Stimulus Spending if Necessary, but not Necessarily Stimulus Spending: C.D. Howe Institute Fiscal and Tax Working Group
February 17, 2021 – Any further debt-financed stimulus should be temporary, essential, and targeted to improving the economy’s productive capacity, says a new report from the C.D. Howe Institute.
At their most recent meeting, the Fiscal and Tax Working Group discussed what form new fiscal stimulus should take, but remained unconvinced that a large stimulus package is appropriate at this time. In addition, with federal debt rising rapidly, members argued that any new permanent programs should be tax-financed.
The group of experts from the private sector and academia, co-chaired by John Manley, former federal minister of finance, and Janice MacKinnon, former minister of finance of Saskatchewan, noted that new spending should…
Permanently Higher Federal Spending Threatens GST Hike: C.D. Howe Institute Fiscal & Tax Working Group
November 27, 2020 – A GST hike could be looming on the horizon if Ottawa starts down the road of permanent post-pandemic spending increases, warns a new report from the C.D. Howe Institute.
The Fiscal and Tax Working Group stressed that now is not the time for permanent post-pandemic spending increases or matching tax increases. However, if Canadians want to see a significant increase in the level of ongoing program spending post-pandemic, they must be aware that it will require an increase in taxes across the income spectrum to be fiscally sustainable.
The group of experts from the private sector and academia held their third and fourth meetings on October 6, 2020, and November 11, 2020. The group calculated that…
September 22, 2020 – The COVID-19 crisis has left Ottawa’s finances vulnerable to significant downside risks, meaning little room for major post-crisis spending initiatives without tax increases across the board, says a new report from a C.D. Howe Institute Working Group.
The Institute’s Fiscal and Tax Working Group, co-chaired by John Manley, former federal minister of finance; and Janice MacKinnon, former minister of finance of Saskatchewan, debated the question of whether the federal government’s fiscal trajectory is sustainable, given already announced plans. The discussion took place at the group’s second meeting on Thursday, September 17, 2020.
Many members of the group of experts from the private sector and academia…