Skip to main content

“I am a Canadian, free to speak without fear, free to worship in my own way, free to stand for what I think right, free to oppose what I believe wrong, or free to choose those who shall govern my country. This heritage of freedom I pledge to uphold for myself and all mankind.” ~~ John G. Diefenbaker

FRASER INSTITUTE -- Tax reform key to economic growth and four-day work week


 

If governments across Canada want to help increase productivity — and the possibility of a four-day work week — they should lower tax rates on business, capital gains and personal income, finds a new essay released today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

“Some types of taxes do more damage to the economy than others, so policy makers should move away from the most damaging taxes to help improve economic and productivity growth and increase the possibility of a four-day work week in Canada,” said Jake Fuss, senior economist at the Fraser Institute and co-author of Increasing Productivity Through Tax Reform.

For example, personal income taxes reduce after-tax wages (i.e. take-home pay), thereby affecting how much people are willing to work, save and invest. Canada’s relatively high personal income tax rates means we’re at a competitive disadvantage in encouraging, attracting and retaining high-skilled workers and entrepreneurs. Higher taxes on businesses increase the cost of labour, equipment and materials, affecting decisions around risk, investment and expansion.

Among 36 OECD countries in 2019, Canada had the 10th highest business tax rate (26.2 per cent), higher than countries such as the United States, Sweden and Denmark.

Finally, taxes on capital gains create incentives that can hurt economic growth.

For example, people may hold on to existing investments to avoid paying taxes rather than selling the investments and reinvesting in more productive endeavours.

“By lowering tax rates on personal and business income, governments would encourage and incentivize the very things we need more of—investment and entrepreneurship, which lay the foundations for a four-day work week through improved productivity,” said Alex Whalen, Fraser Institute policy analyst and study co-author.

 

This essay is part of a series published by the Fraser Institute, which focuses on policy reforms that can improve productivity growth and lay the foundation for a four-day work week.

Comments

Post a Comment

Popular posts from this blog

Kamloops woman’s cancer test cancelled due to Interior Health mandates for OB/GYNs (iNFO News)

A Kamloops woman’s cancer screening appointment was considered urgent by her doctors and scheduled within weeks, but it was postponed indefinitely when Interior Health ordered her gynecologist take that day’s on-call shift. Troylana Manson now waits with the mystery of whether she might have cancer amid a staffing crisis for women’s health care specialists in Kamloops. “I was happy to have that appointment in December so we could rule this out, but now it’s thrown in the air again. People in Kamloops, certainly people in positions of power, need to realize what Interior Health is doing”  ... CLICK HERE for the full story
Post a Comment
Read more

One arrested at OneBC event at UVic that draws protesters (Times Colonist)

A would-be speaker was arrested under the Trespass Act after she arrived at the University of Victoria on Tuesday for an event intended to shed light on what the OneBC political party refers to as the “reconciliation industry.”  An officer at the scene initially said two people were arrested, after protesters scuffled with those trying to hold the unsanctioned event. Saanich police issued a statement later Tuesday saying only one person was arrested.  Police did not name the person who was arrested, but OneBC leader Dallas Brodie said it was Frances Widdowson, who was later released ... CLICK HERE for the full story 
Post a Comment
Read more

Eby misled British Columbians about Cowichan appeal; court records show no stay was ever filed; Conservative leader John Rustad

Conservative Opposition Leader John Rustad says Premier David Eby has been caught misleading the public after court records confirmed the government never filed the stay of the Cowichan ruling the NDP repeatedly promised. “For four months, the Premier said the stay was being sought, the Attorney General claimed the application was underway, and the government told British Columbians that action was coming. The court record shows they did nothing,” said Rustad. “Not one stay, not one application, not one motion. They made promises to homeowners while the registry sat empty.” Premier Eby first promised on August 11, 2025, that a stay would be filed, then again in October, and twice in Question Period when pressured by the opposition. A review of court documents on Friday revealed that no stay has been filed. Rustad said the stay was the single legal measure that could pause the ruling and protect homeowners in Richmond and across the province while appeals move forward. By...
Post a Comment
Read more

Labels

Show more