The OECD Attack on Medicare

The OECD Economic Survey of Canada (unfortunately only a summary is available on line) was released this week, and its call to impose user fees or deductibles on services covered by Medicare (ie physician and hospital care) received quite a lot of media coverage.  I saw OECD economist Peter Jarrett doing at least two TV interviews here in Canada which […]

Read more

TILMA and Medicare

An editorial in today’s Calgary Herald begins with the usual praise for TILMA, but ends by suggesting a new interprovincial deal on healthcare: Yet, for Ottawa to attempt to remedy matters by intruding itself into relations between the provinces would not only provoke reflexive opposition but, even if carried through by force majeure, be unlikely to work. Certainly, the Canada […]

Read more

Finance Minister Bill Morneau on the Dangers of Bank of Canada Funding

A guest blog post from Larry Kazdan, publisher of the “Modern Monetary Theory in Canada” blog: https://mmtincanada.jimdo.com/contact/. Under legislation that came into effect in December 2015, e-petitions that garner at least 500 on-line signatures and that are sponsored by an MP can be tabled in Parliament. The federal government is then required to provide a written response, also posted online, within […]

Read more

“Taking Care of Business,” by Stephen Harper and the Senators!

At the big Unifor Canadian Council meeting in Montreal last weekend there was a surprise appearance by a new musical group, called “Stephen Harper and the Senators”, featuring Stephen Harper on guitar and vocals, Patrick Brazeau on drums, Pamela Wallin on bass, and Mike Duffy on lead guitar and general spiritual advising.  They played a short but lively set, consisting […]

Read more

The Staple Theory @ 50: Mel Watkins

We now present the final instalment in our autumn-long series of special commentaries marking the 50th anniversary of the publication of “A Staple Theory of Economic Development,” the classic article by Mel Watkins published in the Canadian Journal of Economics and Political Science in 1963.  We have invited Mel himself to provide a rejoinder to the series, reflecting on the […]

Read more

Are average Canadians paying too much in taxes?

On April 23, the Fraser Institute released the annual update of their misleading Consumer Tax Index report. The piece is meant to feed the anti-tax sentiment with numbers sprinkled liberally for their shock value instead of providing any meaningful analysis. Here are some of the main flaws with the report’s methodology. If what follows sounds familiar, it’s because I’m drawing […]

Read more

Fiscal Cliff Notes

The US federal budget is back in the spotlight now that the election is over. In one sense, not much has changed in that the Republicans continue to hold the House, the Democrats the Senate and White House. But what we are now witnessing is the culmination of budget deals going back to the first Bush II administration, right up […]

Read more

Freedom from government services day

Well well, another misinformed tax freedom day has come and gone on June 12th.  To mark the occasion this year I wanted to skip over the very serious methodological flaws that others have pointed out, and take a look at several other items that Canadians are “free of” at various points.  By gaining “freedom” from the taxes that Canadians pay we also […]

Read more

Drummond: The Good, The Bad and The Ugly

The Drummond Commission reported today. The Good While the McGuinty government prevented the Commission from considering tax rates, it proposes some sensible measures to raise revenue. Chapter 18, “Revenue Integrity,” recommends combating corporate tax avoidance and cracking down on the underground economy. Businesses sometimes hire workers as “contractors” to avoid paying Ontario’s Employer Health Tax. Drummond advises the province to […]

Read more

Wall Strikes Out on Fiscal Federalism

Saskatchewan’s Brad Wall recently issued a statement exhorting his fellow Premiers to blaze largely unspecified new trails on healthcare, Employment Insurance and Equalization. Unfortunately, he misses the ball on all three issues. Greg Fingas and Verda Petry have already refuted Wall’s call for further healthcare privatization. On Employment Insurance, Wall implies that eastern Canadians are collecting excessive benefits funded by […]

Read more

Is Money Enough? The Meaning of 6% and Flaherty’s Health “Plan”

As Christmas presents go, this one was a shocker:  Over lunch on Monday, cash-strapped Finance Minister Jim Flaherty promised provincial and territorial finance ministers he’d increase federal funding for health care by six per cent each year for the next five years.  No strings attached. No negotiations.  A done deal.  With a catch. The provinces and territories have five years […]

Read more

Brad Wall Light?

I got to know and like Dave McGrane in the Saskatchewan Young New Democrats, but the following assessment misses the mark: McGrane, an assistant professor at St. Thomas More College, said the NDP’s defeat was a product of failing to connect with rural Saskatchewan, poor political marketing and outdated policies. “People had no idea what the NDP were going for,” […]

Read more

S&P Pantsed by US Treasury

I have been reluctant to condemn the credit-rating agencies for sovereign downgrades because it seemed like shooting the messenger. As the bond markets have noticed, a few European countries have serious fiscal problems. Blaming the raters for also noticing did not seem like an effective response. However, I think that Standard and Poor’s decision – alone among the major raters […]

Read more

Navigating challenging economic waters

Down south, the Obama administration is in a dangerous game of chicken with Republican congressional leaders, who are cynically holding the US economy hostage in order to impose a radical agenda of spending cuts. Obama has seemingly bought into the rhetoric of cutting debt, rather than focusing on the real US problem of unemployment. Yet, even his foolish offer to […]

Read more

The NDP on Business Taxes and Jobs

The media coverage of  Layton’s announcement yesterday was disappointingly thin, and the details (including on the NDP web site) are pretty hard to find. The NDP would go one better than the Liberals in raising the Corporate Income Tax rate from 16.5% today (and 15% next year) to the 2008 rate of 19.5%. The Liberals would go back to  18%. […]

Read more

Taxers of the World Unite

You know that you are doing something right when the Canadian Taxpayers Federation (CTF) starts making up new pejorative terms. Last Friday’s Toronto Sun included the following op-ed on the Taxers (with a capital “T”): Calls for new and higher taxes are coming from the usual tax-hike proponents (AKA Taxers); public sector unions, lobby groups like the Canadian Centre for […]

Read more

Consumer Tax Index

When confronted with a document as muddled as yesterday’s Canadian Consumer Tax Index, a major challenge is figuring out where to begin in critiquing it. Indeed, this one Fraser Institute report supplied enough fodder for three separate posts today by Iglika (and she is promising a fourth!) I think that the report’s worst flaws are overstating average taxes and ignoring […]

Read more

Have Taxes Changed All That Much Over the Past Half Century?

A recently released Fraser Institute report claims that the tax bill of the average Canadian family grew by a whopping 1,624% since 1961. This is an enormous number, designed to appeal to our sensationalism-hungry media, but it does not provide a meaningful comparison of today’s average tax bill and the tax bill our parents’ and grandparents’ generations faced fifty years […]

Read more

From a Woman’s Perspective: Canada’s Place in the World

Today’s day-after-International-Women’s-Day story in the New York Times by Nancy Folbre links to four indices of gender equity. How is Canada doing? Canada ranks 4th in the Human Development Index (we were number one for eight years) as well as the UNDP Gender Development Index, behind Norway, Australia and Iceland. Norway has been ranked the best country for human development […]

Read more

Tales from the Mouth of the Fraser: Unfounded Liabilities

The Fraser Institute says the debt monster is gonna getcha: The study, Canadian Government Debt 2008, shows that federal, provincial, and local governments have accumulated $791.2 billion in direct debt and more than $2.4 trillion in total government liabilities. Total liabilities include direct debt and programs that the government has committed to provide such as Old Age Security and Medicare […]

Read more

No need for alarm over health care spending in BC

Jeffrey Simpson is right to lament that “there is no realistic, sensible debate” about health care in BC. Unfortunately, his May 13th Globe & Mail column “Even the redoubtable Premier Campbell struggles with health care” does not help. Simpson’s main point in the column is that health care spending in BC is rising out of control, defeating Campbell’s efforts to […]

Read more

A Blast from the Past: Lynn Williams in the Huffington Post

Lynn Williams, former International President of the United Steelworkers, has posted an excellent speech on a major American blog. Although the title refers to rebuilding the labour movement, the text touches upon many of the broader policy issues discussed on our blog: how to design a stimulus package, rising inequality, public healthcare, the economics of minimum wages, international trade agreements, […]

Read more

Worst Diane Francis Column Ever

Diane Francis has written many unsubstantiated columns. On July 6, for example, she claimed that “Canada has the highest corporate taxes in the world.” However, based on the following quotes, Tuesday’s column probably takes the cake. If last week’s election upset is any indication, Saskatchewan is going to be on a roll for a few years. I have no idea […]

Read more

How Much Will the Tax Cuts Cost?

As Andrew, Bruce, Marc, Ish and others have correctly argued, last week’s Economic Statement wastes money that could otherwise have financed vital public programs. Two tables in the Statement are critical to this case. Table 2.2 (page 45) estimates the costs of newly-announced tax cuts. Table 3.1 (page 73) estimates the costs of all tax cuts adopted since the Conservatives came to power. The […]

Read more

Health care sustainability

I released a study today, How Sustainable is Medicare? A Closer Look at Aging, Technology and Other Cost Drivers in Canada’s Health Care System, available for download here. This essentially a national version of one I did last fall for BC only. With national data I was able to make projections 50 years into the future. The CP wire story […]

Read more

Farewell David Dodge

I’ll be sorry to see Governor David Dodge leave the Bank of Canada. To be sure, I’ll take a good deal of critical distance from his and the Bank’s view that we are operating “above capacity” when real wages for at least the bottom half of the work force are flat, and I think monetary policy as a whole should […]

Read more

Ezra Klein on the health of nations

In the American Prospect, Ezra Klein compares five countries’ health care systems (hat tip to Mark Thoma). in spite of his general defence of Canada, there are a few areas where I think he gets it wrong and I have added in some comments in those places. The Health of Nations Here’s how Canada, France, Britain, Germany, and our own […]

Read more
1 2