daftandbarmy
Army.ca Dinosaur
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Our national race to the bottom continues...
Canada's growth rate predicted to be slowest in advanced economies.
“Systemic” is the adjective of the decade. Well, Canada has a systemic problem with economic growth. The OECD projects the growth rate of our GDP per capita will be slower than in every other rich country over the intermediate and longer term. The cause is anemic productivity growth, combined with an aging population. It is exacerbated by high taxes, deteriorating public finances and intrusive regulation.
Economic theory and history both point to significant negative effects of uncompetitively high, complex and distortionary corporate taxes, including a lower depreciation allowance rate. Their effect is raise the cost of capital, cut the returns to investment and thus discourage wealth creation. At the same time, soaring personal income taxes discourage work but encourage top-performing executives and professionals to leave for less punishing jurisdictions. And, perversely, by lowering economic growth, uncompetitive tax rates can actually reduce overall tax revenues.
To provide fiscal room for the tax reductions we need, governments must halt extravagant spending, hire fewer public servants and regulate less intrusively.
Under current plans, however, the federal deficit will hit $43 billion, driving up debt to $1.2 trillion by year’s end. Interest charges, the fastest growing federal expense, will reach $50 billion in 2027. Public-sector profligacy on this scale crowds out private capital investment, undermines productivity growth and limits the possibility of stimulus spending during any future economic slowdown.
Which brings me to our immense energy sector, comprising about a tenth of the economy, with the fourth largest proven crude oil reserves in the world and the fifth largest natural gas reserves. The federal government’s decision to deliberately block fossil fuel access to tidewater and overseas markets, confining exports to the deeply discounted U.S. market, has stranded our vast energy reserves, precluded significant revenue for social programs, undermined national unity and energy security, eradicated jobs in Alberta and across the country and rendered us useless to European allies desperate to replace gas blocked by Putin’s irredentist regime. And what remains of our energy sector must cope with a carbon tax, clean-fuel regulations and a cap on emissions, which the Fraser Institute estimates will cost at least $44 billion in 2030, while providing minimal environmental benefits.
Joe Oliver: To make Canada more productive cut taxes, deficits, regulations and more
Joe Oliver: To make Canada more productive cut taxes, deficits, regulations and more
Canada's growth rate predicted to be slowest in advanced economiesCanada's growth rate predicted to be slowest in advanced economies.
“Systemic” is the adjective of the decade. Well, Canada has a systemic problem with economic growth. The OECD projects the growth rate of our GDP per capita will be slower than in every other rich country over the intermediate and longer term. The cause is anemic productivity growth, combined with an aging population. It is exacerbated by high taxes, deteriorating public finances and intrusive regulation.
Economic theory and history both point to significant negative effects of uncompetitively high, complex and distortionary corporate taxes, including a lower depreciation allowance rate. Their effect is raise the cost of capital, cut the returns to investment and thus discourage wealth creation. At the same time, soaring personal income taxes discourage work but encourage top-performing executives and professionals to leave for less punishing jurisdictions. And, perversely, by lowering economic growth, uncompetitive tax rates can actually reduce overall tax revenues.
To provide fiscal room for the tax reductions we need, governments must halt extravagant spending, hire fewer public servants and regulate less intrusively.
Under current plans, however, the federal deficit will hit $43 billion, driving up debt to $1.2 trillion by year’s end. Interest charges, the fastest growing federal expense, will reach $50 billion in 2027. Public-sector profligacy on this scale crowds out private capital investment, undermines productivity growth and limits the possibility of stimulus spending during any future economic slowdown.
Which brings me to our immense energy sector, comprising about a tenth of the economy, with the fourth largest proven crude oil reserves in the world and the fifth largest natural gas reserves. The federal government’s decision to deliberately block fossil fuel access to tidewater and overseas markets, confining exports to the deeply discounted U.S. market, has stranded our vast energy reserves, precluded significant revenue for social programs, undermined national unity and energy security, eradicated jobs in Alberta and across the country and rendered us useless to European allies desperate to replace gas blocked by Putin’s irredentist regime. And what remains of our energy sector must cope with a carbon tax, clean-fuel regulations and a cap on emissions, which the Fraser Institute estimates will cost at least $44 billion in 2030, while providing minimal environmental benefits.
Joe Oliver: To make Canada more productive cut taxes, deficits, regulations and more