These are certainly interesting times. For all the faults in last week's BC budget (and there were many), it's worth noting that the conversation about taxes has fundamentally shifted, and in a welcome direction.
Taxes and tax cuts
TORONTO – A new study by the Canadian Centre for Policy Alternatives (CCPA-Ontario) lays out a compromise solution to political gridlock over how to pay for the region’s $2.5 billion in planned public transit expansion.
Toronto’s $2.5 Billion Question: GTA and Hamilton Public Transit Expansion Revenue Options, by economist Hugh Mackenzie, weighs the full range of tax options and finds a sweet spot among provincial and municipal taxes that would foot the bill.
This study lays out a compromise solution to political gridlock over how to pay for the $2.5 billion in planned public transit expansion in the Greater Toronto Area and Hamilton. The paper examines the full range of funding options, including areas for potential contributions from municipal, provincial and federal governments, and also attempts to balance the debate by considering both sides of the ledger — capital and operating expenses.
As happens in elections, the claims and accusations are flying about “who is the better fiscal manager.” The Liberals created a “Spend-O-Meter” purporting to show the NDP’s spendthrift ways. The NDP responded with a “Debt-O-Meter” showing how the Liberals have racked up the provincial debt in their time in office. And while these gimmicks may make for entertaining politics, they oversimplify and often misrepresent the real issues.
Time for a reality check on BC’s deficits, debt and spending.
In our report Progressive Tax Options for BC, we present many possible scenarios for reforming our tax system to increase revenues and make the system more fair. These images illustrate three of these scenarios. Click on the images below for larger versions.
During November 2012, Europe erupted in anti-austerity demonstrations, with protestors clashing violently with police in Spain and Portugal, where general strikes were declared. Millions of EU workers participated in the demonstrations, which have spread to Italy, France, and Belgium.
Greece has also been paralyzed by many intermittent strikes over the past three years, understandably so since it is one of the countries most brutally hammered by the austerity measures imposed by the European Union.
This brief was submitted on April 5, 2013 to the House of Commons Finance Committee for the hearing on Bill M-315. It was prepared by Dr. Christine Saulnier, Director of the Canadian Centre for Policy Alternatives' Nova Scotia Office.
Cette information est disponible en français: Mémoire présenté au Comité permanent des finances de la Chambre des communes sur la motion M-315.
This study finds that ad-hoc tax changes over the last two decades have seriously weakened the redistributive role of Canada’s tax system at a time when market inequalities call for more, not less, redistribution. The authors present a framework for a progressive tax reform strategy and recommend the establishment of a Fair Tax Commission to examine how federal taxes and transfers work together as a system and make recommendations for changes.
Inside this issue: