It is notable that the Globe has run a major story today – on p.1, above the fold in the print edition – drawing attention to the fact that recent corporate tax rate cuts have not produced an increase in real business investment. Reference is made to the views of labour economists. The Globe story will not be “news” to […]
Read moreCanada’s economic context at the time of Election 2011 is one of “precarious recovery”, and overall demand conditions are weakened by a few major factors. Unemployment is still just under 8%, which is good compared to the double-digit unemployment of the early 1990s, but not great compared to the expansions of the late 1990s and 2000s. Too much of the […]
Read moreI do not think anyone can disagree with the conclusion of Murray Fulton and Ken Rasmussen that Saskatchewan should “proceed with a thoughtful and deliberate process that ensures that the province is the long-term beneficiary of this asset.†The provincial opposition is advocating a royalty review process to achieve that goal. The government and potash companies claim that the appropriate […]
Read moreI did my taxes yesterday and once again was surprised to see how low my family’s income taxes have gone. In 2010, my wife and I paid a combined 13.7% of our income in federal and provincial income tax. Canadian modesty does not permit me to disclose the exact amount of income, but it was under six figures, and about […]
Read moreI recently posted on the CCPA’s “Making it Count†blog covering election 2011 issues. In that post, I calculated the distributional impacts of the “Family Tax Cut†proposed by the Conservatives that would allow couples with children under 18yrs old to split up to $50,000 of their income. The “Making it Count†post is meant for popular consumption, but I […]
Read moreFrom the PEF’s mailbag, here is a guest post by Nick Scott, a recent college graduate and aspiring writer with a passion for environmental conservation. He currently resides in the southeastern United States. The United States and the Business of Pollution In light of the recent environmental tragedy in Japan, there has been a growing awareness of the potential threat […]
Read moreThere is an interesting new piece on incomes of future retirees, “The Canadian National Retirement Index”, by MacDonald, Moore, Chen and Brown in Canadian Public Policy. It uses the Statistics Canada Life Paths Model to forecast the incomes of future retirees. This greatly amplifies, to my mind, the case for expansion of the Canada Pension Plan and public pensions generally […]
Read moreI have just finished reading a 2009 book entitled Academic Transformation: The Forces Reshaping Higher Education in Ontario. The book, written by Ian Clark, Greg Moran, Michael Skolnik and David Trick, has received a fair bit of attention among post-secondary (PSE) wonks.  While I find it informative, I am uncomfortable with the book’s central feature: a proposal to reform Ontario’s PSE sector with the […]
Read moreHere is the CLC brief to the Industry Committee hearings which we did not get to present due to the election. Hopefully the issue will still get a good hearing over the next few weeks, especially since the NDP have staked out some good ground on the issue. I note there have been 48 posts on foreign investment/ownership since the […]
Read moreThe 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 moreI was one of the three judges for the inaugural Canadian incarnation of the Hillman Prize for Investigative Journalism. Sidney Hillman was a founding organizer of the garment union in the U.S., and left a legacy that has been used to fund an annual U.S. award for reporters who take the time & risk to dig up the real dirt […]
Read moreThe Conservatives are stressing their supposed credentials as “economic managers” in their strategy to win a majority — combined with fear-mongering about a future coalition (although that latter part of the strategy may be backfiring on them). I’ve argued before that claims about Canada’s superior performance are not factually correct, especially when we correct for faster population growth here (which […]
Read morePrime Minister Harper today re-announced the 2011 Budget proposal to introduce a one year program to reduce EI employer premiums by up to $1,000 for small businesses which expand employment in 2011 compared to 2010. I would characterise this as more of a token gift to the Canadian Federation of Independent Business than a serious job creation measure. The credit […]
Read moreSince the Conservatives are promising income splitting, it may be worth revisiting some classic Relentlessly Progressive Economics posts on the subject. Some of the links we posted four years ago no longer work, so my Ottawa Citizen op-ed is reproduced below. While the population totals and tax thresholds have changed slightly, the analysis stands. The Conservatives have somewhat limited the […]
Read more(I have also posted this to the new CCPA election blog which plans to run fairly short non technical pieces over the next month.) Â Harper’s key framing argument is that a stable majority is needed to maintain an economic recovery which would be derailed by a coalition. I find this more than a little ironic. Canada has indeed had […]
Read moreI missed last week’s federal budget, but was pleased to see the quantity and quality of same-day analysis posted on this blog. Jim wrote an excellent piece, “Corporate Taxation and Investment in the 2011 Federal Budget,†about the corporate tax debate in post-budget media panels. But what struck me was David’s point about how the budget itself did not address […]
Read moreI just want to draw attention to the rules and April 30th deadline for this year’s PEF Student Essay Contest. Please put up this poster at your local university campus.
Read moreJeremy Leonard, research director of IRPP, suggests in today’s Globe that CPP retirement benefits be cut to balance the federal books, or at least he is cited to that effect by Barrie McKenna. “That doesn’t mean there aren’t major savings to be wrung out of spending. Mr. Leonard, for example, suggested that reforms to the Canada Pension Plan could achieve […]
Read moreAmidst all the frenetic disarray of budget day, I had an interesting and informative exchange on CBC’s Power & Politics with John Manley, former Liberal Finance and Industry Minister, and now chief lobbyist for Canada’s corporate elite (as President and Chief Executive of the Canadian Council of Chief Executives).
Read moreHere is the CLC Budget Analysis At this point the economics of the budget are so overwhelmed by the uncertain political calculations that one hesitates to add to the discussion. There are a few modest half good things here in response to demands from labour and the left. $300 Million earmarked for the poorest of poor seniors is not to […]
Read moreThe 2011 federal budget was clearly designed to fail and provoke an election. It only went part way to meet some of the opposition parties’ priorities while also showering the country with dozens of different politically opportunistic relatively minor spending measures, extensions of expiring programs and boutique tax cuts.  Quite appropriately, it became D.O.A.–and now we’ll soon be into an election. What’s concerning […]
Read moreBack in 1995 Finance Minister Paul Martin introduced a budget that reshaped fiscal federalism and retrenched the scope of the welfare state in Canada. It envisioned a dramatically smaller role for the federal government, a role that was permanently in question through the process of ongoing program review. It was Paul Martin’s permanent revolution, for the federal public service. Today’s […]
Read moreIf you take a look at this year’s budget and you have an issue that you’re interested in, chances are you’ll find it on the list. There are in fact almost twice as many items on this year’s budget list as the large 2009 stimulus budget. There are some items on seniors, some items on EI, some items for kids, […]
Read moreAll eyes may be on Ottawa when the federal budget is released this afternoon, but it isn’t the only government tabling its budget today.   New Brunswick’s new Conservative government will also be tabling its first budget today–and it’s expected to include austerity spending cuts at the same time that they proceed with further corporate tax cuts.    The following is an […]
Read moreWith the Alternative Federal Budget (AFB) officially released, you’d think the budget gnomes at the CCPA would have some much deserved time off. Â Unfortunately with the snow still falling in Ottawa, we figured we’d put them back to work. Every year, the AFB puts together ideas from all of the partners involved. Â Once everything is said and done, those ideas […]
Read moreMy recent post on public sector pay elicited a lot of comments, including a fair few based on the right-wing premise that the public sector is an unproductive burden on the private sector. I have always found this ascription of productivity to the public and private sectors to be deeply misleading in that it conceals the profound interdependence and interpenetration […]
Read moreAdvocates of low potash royalties have floated some pretty bizarre arguments. Last week, the Saskatchewan Party put out a news release emphasizing that local farmers use some 0.6% of provincial potash output, as though this tiny sliver of domestic consumption somehow complicates the province’s interest in maximizing revenue as a potash producer. Equally strange are claims that Alberta’s oil and […]
Read moreKeith Dunne and I have an opinion piece out on what we consider to be one of the best-kept secrets in Canadian social policy: Danny Williams’ post-secondary education (PSE) legacy. Among other things, the piece points out that: -Since 2003, the Newfoundland and Labrador government has increased funding for PSE by 82 percent. -Average tuition fees for domestic students in […]
Read more          I recently debated Ottawa Citizen columnist and MacDonald-Laurier Institute honcho John Robson on BNN regarding the role of unions in society. It was a rather nasty exchange, as these things go: he’s a smart, aggressive, neo-con who was on the offensive from the opening introductions:          A few days later, he lampooned me in a column, titled “An Economic […]
Read moreIglika reported to me that Kevin Milligan made the argument in favour of the HST that its presence was economically beneficial because it induces additional investment on the margin, as projects that previously did not meet a certain profit threshold would become real investments. This is a net gain (forget about who benefits from those investments) even if the vast […]
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