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    Jack Mintz

    ... Taxes on capital income in Canada: Analysis and policy. Post a Comment. CONTRIBUTORS:Author: Boadway, Robin W. (b. 1943, d. ----. Author: Bruce, Neil. Author: Mintz, Jack M. PUBLISHER: Canadian Tax Foundation (Toronto, Ont.). SERIES... more
    ... Taxes on capital income in Canada: Analysis and policy. Post a Comment. CONTRIBUTORS:Author: Boadway, Robin W. (b. 1943, d. ----. Author: Bruce, Neil. Author: Mintz, Jack M. PUBLISHER: Canadian Tax Foundation (Toronto, Ont.). SERIES TITLE: YEAR: 1987. ...
    Now is not the time to consider capping interest deductions for business taxes, says a new report from the C.D. Howe Institute. In “Adjusting to Reality: As Proposed, Restricting Corporate Interest Deductibility is Ill-Advised,” authors... more
    Now is not the time to consider capping interest deductions for business taxes, says a new report from the C.D. Howe Institute. In “Adjusting to Reality: As Proposed, Restricting Corporate Interest Deductibility is Ill-Advised,” authors Jack Mintz and V. Balaji Venkatachalam note that the proposal, the implementation of which is currently under serious consideration in Ottawa, would have added $1.45B to Canada’s 2019 corporate tax bill.
    This paper analyzes Alberta’s fiscal problem in terms of the size of the current deficits and the growth trajectory of the debt. We endeavor to put the province’s fiscal problem in terms to which people can relate. In addition to... more
    This paper analyzes Alberta’s fiscal problem in terms of the size of the current deficits and the growth trajectory of the debt. We endeavor to put the province’s fiscal problem in terms to which people can relate. In addition to analyzing the scale of the problem, the paper will consider some of the policy choices that the Alberta government could make that would begin to align revenue and spending. Although the deficit cannot be eliminated in one year, more can be done now to reduce the debt build-up, as it will take time to eventually achieve a balanced budget. As well as recommending short and medium-term measures to better align spending and revenue, we present a longer term plan to balance the budget over a number years with specific deficit targets for each year.
    Following the 2017 overhaul of the U.S. corporate and personal tax system, 2018 has seen much discussion regarding Canada’s diminished tax advantage and its attractiveness as an investment destination in comparison to the U.S. In the... more
    Following the 2017 overhaul of the U.S. corporate and personal tax system, 2018 has seen much discussion regarding Canada’s diminished tax advantage and its attractiveness as an investment destination in comparison to the U.S. In the November 21st 2018 Economic Update, the federal government’s response was finally unveiled. The central policy included a generous temporary accelerated capital cost allowance. This strategy largely follows a plan of action championed by the Canadian business community and emulates features of the U.S. corporate tax reform. However, as we point out below, tinkering with depreciation schedules distorts further the corporate tax system and fails to deal with other competitive issues that can only be addressed by changes to the statutory corporate income tax rates.
    A discussion of the policy initiatives that might be pursued by the Government of Alberta to facilitate the growth of Alberta's Financial Sector.
    REPUBLICANS REVEAL PROPOSED TAX OVERHAUL The White House and Congressional Republicans have revealed their much-anticipated proposal for reform of the U.S. personal and corporate tax systems. The proposal titled, “UNIFIED FRAMEWORK FOR... more
    REPUBLICANS REVEAL PROPOSED TAX OVERHAUL The White House and Congressional Republicans have revealed their much-anticipated proposal for reform of the U.S. personal and corporate tax systems. The proposal titled, “UNIFIED FRAMEWORK FOR FIXING OUR BROKEN TAX CODE” outlines a number of central policy changes, which will significantly alter the U.S. corporate tax system. The proposal includes a top federal marginal rate reduction for the sole proprietorships, partnerships and S corporation—small business equivalents— from 39.6% to 25% (state income tax rates would no longer be deductible). Large corporations would also see a meaningful federal rate reduction given the proposed drop in the federal corporate income tax rate from 35% to 20%. Additionally, the proposal includes a generous temporary measure intended to stimulate investment, full capital expensing for machinery with a partial limitation of interest deductions.
    It’s time to consider a more economically efficient model for financing roads, bridges and other public infrastructure. It’s true that Canada has become one of the biggest spenders on infrastructure among OECD countries, at four per cent... more
    It’s time to consider a more economically efficient model for financing roads, bridges and other public infrastructure. It’s true that Canada has become one of the biggest spenders on infrastructure among OECD countries, at four per cent of GDP, but using GDP to measure the share the government should spend on infrastructure is an anachronistic and arbitrary measure. We all know it is important that Canada keep pace with maintaining and building the necessary infrastructure to maximise our productive capacity and economic prosperity. But how do we know if we are on the right track? How much investment is enough, and what is the optimal level of public investment in infrastructure? This paper proposes a framework for evaluating current and future levels of financing for public infrastructure. Rather than relying on arbitrary comparisons with Canadas post war ‘golden age’ of infrastructure investment (an all too common standby in political circles), we propose a standard that is based...
    ABSTRACT
    Research Interests:
    Canada could be about to lose its tax competitive advantage it currently enjoys in attracting investment to its oil sector: its low corporate tax and royalty rates compared to the U.S. While we will start to know better the details of a... more
    Canada could be about to lose its tax competitive advantage it currently enjoys in attracting investment to its oil sector: its low corporate tax and royalty rates compared to the U.S. While we will start to know better the details of a U.S. tax reform package in the next month or so, two reform plans provide a basis to analyze potential impacts: the tax-reform “Blueprint” put forward last year by the Republican-controlled House of Representatives, and President Donald Trump’s own reform proposals. Either one, or even a hybrid version of the two, would make tax and royalty effective tax rates on new investment in the U.S. oil industry significantly more attractive to investors. Combined with the lack of any plans for a U.S. carbon tax and the lightening U.S. regulatory environment, investing in American oil might soon look more compelling than investing in Canadian oil. And when the price of oil eventually rises again, the attractiveness of Canada to international investors will dim...
    To answer the question posed in our title, we first review how corporate income taxes are shared in federal countries, EU efforts to harmonize corporate taxes, and previous experience with attempts at ‘global’ taxation. In all cases, the... more
    To answer the question posed in our title, we first review how corporate income taxes are shared in federal countries, EU efforts to harmonize corporate taxes, and previous experience with attempts at ‘global’ taxation. In all cases, the main lessons that emerge are that it takes much time and effort to reach any agreement and that any feasible solution is most unlikely to require much if any redistribution across jurisdictions. In the absence of any agreed global governance structure, the only way to build a better international tax system is through voluntary cooperation. We consider some of the elements such as transparency, inclusivity, and perceived fairness that appear essential to creating such an international alliance. To make much progress in this direction the most feasible approach is likely to start small, allowing countries considerable leeway to do things ‘their way’ to the extent possible while moving towards a common tax framework that may perhaps, over time, provide a basis for more ambitious measures.
    In the past decade, Canada has undertaken extensive business tax reform, with sharply lower corporate income tax rates, better capital cost allowances, sales tax harmonization, and the virtual elimination of capital tax on non-financial... more
    In the past decade, Canada has undertaken extensive business tax reform, with sharply lower corporate income tax rates, better capital cost allowances, sales tax harmonization, and the virtual elimination of capital tax on non-financial businesses. Further changes are in store by 2012 that will put Canada in the middle of the pack of a broad group of 80 countries. Over the past several years, however, Canada has lost some standing. In 2005, it was the fourth-highest-taxed country, and by 2007 it had improved to thirteenth highest; by 2009, though, it had worsened to tenth highest. Still, in that year, taking into account the reforms that had taken place, Canada’s business tax structure was better than that of the United States. Canada’s tax competitiveness among the Group-of-7 major industrialized countries has also improved, but still lags that of most other members of the Organisation for Economic Cooperation and Development (OECD). Additional reductions of business taxes by 2013 — particularly sales tax harmonization in Ontario and British Columbia and planned federal and provincial corporate tax rate reductions — will further improve Canada’s business tax competitiveness, crucially with respect to the emerging economies of Brazil, Russia, India, and China. Yet federal opposition parties are urging an end to further planned reductions of federal and provincial corporate income tax rates. Such a move would be seriously misguided. Not only would it put Canada’s tax competitiveness at a disadvantage among OECD countries, impairing productivity; it would also harm government revenues as businesses shifted their profits out of high-tax jurisdictions and into lower-tax one abroad.

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