Electoral Reform Blog

Face the facts

If you don’t have the facts, it makes it that much easier to simply apply your own ideology. But it doesn’t mean good results are on the way for everyone involved.

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OECD to Canada: tax stock options to combat inequality

The OECD Economic Survey of Canada released today calls for tax reforms which would increase government revenues while also reducing inequality, specifically calling for changes to preferential treatment of stock options.

Noting that income inequality in Canada is above the OECD average and has been rapidly rising in recent years, the organization states that "there is also scope for the federal government to increase efficiency and reduce income inequality by further reducing tax expenditures that benefit relatively higher income households, such as... preferential treatment of stock options” (p. 38).

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Who wins with income splitting?

If Stephen Harper’s goal was to design a tax policy to make income inequality in this country even worse, he can pat himself on the back. That’s exactly what the Conservatives’ family income-splitting tax scheme will do.

Research from various organizations across the political spectrum has demonstrated already that this tax policy, projected to cost the federal treasury $3 billion in 2015, would be an expensive and inequitable tax giveaway.

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Broadbent Institute study finds income splitting would result in many losers, few winners, big regional variations

Detailed analysis of Conservative proposal reveals deeply unequal scheme

OTTAWA—Two out of three families targeted by the Conservative income splitting plan would receive less than $500 while fewer than 4% of such families – some of the wealthiest in Canada – would be eligible for a benefit in excess of $5,000, a new study by the Broadbent Institute has found.

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