Ottawa does not fully understand the consequences of its policy
By Nathalie Elgrably-Levy and Valentin Petkantchin The federal government’s new luxury goods tax, which took effect on September 1, targets luxury cars, private jets and yachts. Without originality, it is part of the traditional logic of taxation which aims to “make the rich pay.” However, we often forget the economic, indirect and longer-term effects, which…
The method StatsCan uses to measure inflation bears no relationship to the reality Canadians face
By Nathalie Elgrably-Lévy and Valentin Petkantchin For several months now, rising prices have dominated public consciousness and raised anxiety in most households. Not for decades has Statistics Canada’s monthly inflation rate indicator been awaited with such rapt attention. This indicator is much like a thermometer monitoring a patient’s fever while under observation. Related Stories Food…
High inflation distorts the application of the capital gains taxes that many of us pay
By Valentin Petkantchin and Olivier Rancourt Montreal Economic Institute The 5.7 per cent year-on-year inflation Canada registered in February has not been seen since the early 1990s. Expansionary monetary policies and the economic sanctions accompanying the Russia-Ukraine war suggest that significant inflation is here for a while. High inflation not only erodes our purchasing power,…
Any gains in competition are more than outweighed by higher spectrum costs
Last December, the federal government launched a consultation for the auction of the 3800 MHz spectrum to help foster the effective deployment of 5G wireless telecommunications. As in previous auctions, the plan is to set aside a significant part of the available spectrum for smaller players, which the main wireless telecom providers are prohibited from…