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The Study In Brief As families earn more taxable income, government benefit entitlements are reduced (or “clawed back”) at various phase-out rates, which reduces their overall cost for governments and ensures that they remain targeted to the intended lower-income families. However, benefit reductions act like hidden tax rates: They reduce the effective gain from working to generate additional…

Executive Summary At the five-month mark, the costs of Vladimir Putin’s “special military operation” have soared and spread. The short-term economic costs of the invasion include not only the direct war damage in Ukraine and the immediate consequences of the economic sanctions and counter-sanctions on current economic output in the economies of the combatants, but also the induced negative…

The Study In Brief In Canada, most government cash benefit payments require recipients to file a tax return. Individuals who fail to participate in the tax system, often the most vulnerable in society, may forgo important government benefits (or even entitlements to government services when such services are tied to tax return information). The September 2020 Speech from the Throne committed the…

The Study In Brief Due to rapid digitalization across the economy and an aging population, Canada faces digital and STEM skills shortages. The COVID-19 pandemic has also intensified the need for digital and STEM skills and contributed to the existing shortages. These skills shortages can hurt businesses and affect economic growth. To respond, Canada needs to increase its supply of people with…

The Study in Brief Canada’s senior governments raise and spend huge amounts, and have legally unlimited capacity to borrow when their expenses exceed their revenues. Holding public officials accountable for their spending, taxing and borrowing is a foundational task in a system of representative government. Citizens have the right to know, and elected representatives have duties to them. While…

The Study in Brief The federal government’s massive spending and borrowing during the COVID-19 pandemic has desensitized Canadians to fiscal excess. The government has promised costly new programs without revenue to cover them or measures to boost economic growth and the tax base. This Shadow Federal Budget for 2022 changes course, focusing on growth and ensuring Canadians have the fiscal…