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Estonia’s solution to Canada’s stagnating economic growth

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From the Fraser Institute

By Callum MacLeod and Jake Fuss

The only taxes corporations face are on profits they distribute to shareholders. This allows the profits of Estonian firms to be reinvested tax-free permitting higher returns for entrepreneurs.

new study found that the current decline in living standards is one of the worst in Canada’s recent history. While the economy has grown, it hasn’t kept pace with Canada’s surging population, which means gross domestic product (GDP) per person is on a downward trajectory. Carolyn Rogers, senior deputy governor of the Bank of Canada, points to Canada’s productivity crisis as one of the primary reasons for this stagnation.

Productivity is a key economic indicator that measures how much output workers produce per hour of work. Rising productivity is associated with higher wages and greater standards of living, but growth in Canadian productivity has been sluggish: from 2002 to 2022 American productivity grew 160 per cent faster than Canadian productivity.

While Canada’s productivity issues are multifaceted, Rogers pointed to several sources of the problem in a recent speech. Primarily, she highlighted strong business investment as an imperative to productivity growth, and an area in which Canada has continually fallen short. There is no silver bullet to revive faltering investment, but tax reform would be a good start. Taxes can have a significant effect on business incentives and investment, but Canada’s tax system has largely stood in the way of economic progress.

With recent hikes in the capital gains tax rate and sky-high compliance costs, Canada’s taxes continue to hinder its growth. Canada’s primary competitor is the United States, which has considerably lower tax rates. Canada’s rates on personal income and businesses are similarly uncompetitive when compared to other advanced economies around the globe. Uncompetitive taxes in Canada prompt investment, businesses, and workers to relocate to jurisdictions with lower taxes.

The country of Estonia offers one of the best models for tax reform. The small Baltic state has a unique tax system that puts it at the top of the Tax Foundation’s tax competitiveness index. Estonia has lower effective tax rates than Canada—so it doesn’t discourage work the way Canada does—but more interestingly, its business tax model doesn’t punish investment the way Canada’s does.

Their business tax system is a distributed profits tax system, meaning that the only taxes corporations face are on profits they distribute to shareholders. This allows the profits of Estonian firms to be reinvested tax-free permitting higher returns for entrepreneurs.

The demand for investment is especially strong for capital-intensive companies such as information, communications, and technology (ICT) enterprises, which are some of the most productive in today’s economy. A Bank of Canada report highlighted the lack of ICT investment as a major contributor to Canada’s sluggish growth in the 21st century.

While investment is important, another ingredient to economic growth is entrepreneurship. Estonia’s tax system ensures entrepreneurs are rewarded for success and the result is that  Estonians start significantly more businesses than Canadians. In 2023, for every 1,000 people, Estonia had 17.8 business startups, while Canada had only 4.9. This trend is even worse for ICT companies, Estonians start 45 times more ICT businesses than Canadians on a per capita basis.

The Global Entrepreneurship Monitor’s (GEM) 2023/24 report on entrepreneurship confirms that a large part of this difference comes from government policy and taxation. Canada ranked below Estonia on all 13 metrics of the Entrepreneurial Framework. Notably, Estonia scored above Canada when taxes, bureaucracy, burdens and regulation were measured.

While there’s no easy solution to Canada’s productivity crisis, a better tax regime wouldn’t penalize investment and entrepreneurship as much as our current system does. This would allow Canadians to be more productive, ultimately improving living standards. Estonia’s business tax system is a good example of how to promote economic growth. Examples of successful tax structures, such as Estonia’s, should prompt a conversation about how Canadian governments could improve economic outcomes for citizens.

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Rand Paul Releases Report Detailing $1,000,000,000,000 In Gov’t Waste. Here Are The Worst Offenders

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From the Daily Caller News Foundation

By Ireland Owens

Kentucky Sen. Rand Paul released a report on Monday outlining more than $1 trillion in government waste from the past year.

The 2024 “Festivus” report highlighted various instances of wasteful government spending from the federal government, including a pickleball complex in Las Vegas and a cabaret show on ice. This year marks Paul’s 10th annual report.

“This year, I am highlighting a whopping $1,008,313,329,626.12,” Paul wrote in the report. “That’s over $1 trillion in government waste, including things like ice-skating drag queens, a $12 Million Las Vegas pickleball complex, $4,840,082 on Ukrainian influencers, and more! No matter how much money the government has wasted, politicians keep demanding even more.”

The Department of the Interior (DOI) spent $12 million on a Las Vegas Pickleball Complex, according to the report. The DOI also spent $720,479 on wetland conservation projects for ducks in Mexico.

“I have a lot of problems with federal spending, and now it’s time to hear all about them,” Paul wrote in the report.

The National Endowment for the Arts (NEA) awarded the Bearded Ladies Cabaret a $10,000 grant to support a cabaret show on ice skates focused on climate change, according to the report. The NEA also spent $365,000 to promote circuses in city parks, the report states.

The State Department spent $500,000 to expand the U.S. Embassy in Ethiopia’s #USInvestsInEthiopians social media campaign to a larger national public relations campaign, according to the report. The State Department also sent $253,653 to Bosnia to fight “misinformation,” spent $2.1 million for Paraguayan Border Security, and spent $3 million for ‘Girl-Centered Climate Action’ in Brazil, according to the report.

The Department of Health and Human Services spent $419,470 to determine if lonely rats seek cocaine more than happy rats, the report states.

The National Science Foundation spent $288,563 to ensure bird watching groups have safe spaces, also known as “Affinity Groups,” according to the report.

President-elect Donald Trump announced on Nov. 12 that he had picked Vivek Ramaswamy and Elon Musk to co-chair a new Department of Government Efficiency (DOGE), aimed at cutting down on wasteful government spending.

“As always, taking the path to fiscal responsibility is often a lonely journey, but I’ve been fighting government waste like DOGE before DOGE was cool, Paul wrote in the report. “And I will continue my fight against government waste this holiday season.”

Many Americans have faced steep costs amid high inflation throughout President Joe Biden’s term, with inflation hitting a peak of 9.1% in June 2022. While inflation rates have eased some since June 2022, prices still remain high, with the consumer price index (CPI), a measure of the price of everyday goods, experiencing a year-over-year increase of 2.7% in November, according to a Dec. 11 report from the Bureau of Labor Statistics.

Some experts have attributed massive government spending under the Biden-Harris administration to fueling inflation rates. The national debt was at $36.16 trillion as of Tuesday, according to U.S. Treasury Fiscal Data.

A spokesperson for Rand Paul did not immediately respond to a request for comment from the Daily Caller News Foundation.

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Canadian military deployed ‘gender advisors’ to Ukraine, Haiti  at taxpayers’ expense

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From LifeSiteNews

By Anthony Murdoch

The Canadian Armed Forces has been pushing a radical LGBT agenda under Prime Minister Justin Trudeau, with the latest example being ‘Task Force Gender Advisors’ deployed in war-hit nations, such as Haiti and Ukraine.

Canada’s military has been actively pushing a woke pro-LGBT agenda on the world stage, with the latest example being its deployment of “task force gender advisors” internationally in war-hit nations, such as Haiti and Ukraine.

The “gender advisors” initiative is noted in the 2024 Departmental Report of the Canadian Armed Forces (CAF). This has resulted in it drawing a sharp rebuke from veterans who wonder why the military is spending money on pushing the LGBT agenda abroad.

The CAF report notes how in Poland, for instance, the “Task Force Gender Advisor was involved in all aspects of this training mission and supported the local Defence Attaché in connecting with local and Ukraine-based non-governmental organizations and interested parties.”

The report noted how the “gender advisor” as well as “gender focal points” were sent to military missions in Eastern Europe, including Ukraine, Poland, and Latvia throughout 2023.

In war-torn Haiti, “intersectional factors (were) being applied towards stabilization and humanitarian efforts,” via an “Operations HORIZON and PROJECTION” initiative.

This initiative is part of the third “National Action Plan on Women, Peace, and Security for 2023-2029.” This is a program that looks to advance pro-LGBT ideology, such as concepts of different “genders,” in all military operations.

Under Prime Minister Justin Trudeau, the CAF, as well as all government departments, have pushed an ever-increasing woke agenda, as well as a host of so-called diversity, equity, and inclusion (DEI) policies in place.

The military’s action plan notes how there are no less than three full-time “gender advisors” who are in the CAF at all levels.

The president of Veterans for Freedom, Andrew MacGillivray, blasted the woke DEI policies, saying the program has morphed into a “useless overbearing policy that has infiltrated every aspect of the Canadian Armed Forces.”

He noted that war-torn nations most likely don’t care “about gender nonsense being pushed by Canada when they are struggling to keep people alive.”

Since Trudeau became PM, the CAF has become increasingly woke and has been forcing LGBT ideology on many of its personnel. It has also seen recruitment plummet to all-time lows.

As reported by LifeSiteNews, earlier this year, Canada’s first “transgender” military chaplain was suspended for alleged sexual harassment, after he reportedly sought to grope a male soldier at the Royal Military College while drunk.

Canada’s military has spent millions of taxpayer dollars on pro-DEI polls, along with guest speakers, presentations, and workshops, as well as LGBT flags. The workshops covered topics including “the gendered nature of security,” while one talk discussed “integrating gender and diversity perspectives.”

In 2021, the defence department revealed that it has two separate committees and eight programs that worked to appoint homosexual advisors to “innovate” religious instruction and gender-neutral uniforms.

In June of 2023, the Canadian military was criticized for “raising the pride flag” in honor of the so-called “2SLGBTQI+ communities.”

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