Last week the federal government announced a $4.7-billion tax expenditure, along with a two-month sales tax change that will create severe administrative and logistical nightmares for businesses, and whose effect on federal revenue the government seems to have badly miscalculated. According to economist Trevor Tombe, it will likely cost around $3.0 billion, versus the $1.6 billion the government estimates. Ottawa branded this $7.7-billion package an affordability measure and tax “holiday.” It is nothing of the kind. It is ridiculous nonsense, which this government delivers on a regular basis and is what Canadians really need a holiday from. Read More
