Tag Archives: tax reform

No Silver Bullet For Canada Productivity Problems

Our friends at thinktank C.D. Howe Institute have released a series of recommendations to boost Canada’s productivity.

October, 2026 – Canada needs coordinated reforms across multiple policy areas to address its longstanding productivity problem, according to the C.D. Howe Institute’s Productivity Blueprint, released today with recommendations for policymakers across different sectors and levels of government.

Canadians’ living standards have fallen behind those of other advanced economies.

From 2014 to 2024, real GDP per capita, a common measure of living standards, grew just 3.5 percent in Canada, the slowest among nine peer countries and far behind the United States, where it grew 20.2 percent.

Eight Key Policy Areas Needing Attention

Drawing on decades of non-partisan, peer-reviewed research, the Productivity Blueprint identifies eight policy areas that, together, can drive stronger investment, higher productivity, and better living standards for Canadians: tax reform and competitiveness; regulation; competition; human capital; innovation and commercialization; business growth; trade, transportation and supply chains; and fiscal policy and government productivity.

The Blueprint offers specific recommendations in each area.

On tax policy, for example, the Blueprint proposes cutting personal income tax brackets from five to three, replacing most credits and deductions with a $10,000 allowance, and lowering the general corporate tax rate to 10 percent. Past Institute work suggests these changes would unlock $140 billion in new business investment and add 2.5 percent to GDP.

But tax reform alone won’t close the gap. Weak competition in key sectors, low business spending on research and development, skilled newcomers working below their qualifications, and strained public budgets also hold productivity back.

Governments must address all eight policy areas together to make meaningful progress.

“The federal government has made some positive moves to address productivity growth, like the proposed Productivity Mega Deduction, the Major Projects Office, and Bill C-39. But there’s no quick fix for productivity,” says C.D. Howe Institute President and CEO Jeremy Kronick. “Real progress will take reform across many areas of policy at once, and the Blueprint provides a ready-made set of recommendations to achieve that goal.”

The Number One Priority

“If Canadians want stronger wages and living standards over the long term, raising productivity needs to be Canada’s number one priority,” says Kronick.

The full Blueprint is available at cdhowe.org.

For the Silo, Jarrod Barker.

Green Party of Ontario offers ‘big ticket savings’ Budget eg: One School System

Though some provinces provide a variation of funding to independent, religious schools, Ontario is the only province to exclusively fund a Catholic school system for its students.

“Ontario’s financial future is at risk, and Premier McGuinty lacks the will to make the hard, long-term decisions we need,” says GPO Finance critic Kevin O’Donnell. “He’s already passed over obvious, big ticket savings. In contrast, our budget priorities don’t shy away from the realities facing Ontarians.”

The GPO believes eliminating the deficit requires challenging the status quo in the province’s biggest budget categories: education, energy, health care, and bringing our tax system into the 21st century.
ONE SCHOOL SYSTEM: The GPO believes there is a better solution than laying off thousands of critical classroom aids and blocking students who need a fifth year to get help. The Liberal government should do the obvious — eliminate massive and costly duplication by merging the best of the Catholic and public school systems into a one French/English public system. The result benefits everyone –a high quality, financially responsible, and equitable education system.

STOP BORROWING BILLIONS TO SUBSIDIZE WASTEFUL ENERGY CONSUMPTION: Ontario cannot afford to borrow $1.2 billion to subsidize pollution and electricity bills with the misleadingly named ‘Clean Energy Benefit’. Instead, we should help lower-income families with the rising cost of living by raising the Ontario Child Benefit as planned at a much lower cost of $90 million. It makes more sense to help businesses and households save money by increasing energy efficiency — a strategy that’s cheaper, stimulates job creation and ultimately boosts government revenue. The government must not cave in to the NDP/Conservative HST Coalition that would borrow more money to subsidize pollution.

INVEST IN ILLNESS PREVENTION: Ontario’s current “sick care” system focused predominantly on hospital treatment is unsustainable. We need to invest more in illness prevention within home and community care settings. This budget must commit at least .5% of healthcare spending to prevention, raise taxes on cigarettes and commit 2% of the transportation budget to infrastructure for human powered mobility — serving both our community health and environmental objectives.

EFFICIENT AND FAIR TAX REFORM: The GPO calls for the elimination of unsustainable corporate tax cuts and a commitment to forming a public commission on the reform and modernization of Ontario’s tax system. We support a tax system that generates the funds necessary for required public services while creating jobs that enrich our natural wealth and our communities.

“It’s time for politicians to stop punting problems to our kids,” says GPO leader Mike Schreiner. “Now is the time to put politics aside and tackle head on these big ticket items in order to balance the books efficiently and fairly.”

CONTACT: Jaymini Bhikha Cell: 416-275-8573 Office: 416-977-7476 jbhikha@gpo.ca
Green Party of Ontario PO Box 1132 Toronto, ON M4Y 2T8 Canada