Oil price fluctuations, concerns over the division of resource revenues, and unconventional oil and gas developments are forcing governments to confront the same issue: how to design optimal royalty and corporate tax systems that bring in a publicly acceptable share of revenues without...

Canada lags behind many of its First World counterparts when it comes to business innovation, and urgently needs to improve its performance if it is to remain competitive and attractive to investment. The Expert Panel Report on Federal Support to Research and Development has recommended several...

The province of Ontario ended its most recent fiscal year with a $12 billion deficit and the Fraser Institute has calculated that the province is in worse financial shape than even the fiscally appalling state of California. One would think that a province so financially debilitated would want...

The Canadian personal income tax system does not pay much attention to whether the amount of money an individual brings home is supplemented by the income of a spouse or not. That means that families where one spouse earns more than the other get taxed at a higher rate than families where two...

In a world without taxes, investors that take over companies would do so because they expect to be able to operate the business efficiently and at a high rate of return. But in Canada today, some acquirers enjoy tax advantages over others. And that could mean that certain buyers, who may not be...

For a government's fiscal program to best serve the public interest, while also ensuring sufficient public revenue collection, it has to meet three criteria: efficiency, simplicity and fairness. Unfortunately, the royalty and tax system currently in place for Saskatchewan's robust potash-mining...

This bulletin presents estimates of effective corporate tax rates on new capital investment for 83 countries. “Effective” tax rates take into account statutory rates plus tax-base items that affect taxes paid on new investment, such as depreciation deductions, inventory allowances, and...

Corporate income tax reform is receiving serious consideration in Washington. The Obama administration has suggested reducing the federal corporate tax rate from 35 percent to 28 percent while broadening the tax base. The urgency of tax reform increased when Japan recently enacted a reduction to...