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Pilot projects in the past that have experimented with a Guaranteed Basic Income (GBI) in Manitoba and Ontario, and a recent study of the feasibility of a GBI in British Columbia, indicate that provinces are not in an ideal position to successfully implement an affordable and effective GBI. However, a GBI implemented by the federal government, financed by eliminating the GST credit and lowering personal tax exemptions, could be both effective and affordable. It could also do so without requiring the elimination of those provincial social assistance programs that are more deeply targeted toward people’s needs. By using its revenue powers, the federal government could create more fiscal capacity for the provinces to provide other cash and in-kind social supports, allowing for greater provincial benefit targeting. The federal government’s centrality in designing and implementing tax structures and collecting tax revenue make it singularly suitable for administering and delivering a GBI. Financing the GBI by eliminating the modest GST credit and lowering the current basic personal income tax exemption could provide a significant reduction in the rate, depth and intensity of poverty in Canada, without imposing an excessive tax burden on Canadians. If provinces use the GBI as a replacement for certain less-targeted provincial social assistance income transfers, the freed-up payments and reduced caseloads could also allow provinces to target more effectively those needs not addressed by the GBI. The recent COVID-19 pandemic exposed longstanding gaps in Canada’s incomesupport frameworks, with lower-income workers facing exceptional economic vulnerability. At the same time, the Canadian Emergency Response Benefit proved edifying in terms of how to best design a basic-income program. In addition, the federal government’s experiences with the poverty-reducing impacts of the Canada Child Benefit, the Old Age Supplement and the Guaranteed Income Supplement have moved Canada closer than ever to a workable GBI. While it comes with additional costs, those costs will be less burdensome than many GBI skeptics might believe. They must also be put into perspective, by comparing them against the costs of current and, in many cases ineffective income transfers and, just as importantly, against the human cost of leaving more Canadians living in poverty. [ABSTRACT FROM AUTHOR]

This paper contributes to the literature on fiscal equalization and corporate tax competition. The innovation is that we explicitly model multinational enterprises and a corporate tax system that is designed according to formula apportionment. Two main results are obtained. First, in contrast to previous studies we identify cases where tax revenue equalization is better in mitigating detrimental tax competition than tax base equalization. Second, tax base equalization nevertheless has the advantage that it may render tax rates efficient, depending on the shape of the apportionment formula. A pure payroll formula does not ensure efficiency, but a back‐of‐the‐envelope calibration of our model to Canadian provinces suggests that a pure sales formula may be optimal. [ABSTRACT FROM AUTHOR]

The article discusses incidence of Corporate Income Tax (CIT) on wages under tax policy of Canada. It also states the open economy situation under general equilibrium model. Topics discussed includes Corporate tax in Canada, incidence of tax on lower wages and marginal product of labor and wages.

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Estate planning offers taxpayers a means of distributing their assets, subsequent to death, in a way that minimizes tax liabilities for both the deceased and their beneficiaries. Serious obstacles can arise if the estate has non-resident beneficiaries and a significant portion of its value is derived from shares of a Canadian investment corporation. The authors of this two-part article examine Canadian and US tax implications for a Canadian resident who wishes to bequeath shares of a Canadian investment corporation to beneficiaries that include both Canadian and US residents. In part 1, the authors reviewed how the residence of an estate is determined pursuant to Canadian rules and US tax rules, the application of US anti-deferral rules, and the resulting unexpected tax liabilities for US-resident beneficiaries. In part 2, they discuss the use of unlimited liability corporations and other planning strategies that may be used to mitigate the overall tax burden on the deceased and their beneficiaries. [ABSTRACT FROM AUTHOR]