FISCAL POLICY

CP

Canada Has A Two-Tier Tax System And CRA Is Part Of The Problem

In regards to tax evasion and aggressive tax avoidance, the Canada Revenue Agency (CRA) should be part of the solution. At the moment, it rather seems to be part of the problem. Over the last few years, we have seen that the CRA institutionalized various practices, eroding the trust that Canadians place in it.
CP

93 Per Cent of Canadians Get Nothing from Doubling the TFSA Limits

For those who readily have an extra $4500 available every year, after they've paid their taxes, this increase would be an attractive future tax break. But is a higher limit fair to taxpayers across the board? The answer to that question depends on how many taxpayers at various wealth levels will be able to benefit from the higher contributions.
Getty

Predicting the 2014 Budget (Based on Ottawa's Hints)

To achieve the target of eliminating the deficit by 2015-16, the government announced new commitments that are intended to restrain the growth of spending. This is perhaps partly in recognition of the slow economic growth environment and the fact that robust revenue growth cannot be counted on as the sole basis for returning to balance.

Policy Will Drag on Economic Growth, But Not For Long

The bottom line? Fiscal policy is already a drag on growth, and will be, but perhaps not for as long as many now believe, given the speed with which fiscal dynamics can flip around. Monetary policy is generally expected to tighten, but in a way that does not undermine, but rather lend support to nascent economic growth.
AP

How Canucks Avoided the Fiscal Cliff

In a few days the "fiscal cliff" deadline will arrive and potentially bring massive automatic spending cuts and tax increases to the U.S. Even if Congress and the President agree to avoid the cliff, the next crisis awaits. It has long been said that when the U.S. sneezes, Canada catches a cold. So why have these debt-related ailments in the U.S. not afflicted the Canadian government? The answer is that Canada has been practicing what the U.S. always preached. That is why we Canucks are not jumping off cliffs or smashing into ceilings.
CP

How Dalton McGuinty Botched Fiscal Policy

At a recent political event, outgoing Premier Dalton McGuinty touted his legacy as leader of Ontario. "Our government hasn't been perfect," he said. "But when it comes to the big things that families count on us to get right -- schools, health care, the environment, and the economy -- we've gotten it right every time." As is often the case, there's a gap between rhetoric and reality. That's certainly the case when it comes to McGuinty's claim about the economy.