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

BC cannot regulate, redesign, and reinterpret its way to a stable forestry sector. Communities need clear rules, predictable timelines, and accountability for results.

Photo credit:  Atli Resources LP   BC’s Forestry Crisis Continues with Closure of Beaver Cove Chip Facility   As industry leaders, Indigenous partners, and contractors gather this week at the BC Natural Resources Forum in Prince George, the gap between government rhetoric and reality could not be clearer. Just hours after the Eby government once again touted reconciliation, certainty, and economic opportunity under DRIPA, Atli Chip Ltd, a company wholly owned by the ’Na̱mg̱is First Nation, announced it is managing the orderly closure of its Beaver Cove chip facility. The closure comes despite public tax dollars, repeated government announcements, and assurances that new policy frameworks would stabilize forestry employment and create long-term opportunity in rural and coastal British Columbia. “British Columbians are being told one story, while communities are living another,” said Ward Stamer, Critic for Forests. “This closure makes it clear that announcement...
Post a Comment
Read more

Stamer: Hope for Forestry Completely Shattered After Another Provincial Review Driven by DRIPA

IMAGE CREDIT:  Provincial Forestry Advisory Council Conservative Critic for Forests Ward Stamer says the final report from the Provincial Forestry Advisory Council confirms the worst fears of forestry workers and communities; instead of addressing the real issues driving mill closures and job losses, the NDP has produced a report that ignores industry realities and doubles down on governance restructuring. Despite years of warnings from forestry workers, contractors, and industry organizations about permitting delays, regulatory costs, fibre access, and the failure of BC Timber Sales, the PFAC report offers no urgency, no timelines, and no concrete action to stop the ongoing decline of the sector. “ This report completely shatters any remaining hope that the government is serious about saving forestry ,” said Stamer.  “ We didn’t need another study to tell us what industry has been saying for years. While mills close and workers lose their livelihoods, the NDP is focused on re...
Post a Comment
Read more

FORSETH – My question is, ‘How do we decide who is blue enough to be called a Conservative?’

How do we decide who’s blue enough to be a Conservative? AS OF TODAY (Friday January 30 th ), there are now eight individuals who have put their names forward to lead the Conservative Party of British Columbia. Having been involved with BC’s Conservatives since 2010, and having seen MANY ups and downs, having 8 people say “I want to lead the party” is to me, an incredible turn-around from the past. Sadly, however, it seems that our party cannot seem to shake what I, and others, call a purity test of ‘what is a Conservative’. And that seems to have already come to the forefront of the campaign by a couple of candidates. Let me just say as a Conservative Party of BC member, and as someone active in the party, that frustrates me to no end. Conservatives, more than any other political philosophy or belief, at least to me, seems to have the widest and broadest spectrum of ideals.   For the most part, they are anchored by these central thoughts --- smaller and less intru...
1 comment
Read more

Labels

Show more