Author: Casey Vander Ploeg
This report explores taxation in Canada with a special emphasis on how the four western provinces, as a region, fit into the broader Canadian tax picture. The discussion begins by presenting general data that speak to the relative tax competitiveness of Canada in the international community and the relative competitiveness of the four western provinces within Canada. After considering the relative competitiveness of taxation in the West, the report moves on to argue why western Canadian provinces should consider embarking on a program of tax reform, key considerations and constraints that should be kept in mind, and the ultimate goals of tax reform. Several key principles that should be at the centre of any tax reform program are then explored and discussed.
The report concludes by working through three broad tax areas: 1) personal income taxation; 2) various forms of corporate taxation; and 3) sales taxes. A description of each of the major taxes is given, recent developments are reported upon, and the competitiveness of the West is more fully explored. The discussion for each tax concludes with a list of potential tax reforms that western Canadians ought to consider in building a more competitive tax system.