Ontario's Bold Move to Create Jobs and Growth: Impact of the 2009 Ontario Budget and Other Recent Tax Measures on Investment, Jobs and Incomes
In: The School of Public Policy Publications, Band 1, Heft 4
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In: The School of Public Policy Publications, Band 1, Heft 4
SSRN
In: Canadian public policy: Analyse de politiques, Band 34, Heft 4, S. 519-520
ISSN: 1911-9917
In: Canadian public policy: a journal for the discussion of social and economic policy in Canada = Analyse de politiques, Band 34, Heft 4, S. 519-521
ISSN: 0317-0861
In: Hong Kong Institute for Monetary and Financial Research (HKIMR) Research Paper WP No. 09/2001
SSRN
In: IMF Working Paper, S. 1-39
SSRN
In: A Common Consolidated Corporate Tax Base for Europe — Eine einheitliche Körperschaftsteuerbemessungsgrundlage für Europa, S. 128-138
In: Working paper series 9302
In: Discussion paper 2
In: Discussion paper no. 539
In: Discussion paper - Institute for Economic Research, Queen's University no. 348
In: Discussion paper - Institute for Economic Research, Queen's University no. 356
In: Discussion paper - Institute for Economic Research, Queen's University 294
In: The School of Public Policy publications: SPP communiqué, Band 7
ISSN: 2560-8320
From private debt and equity markets to crowd funding, exempt markets have been used to raise more money for Canadian enterprises in recent years than all public offerings put together. Vastly more: Between 2010 and 2012, exempt-market offerings raised four times as much capital as the initial and secondary public offerings during the same period. The precise reasons behind the immense popularity of exempt markets can only be guessed at; it may well be due to the desire, by both issuers and by investors, to avoid the regulatory costs associated with raising capital in public markets. We are left to speculate, however, because the Canadian exempt market remains relatively unstudied, despite its enormous role in funding capital investments in Canada. The lack of information about exempt markets, however, is not stopping provincial regulators in Canada's largest markets from charging ahead with new proposals for rules that would govern exempt markets. Unfortunately, with so little information available about these markets, whatever the aim of the reforms in pursuing the goals of effective market regulation, they may end up being more harmful than helpful. Ontario is proposing to broaden the category of investors eligible to participate in these markets under a new exemption. But the category will remain stricter than in many other markets and Ontario proposes to also put very low limits on how much each investor is allowed to put at risk. Quebec, Alberta and Saskatchewan are also proposing the same $30,000 limit for any given 12-month period. And Ontario will prohibit the sale of exemptmarket securities by agents that are related to, or affiliated with, the registrant, even if measures are employed that have previously been accepted in managing and mitigating conflicts of interest. This will have a direct and damaging impact on exempt-market dealers, who are only allowed to sell exempt-market securities. All of these proposals are intended to protect investors from the higher risks that are presumed of exempt markets. However, there is no evidence — given the paucity of information about them — that exempt markets necessarily pose a greater risk of fraud or poorer returns and losses than do heavily regulated public markets. And if risk is indeed higher in the exempt markets, one would expect these proposed regulations to assist highquality firms from distinguishing themselves in the exempt market from low-quality firms. However, these regulations may actually have the opposite effect, making it harder for better-quality firms to signal their worthiness to investors. Canadian productivity — which continues to lag relative to other developed economies — relies heavily on businesses being able to acquire capital for investing in new technologies. Canadian companies and investors appear to be voting with their feet for exempt markets in raising that capital, possibly discouraged from public markets by regulatory costs and inefficiencies. For policy-makers to layer additional regulation on top of exempt markets without fully understanding the impact that it will have, could well result in making Canadian markets, and Canada's economy, weaker, rather than stronger.
In: The School of Public Policy publications: SPP communiqué, Band 4
ISSN: 2560-8320
If voters kill British Columbia's Harmonized Sales Tax (HST) in a June referendum, the province's economy will suffer in the long run. A rejection will spur the rebirth of the provincial retail sales tax, leading to steep increases in the marginal effective tax rates on capital and costs and a corresponding dip in investment and job creation. Should voters decide to keep the HST, BC will reduce the tax by two points over the next three years and raise the corporate income tax rate to bridge the revenue gap. This will also negatively impact corporate competitiveness, but since the government has indicated that the hike will be temporary, retaining the HST is the best option for BC's economy.