama’s Corporate Tax Proposal Means for Canada Last week, there was much consternation in Canada’s business press that some modest reversals of provincial corporate tax cuts and President Obama’s proposed corporate tax changes could erode our competitiveness. Canadians should maintain a […]

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 […]

Ontario’s Not Digging Deep Enough

PricewaterhouseCoopers’ biennial guide to Canadian mining taxation, Digging Deeper, features a comparative summary of royalties, mining taxes and corporate taxes for a hypothetical gold mine. This approach differs from the table I posted yesterday, which displayed royalty and mining tax revenue as a share of the minerals actually extracted from different provinces and territories in 2010. However, […]

The Race To The Trough: What Did Corporate Tax Cuts Deliver?

The CLC today celebrated Corporate Tax Freedom Day – defined as the day on which corporations have paid their share of all government taxes.  It featured a race of mechanical pigs to a trough full of cash – with the pigs wearing the colours of leading Canadian corporations with large cash reserves. Watch the video. […]

Corporate Taxes and Investment in Ontario

Last week, Ontario’s Ministry of Finance released the Ontario Economic Accounts for the third quarter of 2011. As The Globe reported, business investment was less than impressive: . . . investment in machinery and equipment fell slightly by 0.2 per cent between June and September, 2011, prompting Ontario Finance Minister Dwight Duncan to fire a […]

Tax Shifting

Earlier this week, the Globe and Mail’s Economy Lab published a piece by Stephen Gordon arguing that high income and corporate taxes won’t generate much revenue.  Gordon used used the metaphor of Jean-Baptiste Colbert’s (finance minister to the Louis XIV, the “Sun King”) that the art of taxation was like plucking feathers from a goose: “ obtain the […]

Ontario’s Poverty Reduction Strategy

December marked the three-year anniversary of Ontario’s Poverty Reduction Strategy. While I believe there is much to celebrate, much remains to be done. The Strategy surprised a lot of observers, especially in light of the fact that it was announced in December 2008, just as Ontario was entering a recession.  Its focus was almost exclusively […]

Flaherty’s Christmas List – all Mixed Up

Following recent dismal reports on rising unemployment, stagnant GDP growth, and a deteriorating economic outlook, we can only hope federal Finance minister Jim Flaherty will provide some Christmas cheer with changes “to better promote job creation and economic growth” (as he’s  asked for advice on through his pre-budget consultations). Unfortunately, Santa Flaherty seems to have […]

Time for Corporate Canada to Step Up to the Plate

Mark Carney’s widely publicized speech on the state of the global and domestic economy is worth a careful read. He is bang on in much of his analysis of what ails the advanced economies today – the ongoing deleveraging from a long period of unsustainable public and private debt accumulation relative to GDP in which […]

Corporate Tax Evasion on a Global Scale

This new study from Education International looks interesting. “This EI study follows on from a previous study published in March 2010 by Global Financial Integrity, a research and advocacy organisation promoting transparency in the international financial system, estimating that current total deposits just by non-residents in offshore and secrecy jurisdictions were close to US$10 trillion. […]

Unrest in Bill’s Republic of Doyle

PotashCorp CEO Bill Doyle waded into Saskatchewan’s election campaign on Friday with an op-ed in the province’s two largest newspapers. It was accompanied by a paid advertisement from PotashCorp in Saskatoon’s StarPhoenix. The company got some free advertising in Regina’s Leader-Post through Bruce Johnstone’s column, which repeated Doyle’s op-ed. The Saskatchewan Party is parroting the […]

Sask Party Shills for PotashCorp

Yesterday’s strong earnings report from the Potash Corporation of Saskatchewan confirms what this blog and the NDP have been contending: even modestly increasing Saskatchewan’s extremely low royalties on hugely profitable potash mines could fund substantially better provincial public services. The Saskatchewan Party still refuses to review potash royalties. In a well-timed column, Greg Fingas developed […]

The Globe on Corporate Cash Hoards

Today’s Globe and Mail (page B15) mentions the PEF in a story on the corporate sector’s record-breaking accumulation of cash, a subject about which we have often blogged. Corporate Canada has tripled its cash stash in each of the last two decades. The following Statistics Canada figures are “Canadian currency and deposits” plus “Foreign currency […]

Ontario’s Corporate Tax Debate

Today’s Ottawa Citizen (page A15) features the following op-ed on Ontario corporate taxes. I have added links to references. I recently discussed this issue on TV Ontario: Corporate Taxes are Low Enough By Erin Weir, Ottawa Citizen, September 27, 2011 Corporate taxes are a major dividing line in Ontario’s election campaign. Liberals and Conservatives would […]

Ontario NDP Platform: The Full Monty

Today, the Ontario NDP presented its comprehensive platform costing, including all policies announced during the election campaign. A popular theme among commentators has been that platform costings are unrealistic given the deteriorating economic outlook. As Andrea Horwath noted, her platform includes significant contingency funds. It is also cautiously built on the fiscal framework set out […]

The Ontario NDP Platform

Pollsters tell us that Ontario’s New Democrats may double their seat total in next month’s provincial election. It’s also entirely conceivable that they could be part of a coalition government at Queen’s Park. But what’s actually in the party’s election platform? One central feature of the NDP’s proposals is to implement a tax credit for companies that hire new workers. The tax […]

McGuinty’s Graph Misleads on Corporate Taxes

Further to Jim’s excellent critique of the Ontario Conservative platform’s graphs, I am similarly struck by the Liberal platform’s lone graph. “Cutting Ontario’s Taxes on New Business Investment in Half” (page 25) purports to show that corporate tax cuts are required to get the province’s “Marginal Effective Tax Rate” below the US and OECD averages. […]

Rationalizing Corporate Canada’s Cash Stash

Statistics Canada figures indicate that private non-financial corporations held $471 billion of cash in the first quarter of 2011 ($322 billion of Canadian currency plus $149 billion worth of foreign currency).  Including short-term paper would bring this total to half a trillion dollars, enough to pay off the national debt (i.e. accumulated deficit). Cash hoarding […]

The Underground Economy and Business Tax Evasion

Statscan have produced interesting and important new estimates of the upper bound size of the “underground” or “non observed”  economy, putting it at a seemingly modest 2.2% of GDP in 2008. (Some of this is already included in GDP which is  adjusted to take into account some hidden and unreported economic activity.) The 2.2% estimate […]

Evaluating Tax Cuts: You Read It Here First

Don Drummond has an op-ed in today’s Toronto Star concluding: Federal and provincial governments and the Canadian business sector should [establish] monitoring mechanisms that will permit regular reports to Canadians on whether the Canadian corporate tax revolution is producing benefits for them. As an advocate of corporate tax cuts, he believes that such benefits exist. […]

Mintz is Right on “Small” Business Tax

One of my main undertakings on this blog has been to debunk Jack Mintz’s relentless advocacy of tax cuts for large corporations. However, I also give him credit when he proposes good policy, such as raising potash royalties and the small-business corporate tax rate. This past week, he was out with a paper on the […]

BC to Raise Corporate Taxes

Amazingly, BC’s government has joined its official opposition in proposing to restore the provincial corporate income tax rate from 10% to 12%. The same government that cut from 12% to 10% would now reverse itself as part of a last-ditch effort to save the HST. Revenue from a higher corporate tax rate would help finance […]

The Conference Board on Weak Business Investment

I do not know if the Conference Board intended its latest release on sluggish investment in machinery and equipment to be taken up during the election campaign. However, as Canadian Press reports: The Conference Board report comes at a time when the issue of corporate taxes is a key demarcation point among the parties in […]

The Treasury Transfer Effect – You Read It Here First

Munir Sheikh, former head of Statistics Canada and of tax policy at Finance Canada, has an op-ed in today’s Globe: “A Canada-U.S. tax gap means a Canada-U.S. tax transfer.” As he notes, “any U.S. citizen, resident or company earning income in Canada is subject to U.S. tax, with a credit for Canadian tax paid or […]

Shock and Awful – The Truth Behind CIT Cuts

Cutting corporate income taxes doesn’t create jobs. They may raise wages, but probably not for you and me. And they mean Canadian taxpayers are paying more….to help the Americans pay down their debt Here’s how I know these things to be true: Yesterday SUN TV rolled out its first full day of programming. The prime […]