This paper provides an empirical estimation of the effects of provincial corporate tax rates on economic growth using annual panel data from Canadian provinces over the period 1981-2016. Our empirical approach enables us to investigate the long-run relationship between provincial tax rates and...

Shortly after its election in May 2019, the new Alberta government began fulfilling its promise to reduce the provincial corporate income tax (CIT) rate. The rate cut began in July 2019, when the government dropped the CIT rate from 12 to 11 per cent. The rate is scheduled to decline to 10 per...

This communiqué is based on the following paper: The Costliest Tax of All: Raising Revenue Through Corporate Tax Hikes can be Counter-Productive for the Provinces by Ergete Ferede and Bev Dahlby. Raising taxes can come at a high cost. Not just to taxpayers, of course, but to the economy. Every...