Government Spending & Taxes

— Jul 14, 2020
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The Revenue Effects of Rescinding Ontario's Tax Rate Hike on High-Income Earners

The Revenue Effects of Rescinding Ontario’s Tax Rate Hike on High-income Earners finds that lowering the province’s top personal income tax rate from the current 20.53 per cent back to 17.41 per cent—where it was prior to a so-called “temporary” rate hike in 2012—would only cost the government $26 million in the first year in foregone tax revenues, thanks to increased economic activity. And lowering the province’s top personal income tax rate would significantly increase Ontario’s attractiveness for investment, entrepreneurs and high-skilled workers.

— Jul 7, 2020
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Canada’s Rising Personal Tax Rates and Falling Tax Competitiveness, 2020

Canada’s Rising Personal Tax Rates and Falling Tax Competitiveness, 2020 finds that workers in Canada—across all income levels—pay higher personal income tax rates than workers in the United States, which can deter professionals, entrepreneurs and businessowners from working and investing in Canada.

— Jun 30, 2020
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Explaining the Growth in Federal Program Spending since 2015

Explaining the Growth in Federal Program Spending since 2015 finds that of the 34 federal government departments, programs and agencies, just five—covering Indigenous affairs, child benefits, seniors’ benefits, the Canada Health Transfer and defence—account for nearly two-thirds of the total increase in spending over the past five years.

— Jun 25, 2020
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Is Fiscal Stimulus an Effective Policy Response to a Recession?

Is Fiscal Stimulus an Effective Policy Response to a Recession? finds that new government spending in response to the recession will likely have little effect on economic growth in Canada—but will produce more government debt.

— Jun 18, 2020
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Equalization and Stabilization Post-Recession: Is Canada Ready?

Equalization and Stabilization post-recession: Is Canada ready? finds that Canada’s equalization program is not designed to handle the dramatic fiscal changes among provinces happening today, finds a new study released today.

— May 26, 2020
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Prime Ministers and Government Spending: Updated 2020 Edition

Prime Ministers and Government Spending, Updated 2020 Edition finds that total per-person spending in 2020 will reach $13,226, including $3,920 per Canadian in COVID-related spending. This represents a 46.6 per cent increase over the previous highest spending level reached in 2019 of $9,041. Crucially, 2020’s total program spending, after adjusting for inflation, is 50.7 per cent higher than per-person spending during the 2009 recession, and 74.5 per cent higher than the highest point of per-person spending during the Second World War.

— May 26, 2020
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Deferring Federal Taxes: Illustrating the Deficit Using the GST

Deferring Federal Taxes: Illustrating the Deficit Using the GST is a new study that uses the goods and services tax to highlight how much tax the federal government was deferring before the recession. To contextualize the size of the pre-recession deficit, the federal GST (currently five per cent) would have to have been nine per cent in order to balance the budget.

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