Since 1990, Ontario has accumulated nearly $265 billion in net public debt. Put another way, nearly 90 per cent of Ontario’s net public debt has been accumulated over the last 25 years.
Government Spending & Taxes
The Ontario government's strategy to eliminate the projected $8.5 billion deficit has largely hinged on hoping revenues will grow robustly and eventually catch up to spending increases. This is a risky strategy.
Some activists claim the existence of an “inequality crisis” and propose an array of populist policy responses. On these issues, Mr. Morneau would be well-served by considering recent think-tank research.
Yesterday, the Alberta government unveiled its new climate change strategy, calling for a carbon tax, which represents a new tax burden on Alberta businesses and families.
The appointment of Bill Morneau as minister of finance is particularly interesting because of his involvement in the world of public policy think-tanks. In recent years, the Fraser Institute and the C.D. Howe Institute (where Mr. Morneau recently served as Chair) have both produced important research that provides insights that can help guide the policy decisions of the new finance minister on a number of different files. This series of blog posts will highlight a number of key policy areas where Mr. Morneau’s think-tank experience can be especially useful.
Today, newly minted federal Finance Minister Bill Morneau released his first Update of Economic and Fiscal Projections. Unfortunately, the outlook isn’t positive.
Prime Minister Trudeau's letter to Finance Minister Bill Morneau lists 27 priorities—we offer a quick reaction to 13 of these priorities.
Recent deficit reduction track record is quite weak, which is why Ontario is still running an $8.5 billion deficit in 2015/16, several years after the recent recession.
Raising tax rates increases revenues at lower tax rates—but as rates rise, a work disincentive effect kicks in, as well as a stronger tax-planning incentive that erodes revenues.
William Watson: Crumbling infrastructure notwithstanding, we shouldn’t submit to more public spending
It’s true that in Montreal, our roads are chronically potholed and some of our highways, overpasses and bridges are literally crumbling. But does that come from any general reluctance to invest in public goods?
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