US Tax Changes should Trigger Bold Reform in Canada

Thursday, March 14th, 2019

The authors propose a cash-flow tax, or what economists call a tax on economic “rents” which would involve the immediate write-off of all capital expenditures coupled with the elimination of the debt-interest deduction. The idea is to replace the corporate income tax with a tax that applies only to above-normal return on investment and is, therefore, neutral with respect to business investment and financing decisions.

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HST: That didn’t hurt much

Sunday, March 20th, 2011

Mar 20 2011
A cut to the HST would take Ontario in the wrong direction. For one thing, it would be expensive. Reducing the rate even one point would cost over $2.5 billion in revenues, at a time when Ontario is facing ongoing annual deficits of more than $15 billion. For another thing, cutting the HST is a solution in search of a problem. The HST reform was a change in the way we tax, but it wasn’t a tax grab and it did not change people’s overall tax bills very much… having a broad tax base is fairer to everyone and it helps keep the tax rate low.

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