Ontario needs to look to Quebec for debt management strategies

Governments need to start planning for the recovery and developing plans to put their finances in order

Ontario needs to look to Quebec for debt management strategiesBy Steve Lafleur and Jake Fuss The Fraser Institute As expected, every government budget in Canada this year has been covered in red ink. The pandemic has squeezed tax revenue while governments have boosted spending to combat the public health crisis and deep recession. But after a year of social distancing and with the rollout…

Now is the time for Nova Scotia to rein in tax-supported spending

Needs to start to unwind emergency spending implemented early in the pandemic

Now is the time for Nova Scotia to rein in tax-supported spendingBy Alex Whalen and Jake Fuss The Fraser Institute Now that the dust has settled on the Nova Scotia Liberal leadership race, new Premier Iain Rankin and provincial Finance Minister Labi Kousoulis will turn their attention to the upcoming 2021-22 provincial budget. Nova Scotia already faces a projected $779-million budget deficit for 2020 and a…

Ontario government must avoid fiscal mistakes of its predecessors

The government must craft a credible short-term plan to eliminate the budget deficit

Ontario government must avoid fiscal mistakes of its predecessorsBy Steve Lafleur and Jake Fuss The Fraser Institute The Ford government released Ontario’s 2020/21 third quarter fiscal update last week. As expected, the numbers were ugly. The Department of Finance now anticipates a $38.5 billion budget deficit for this fiscal year. Moreover, the Financial Accountability Officer projects that while the deficit will decrease substantially…

Ontario must quickly balance budget in wake of pandemic

Deficits might seem like an abstract problem for the future but in Ontario this simply isn’t the case

Ontario must quickly balance budget in wake of pandemicBy Steve Lafleur and Jake Fuss The Fraser Institute New Ontario Finance Minister Peter Bethlenfalvy inherits a difficult job from Rod Phillips. The province’s fiscal challenges long predate the pandemic. The province has mostly run uninterrupted budget deficits since 2008-09. The governments of both Dalton McGuinty and Kathleen Wynne sketched out long paths to budget…

Charitable giving on the wane in Nova Scotia, across the country

Canadian charities are increasingly strapped for resources and face larger financial obstacles

Charitable giving on the wane in Nova Scotia, across the countryBy Alex Whalen and Jake Fuss The Fraser Institute This holiday season, many Nova Scotians will spend their time and money giving back to charitable causes. In fact, every year, tens of thousands of residents in the province donate to charities. However, according to a new study released by the Fraser Institute, both the percentage…

Federal government approach to finances anything but ‘prudent’

Leaving huge bills for future generations to pay

Federal government approach to finances anything but ‘prudent’By Jason Clemens and Jake Fuss The Fraser Institute Since coming to power in 2015, Prime Minister Justin Trudeau and his finance ministers have characterized their management of federal finances as “prudent,” an adjective meaning to act with or show care and thought for the future. Acting prudently would mean being judicious about borrowing and debt.…

Trudeau government dodges democratic accountability

Federal government’s ongoing refusal to deliver a full budget another example of it avoiding accountability

Trudeau government dodges democratic accountabilityBy Jason Clemens and Jake Fuss The Fraser Institute According to Finance Minister Chrystia Freeland, on Monday the government of Prime Minister Justin Trudeau will provide an update on its 2020 spending. But the government hasn’t delivered a full federal budget since March 2019, more than 20 months ago. That demonstrates little regard for democratic…

New Brunswick government finances unsustainable 

New Brunswick government finances unsustainable By Alex Whalen and Jake Fuss The Fraser Institute New Brunswick faces a large budget deficit and rising provincial debt, thanks to the pandemic – and subsequent increased government spending, a shrinking economy and lower projected government revenues. It’s a situation mirrored in provinces across Canada. More important than this year’s deficit, however, are the…

Sooner or later, we will pay for federal spending

Trudeau isn’t saying no new taxes; he’s saying we should continue to spend today and pay for it with taxes tomorrow

Sooner or later, we will pay for federal spendingBy Tegan Hill and Jake Fuss The Fraser Institute Despite promising significant increases to already historically high spending, Prime Minister Justin Trudeau recently pledged there will be no new taxes. This rhetoric is simply false. To pay for today’s spending, the Liberal government must either tax today or defer tax increases to the future by…

Federal tax hikes would do more harm than good

Our high income tax rates discourage productive economic activity and put Canada at a competitive disadvantage

Federal tax hikes would do more harm than goodBy Jake Fuss and Tegan Hill The Fraser Institute On July 8, the government of Prime Minister Justin Trudeau will release a “snapshot” of federal finances, the first such update since the COVID-19 crisis began. The government may also soon look to raise taxes to try to increase government revenue, either to finance new spending…

Alberta should seek more autonomy in health care 

Welfare reform in the 1990s provides a starting point for reforming health care today

Alberta should seek more autonomy in health care By Jake Fuss and Bacchus Barua The Fraser Institute On Wednesday, Alberta’s Fair Deal Panel issued its report detailing 25 policy recommendations to expand the province’s influence within the Canadian federation and enhance provincial autonomy. However, one crucial policy option was not discussed at length – the potential shift of health-care decision-making powers to the…

Nova Scotia government faces debt tidal wave

Rising government debt can dampen economic growth and divert billions of dollars away from important public priorities

Nova Scotia government faces debt tidal waveBy Jake Fuss and Alex Whalen The Fraser Institute Just three months ago, provincial Finance Minister Karen Casey released a budget projecting an operating surplus, which would have been the Nova Scotia’s fifth consecutive balanced budget. However, due to COVID-19, circumstances have changed dramatically and the province now expects to run a large deficit this…

Capital gains tax hike would cripple investment

Increasing the federal tax would be anti-investment, anti-entrepreneurship, anti-innovation and anti-green

Capital gains tax hike would cripple investmentBy Niels Veldhuis and Jake Fuss The Fraser Institute At a time when the country faces momentous economic challenges, it’s hard to think of a more damaging policy than a capital gains tax hike. Yet rumours persist that prior to the COVID-19 crisis and economic downturn, that’s exactly what the federal government planned to do.…

Trudeau tax relief plan will do little for economic growth

Trudeau tax relief plan will do little for economic growthBy Jake Fuss and Finn Poschmann The Fraser Institute According to a Parliamentary Budget Officer (PBO) report released this week, the federal government’s plan to increase the basic personal income tax deduction will cost nearly $7 billion annually when fully implemented. This is not only higher than what the Liberals anticipated during last fall’s election…

Federal finances perilous but Morneau oblivious

Canada’s economy is weakening with storm clouds on the horizon while federal finances are woefully unprepared for a recession

Federal finances perilous but Morneau obliviousBy Jason Clemens, Jake Fuss and Milagros Palacios The Fraser Institute It’s hard to recall a time when Canada’s finances were so perilously close to rapidly deteriorating with seemingly little or no interest in Ottawa. Federal Finance Minister Bill Morneau has been making the rounds since releasing the fall economic update last month, reassuring Canadians…

Federal finances on a razor’s edge

The federal government can’t continue to ignore the warning signs of a slowing economy. It should limit discretionary spending now

Federal finances on a razor’s edgeBy Tegan Hill and Jake Fuss The Fraser Institute The recently-released Economic and Fiscal Update demonstrates the federal government’s proclivity for marked increases in deficit-financed spending despite warning signs of a slowing economy. New borrowing and a larger deficit increase the risk to federal finances should a recession occur. The federal update pegs the deficit…

Federal government tax cuts miss the mark

We need smart tax cuts that improve incentives for workers, entrepreneurs and investors, along with a balanced budget

Federal government tax cuts miss the markBy Jason Clemens, Jake Fuss and Tegan Hill The Fraser Institute Finance Minister Bill Morneau recently confirmed the federal government’s intention to reduce personal income taxes for everyone except “higher-income earners.” With total taxes (federal, provincial and local) consuming 44.7 per cent of the average family’s income in 2019, it’s easy to see why Canadians…

Federal government tax cuts miss the mark

We need smart tax cuts that improve incentives for workers, entrepreneurs and investors, along with a balanced budget

Federal government tax cuts miss the markBy Jason Clemens, Jake Fuss and Tegan Hill The Fraser Institute Finance Minister Bill Morneau recently confirmed the federal government’s intention to reduce personal income taxes for everyone except “higher-income earners.” With total taxes (federal, provincial and local) consuming 44.7 per cent of the average family’s income in 2019, it’s easy to see why Canadians…

Growing debt a clear and present danger to Canadian economy

Canada’s debt has grown faster than the economy. That dangerous pattern casts a shadow over the nation’s long-term financial health

Growing debt a clear and present danger to Canadian economyBy Alex Whalen and Jake Fuss The Fraser Institute Just before the holidays, the federal government released its fall economic update. It revealed that Canada’s federal debt-to-gross-domestic-product ratio increased in 2019, meaning Canada’s debt has grown faster than the economy. This is particularly important because the government chose the debt-to-GDP ratio to guide federal fiscal…

Federal parties’ tax plans range from bad to naive

Higher taxes discourage business investment, business startups, entrepreneurialism and investment in education

Federal parties’ tax plans range from bad to naiveBy Jake Fuss and Tegan Hill The Fraser Institute Before Canadians go to the polls on Oct. 21, they should understand each party’s tax plan, which unfortunately range from bad to worse to downright naive. Let’s start with the NDP and Green Party, which have similar plans. Both propose a new “wealth tax” and would…

Fiscal risks of potential recession await next PM

Any voluntary increase in spending by the federal government would further exacerbate the deficit

Fiscal risks of potential recession await next PMBy Jake Fuss and Milagros Palacios The Fraser Institute Many economists have warned of a U.S. recession in the near future, in part due to the rise of trade protectionism, political turmoil and market volatility. Of course, a U.S. recession will also harm the Canadian economy and create significant problems for federal finances. So when…

Federal government’s appetite for spending is a serious problem

To pay for this rapid rise in public debt, future generations will face higher taxes

Federal government’s appetite for spending is a serious problemBy Jake Fuss and Milagros Palacios The Fraser Institute With seemingly little regard for the consequences, the current federal government has increased spending throughout its mandate with no sign of change any time soon. This spending trend has been a stark departure from promises made during the 2015 election campaign, when the Liberals pledged to…

Tax bill an increasing burden for Canadian families

The cost of living was the number one concern for a third of all Canadians surveyed, according to a recent poll. And rising taxes contribute significantly to those costs

Tax bill an increasing burden for Canadian familiesBy Jake Fuss and Finn Poschmann The Fraser Institute A recent CBC News poll reported that the cost of living is one of the biggest issues worrying Canadians today. And yes, while trend inflation has been very low for a decade, it’s ticking up sharply. So although it’s easy to understand why Canadians are anxious…

Trudeau government has failed to produce promised tax relief

By kicking today's debt down the road, the federal government is passing the burden of repayment to young Canadian families

Trudeau government has failed to produce promised tax reliefBy Jake Fuss and Milagros Palacios The Fraser Institute Providing tax relief for Canadian families has been a stated priority for the government of Prime Minister Justin Trudeau since it assumed office. However, despite any rhetoric to the contrary, the tax burden for the average Canadian family has increased over the last four years. And…

Deeply flawed soda tax rife with unintended consequences

Evidence in other countries shows that consumption taxes don't address the root targets in meaningful ways

Deeply flawed soda tax rife with unintended consequencesBy Ashley Stedman and Jake Fuss The Fraser Institute Policy-makers and pundits have mused recently about a tax on sugar-sweetened beverages to fight obesity and other-health related issues in Canada. It’s a bad idea that should be abandoned. According to Mark Holland, Liberal MP for Ajax, Ont., a ‘soda tax’ will “push consumers away from…

Government spending must be a federal election issue

Sound fiscal policy can come from any party. Canadians need facts, not fiction and rhetoric

Government spending must be a federal election issueBy Jake Fuss, Tegan Hill and Jason Clemens The Fraser Institute As the fall federal election approaches, political commentators will bombard Canadians with sometimes misleading rhetoric. But Canadians need facts, not fiction, to make well-informed decisions. Such rhetoric undermines the public’s understanding of good policy and on one key issue, creates confusion around the size…

Trudeau government’s reckless spending digging deep hole

Future generations will pay higher taxes to finance today’s debt growth. And what has this record debt brought us?

Trudeau government’s reckless spending digging deep holeBy Jake Fuss and Milagros Palacios The Fraser Institute Throughout its mandate, rather than acting to reduce the federal budget deficit, the Liberal government has made “investments” in the form of more and more spending. Of course, this plan relies on a wave of good fortune – with positive economic growth and higher-than-expected revenues each…

Trudeau’s deficit spending cripples the country

Mounting debt pushes up interest costs, consuming resources that could be used to fund important public services or provide tax relief

Trudeau’s deficit spending cripples the countryBy Jake Fuss, Finn Poschmann and Milagros Palacios The Fraser Institute The 2019 federal budget, delivered last month, firmly establishes the fiscal legacy of Justin Trudeau. It's not a positive legacy. No Canadian prime minister has spent more money per person (all figures inflation-adjusted) or accumulated more debt per person outside of a world war…