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…
Not to do so hurts us, our allies and the environment
German Chancellor Olaf Scholz recently completed a trip to Canada to discuss, among other things, Europe importing Canadian natural gas. With the invasion of Ukraine, and the sanctions that followed, Germany, which imported 55 per cent of its natural gas from Russia in 2021, has had to reopen some coal plants and has started looking…
At a time of soaring energy costs, we need this type of legal activism like we need a hole in the head
The anti-energy left has weaponized consumer protection laws in the United States to punish oil and gas companies simply for carrying out their core business. If their lawfare succeeds, there will be serious repercussions for the energy security of North America and the West. According to a recent PBS story, at least 20 cities and…
Tying funding to parental choices generates strong incentives for schools to provide higher-quality customization
When Canadian schools suffer from poor track records and students fall behind, provincial governments always favour the same response: throw more money at the problem. New crises prompt political actors to request further rounds of new investments, reinvestments, refinancing, and improved financing — the slogans change, but the strategy is always to try to secure…
More money won’t solve the systemic, pervasive, and structural issues that plague Canadian health care
Hospital staffing in Ontario is in crisis – as it is in Alberta, British Columbia, and the rest of Canada. Provinces are responding with what they perceive as solutions: Ontario is fast-tracking foreign-trained nurses, and Alberta has made the interprovincial movement of professionals easier. But while these moves will help reduce the red tape surrounding…
The government must follow through on its promise to re-index the tax system to inflation
It’s been three years since the Alberta government implemented a “temporary” pause to the indexation of non-refundable income tax credits and tax bracket thresholds – a policy that has resulted in nearly $647 million in additional taxes being paid by Albertans between 2020 and 2022, according to a recent report by the University of Calgary’s…
The big losers from the tariff are, without a doubt, American consumers
By Olivier Rancourt and Gabriel Giguere The Canadian softwood lumber dispute with the United States, which has been dragging on for some 40 years now, is long overdue for a resolution. Despite setbacks before WTO and NAFTA tribunals, accusations of subsidized production from American decision-makers and producers continue. The accusations have notably led to the…
We need to get serious about freeing up interprovincial trade once and for all
July 1st marked five years since the coming into force of the Canadian Free Trade Agreement (CFTA), whose goal (its website tells us) is to “establish an open, efficient, and stable domestic market” in Canada. Has there been any progress in the half-decade since then in reducing and eliminating barriers to interprovincial free trade? According…
More than 20 per cent of Quebecers currently don’t have a family doctor
By Krystle Wittevrongel and Maria Lily Shaw Quebec’s health-care system is suffering from poor accessibility. More than 20 per cent of Quebecers currently don’t have a family doctor. The overcrowding of hospital emergency wards and the long wait times that result are also notorious. A key to improving the health system’s capacity is to address…
Supply management pushed up to 190,000 Canadians into poverty
By Krystle Wittevrongel and Gabriel Giguère New Zealand had never launched a dispute under a free trade agreement until two weeks ago, on May 12, when it launched a trade dispute against Canada under the Trans-Pacific Partnership (TPP), accusing our government of breaking its promises on dairy imports. This was also the first dispute launched…
A ban will impact some 93,000 jobs in the plastics industry. Most in Ontario
All signs point to the federal government going ahead with a ban on certain single-use plastic products, which would be a mistake. This restrictive measure will likely not have the effects hoped for, and even if it does, you can be sure that the Canadian economy will suffer from those gains. The Canadian plastics industry,…
Subsidize parents instead
In order to increase access to daycare services, the Quebec government recently announced the creation of 14,000 new subsidized daycare spaces over the next two years. But with 51,000 children on the waiting list for subsidized child care, there is not a single space available. And despite the government's good intentions, even this modest increase…
A government-run monopoly could lead to the same problems we see elsewhere in our health care systems
One of the big-ticket items in the most recent federal budget was the new NDP-approved dental care program. Since oral health falls under provincial jurisdiction, the announcement raises several questions as to the application of this program across the country. Expanding access to dental care is a goal we can all get behind, especially when…
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,…