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Taxation

Domestic prices and the appreciation of the Canadian dollar

Canadian consumers believe that they are not getting the full value at the check-out counter of the substantial appreciation in the Canadian dollar during the last five years. An exchange rate appreciation makes exports more expensive and imports less expensive. While this creates a more competitive selling environment for the producers of exportables, at the same time it provides a more favorable environment for consumers and importers.

The perverse effects of tax measures

With Quebec’s new provincial budget coming soon, it is worth questioning the nature and effectiveness of tax measures applied by the government. As usual, the budget is sure to contain a series of new tax measures aimed at meeting various political goals. Our elected representatives may need reminding that intentions and results do not always coincide: caution is called for when government actions rely on tinkering with taxation.

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