Ten days ago, Jack Mintz released yet another paper claiming that international competitiveness requires continued corporate tax cuts. In addition to the usual questionable interpretations, it featured at least one straight factual error. Mintz inaccurately reports Iceland’s 2010 statutory corporate tax rate as 15% (Table 2 on page 7 and Table 3 on page 9 in the PDF). In reality, […]
Read moreToday’s Saskatoon StarPhoenix and Regina Leader-Post cover my recent analysis of PotashCorp’s annual report. I suggested that the company may be paying less corporate income tax to Saskatchewan than to Trinidad. PotashCorp could clear things up anytime by simply disclosing the amount of corporate tax it paid to the Saskatchewan government. Rather than doing so, its spokesman argues that the […]
Read moreGrowing up in Saskatchewan, I never imagined myself blogging in praise of Rick Swenson. First, blogs did not exist then. Second, I generally disagreed with Swenson, a former cabinet minister in Grant Devine’s Progressive Conservative government. Swenson is back as leader of the provincial Progressive Conservative party, whose caucus quit to join with right-wing Liberals and federal Reformers to create the […]
Read moreThe “science†of economics has for most of its history relied on theory more than experimentation, which is quite literally the testing grounds of all “real†science. The birth of behavioural economics in the 1970s permitted economists to start testing theory rigorously, by borrowing empirical methods from psychology and other social sciences to lift the veil behind what makes us, […]
Read more“The already wealthy have emerged from the global recession in an even wealthier position. What does the rise of global elites mean to power and influence at home and abroad?” That’s the blurb from TVO’s The Agenda with Steve Paikin, the latest Canadian news show to tackle the issue that explains so much of what is going on: rising inequality. […]
Read moreI was at our neighbourhood leftie bookstore today and picked up a copy of the new book from John Loxley at the University of Manitoba: Aboriginal, Northern, and Community Economic Development: Papers and Retrospectives (Arbeiter Ring: 2010). It’s a collection of John’s work over the years in the area of first nations and northern economic development. He has dedicated untold […]
Read moreBoomers are getting blamed for an awful lot of fiscal problems these days. But blaming an aging population for healthcare costs spiraling out of control is misplaced. Missing opportunities to manage and contain costs is the real culprit. Take, for example, our spending on prescription drugs. Costs in that part of the healthcare system have been rising by almost 10% […]
Read moreMultinational corporations generally provide more detail to the US Security and Exchange Commission than in their Canadian annual reports. Thank goodness for American disclosure requirements. Along with its 2010 Annual Report, PotashCorp released its Annual Report on Form 10-K (a Security and Exchange Commission filing) on Friday afternoon. The following section is on pages 14 and 15: Royalties and Certain […]
Read moreThe Potash Corporation of Saskatchewan posted its 2010 annual report yesterday. It’s always worth taking a closer look at documents released on a Friday afternoon. Those interested in public revenues should see pages 109, 110 and 111. Note 19’s breakdown of “Provincial Mining and Other Taxes†confirms something that I had suspected. PotashCorp paid zero Potash Production Tax in 2010. […]
Read more(Revised Post adds detail.) If you read the Economist as I do you will be struck by those full page ads extolling the virtues of first class and business travel on Emirates airlines. A lounge on board. For those in first, a private suite with full fold out bed to sleep on. Even hot showers. Limo pick up and delivery to […]
Read moreI’m finding the run-up to the federal Budget (widely expected March 22nd) more than a little frustrating. There is certainly no sharp public policy debate regarding budget priorities. The dominant media frame reinforces the Conservative message that 1) recovery is underway 2) the federal books have to be balanced and 3) tax increases are bad. This frame excludes discussion of […]
Read moreStatscan investment intentions data released today show thatgrowth of  real investment by the private sector is set to slow markedly in 2011 compared to 2010. (up 3.8% vs up 8.0% in 2010.) So much for the stimulative effect of corporate tax cuts. Surprise, surprise investment is concentrated in the resource sector, especially oil, where high prices and profits guarantee high returns to […]
Read moreMy new colleague Chris Roberts has prepared an analysis of the pros and cons of the Canada Pension Plan and the proposed Pooled Registered Pension Plans. The following is taken from the introduction: “Pooled Registered Pension Plans are privately administered workplace pension plans similar in many respects to a defined contribution (DC) workplace pension plan, or group Registered Retirement Savings […]
Read moreBelow is an oped on my new carbon pricing paper that was published today in the Vancouver Sun. Our communications officers have also done a cool animation about carbon pricing in BC, available on the CCPA web page. Look to Europe for Next Phase of BC’s Carbon Tax When it comes to good urban planning, transportation and taking action on […]
Read moreOne of my pet beefs is the frequently heard CFIB claim that small businesses are the job creators, not large enterprises. What is small and what is big? It all depends on whether you look at the size of the workplace, or the number of employees of a company at all locations. Wal Mart may be modest in size by […]
Read moreClimate change is upon us – it feels like we see evidence almost daily in the form of extreme weather events, floods, drought, reductions in food supply, and so on. We have a lot of work to do to transform our economy from one still dominated by a resource extraction mindset, where we cut taxes and regulations in the hopes […]
Read moreI recently came across a fascinating working paper from the good folks at the Levy Institute, which provides some new data on Canada’s rather subservient role in world commerce: “Product Complexity and Economic Development,” by Arnelyn Abdon, Marife Bacate, Jesus Felipe (corresponding author), and Ustav Kumar.
Read moreThe National Post ran a little pro-and-con debate on minimum wages in today’s paper. I was the “pro” side; my argument was excerpted from a longer paper on “What determines wages and income distribution” that is available on the CAW’s web site. The “con” side was written by two economists at the Fraser Institute.
Read moreThe comment pages of Saskatchewan’s newspapers have been abuzz with debate about potash royalties since my latest op-ed on the subject appeared in the Saskatoon StarPhoenix a couple of weeks ago. Two days later, political columnist Murray Mandryk made the case that the province should demand higher royalties rather than just accepting a few more jobs and charitable donations from the Potash […]
Read moreThis article first appeared in the Globe and Mail’s online feature Economy Lab on Friday. My thanks to all the commentators on this page for the great discussion of the topic. This week, the Minister of Immigration and Citizenship rightly noted that immigrants are Canada’s ticket to economic growth in the coming years. The untold story is this: Canada’s growing […]
Read moreThis blog has been posted on behalf of Bruce Campbell, Executive Director of the Canadian Centre for Policy Alternatives. The first version of this piece originally appeared in the blogosphere at the Huffington Post The Irish people go to the polls on February 25. The governing Fianna Fail party — that created the fallen Celtic Tiger economic model and is […]
Read moreToday’s National Post gave front page coverage to a “study” from the Frontier Centre claiming that wages of public servants have far outstripped those of private sector workers over the past decade. “Wage increases doled out to federal and provincial public servants have nearly doubled those given to private-sector employees in the past decade, according to a new report that […]
Read moreI was taken a bit aback by Kevin Carmichael’s piece on Obama’s budget plans in today’s ROB. In what is more a news than an opinion piece on concerns regarding fiscal sustainability in the US , he baldly states without attribution that “Research and history suggests that a debt-to-GDP ratio of 60 per cent or higher is a prelude for […]
Read moreAdvocates of corporate tax cuts like comparing Canada to an unweighted average of Organisation for Economic Co-operation and Development members. Since the OECD keeps admitting more microscopic economies with very low corporate tax rates, this average keeps falling regardless of whether any country actually lowers its rate. Last year’s admission of Estonia, Israel and Slovenia dragged the OECD average just […]
Read moreA couple of weeks back I summarized five economic reasons to say no to further corporate tax cuts right now. A print edition of the piece caught the eye of Finance Canada, which fired off a chastening letter on February 10th saying:
Read moreFor the wine lovers among us progressive economists, which definitely includes me, this NBER paper offers up a, well, sobering argument. “We examine the value of terroir, which refers to the special characteristics of a place that impart unique qualities to the wine produced. We do this by conducting a hedonic analysis of vineyard sales in the Willamette Valley of […]
Read moreThe CFIB hav a new study out attacking minimum wages Their estimate of job losses from a 10% increase in minimum wages is based on elasticities from studies which found significant negative impacts on employment and discounts the many studies which have found very small impacts. The OECD – which is more impartial – has found the effect of minimum […]
Read moreThe Canadian Press summary of the Prime Minister’s comments raised my eyebrows, but it was not a direct quote. So, I checked the Parliament of Canada website: Right Hon. Stephen Harper (Prime Minister, CPC): There is not a single business organization, not a single credible voice in this country, that supports the tax hikes proposed by the Liberal Party. It […]
Read moreThis blog has long been critiquing Saskatchewan’s inadequate potash royalties. But every time I check the numbers, I am again shocked by how low they have fallen. In 2010, the Potash Corporation of Saskatchewan paid just a nickel in provincial royalties for every dollar of gross margin it made on potash. I have the following op-ed in today’s Saskatoon StarPhoenix: […]
Read moreFor the past few weeks, a business leader could scarcely pick up a magazine without bumping into that other inconvenient truth of our era: rising inequality. It’s been the topic of discussion everywhere from the Economist, to The Atlantic, to the World Economic Forum. Today CTV’s Business News Network (BNN) launched a three-part series looking at the gap between the […]
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