Despite higher-than-budgeted revenues, there’s been no reduction in the federal deficit in the last four years
By Jason Clemens, Tegan Hill and Milagros Palacios The Fraser Institute The period from the mid-1960s to 1995 was terrible for federal government finances in Canada. The government borrowed every year but one, interest costs consumed ever-greater shares of revenues, the country’s debt ballooned, and we came within a hair of a currency and debt…
Deficit finances put the country in a difficult situation as hints of recession abound. And the Liberal government doesn't seem to care
By Tegan Hill and Milagros Palacios The Fraser Institute The latest economic news foreshadows recession. Canada’s persistent government deficits will only worsen the situation. Recently, the U.S. stock market had its worst day in 2019, plunging 800 points. The bond market is showing weakness with short-term interest rates higher than long-term ones, a situation that…
Sound fiscal policy can come from any party. Canadians need facts, not fiction and rhetoric
By Jake Fuss, Tegan Hill and Jason Clemens The Fraser Institute As the fall federal election approaches, political commentators will bombard Canadians with sometimes misleading rhetoric. But Canadians need facts, not fiction, to make well-informed decisions. Such rhetoric undermines the public’s understanding of good policy and on one key issue, creates confusion around the size…
Future generations will pay higher taxes to finance today’s debt growth. And what has this record debt brought us?
By Jake Fuss and Milagros Palacios The Fraser Institute Throughout its mandate, rather than acting to reduce the federal budget deficit, the Liberal government has made “investments” in the form of more and more spending. Of course, this plan relies on a wave of good fortune – with positive economic growth and higher-than-expected revenues each…
The burden of the debt financing falls on the whole population, and low-income Canadians can least afford to contribute
There’s been much talk about the federal government’s attempts to enact redistributive policies to reduce income inequality in Canada. But the way these measures are funded could increase inequality. One think-tank in Quebec surveyed a panel of 70 policy experts who noted that the latest federal budget would, on the whole, reduce inequality. I contributed…
We need a retooled and simplified tax system that’s suited to a 21st-century economy being reshaped by technology
The latest federal budget, delivered in March, contains a wealth of information on the activities of the government, as well as the money it raises for its endlessly expanding array of expenditure, regulatory and income support programs. This year, the federal government expects to spend $356 billion in total. Roughly $330 billion is allocated to…
With one hand, the government gives. With the other hand, it takes away benefits to taxpayers
By Jason Clemens and Jake Fuss The Fraser Institute Commentators have noted the thrown-together nature of the 2019 federal budget released last week. There seem to be several ill-considered initiatives and some parts of the budget openly contradict other government programs and reforms. One of the more prominent contradictions relates to housing policy. In 2016,…
From supply management to food strategy to rural Internet to food processing to export targets, the government got it all wrong
Most people expected an electoral budget from the federal government this week and that’s exactly what Canadians got. But for the agri-food sector, the budget was underwhelming at best and provided little hope for the near future. Let’s start with supply management. The Liberal government opted to do exactly what the previous Conservative government did…
Will likely result in reduced access to new drugs, and delay research and development
The federal government’s pharmacare advisory council released a report last week outlining the “foundational” elements of a national plan. And Tuesday’s federal budget may include more details. Unfortunately, there’s a lot of misinformation and misunderstanding regarding core aspects of the pharmacare debate. Given that proponents in Canada often cite government-funded pharmacare programs in the United…
Canada is at a huge disadvantage for attracting and retaining those we rely on for innovation, employment growth and prosperity
By Jake Fuss and Milagros Palacios The Fraser Institute Over the last few years, the federal government and many provincial counterparts have weakened incentives for entrepreneurs by raising personal income taxes. This budget season provides an opportunity to reverse this trend and introduce tax policies to attract, encourage and retain entrepreneurs. The process should start…
By Jason Clemens, Tegan Hill and Milagros Palacios The Fraser Institute The period from the mid-1960s to 1995 was terrible for federal government finances in Canada. The government borrowed every year but one, interest costs consumed ever-greater shares of revenues, the country’s debt ballooned, and we came within a hair of a currency and debt…
