This note presents an estimate of the fiscal impact of Bill C-241, An Act to amend the Excise Tax Act (school authorities).
Pursuant to a request from Mr. Pierre-Luc Dusseault, Member of Parliament for Sherbrooke, this note provides a cost estimate of Bill C-239: An Act to Amend the Income Tax Act (Charitable Benefits).
In response to a request from Senator Larry Smith, Chair of the Standing Senate Committee on National Finance, the Parliamentary Budget Officer (PBO) uses four methods to estimate the level of a hypothetical benefit available to taxpayers in the second tax bracket, where the overall cost of these benefits is equivalent in size to the estimated level of revenues generated from introducing a 33.0 per cent tax rate on income over $200,000.
In response to a request by a Member of Parliament, PBO has prepared estimates of the fiscal and economic impacts of the Budget 2016 decision to maintain the small business tax rate and corresponding effective dividend tax rate at 10.5 per cent. The rate had been legislated to gradually decrease to 9 per cent under Budget 2015.
PBO estimates that in 2013-14, total federal spending on postsecondary education reached $12.3 billion. Taking into account recent Budget 2016 announcements, PBO estimates total federal spending on postsecondary education will exceed $15.7 billion by 2020-21. Over the past ten years, federal postsecondary spending targeted towards human capital formation has disproportionately benefitted wealthier families. This was due to a growing share of federal support provided through the tax system in particular and Registered Education Savings Plans.
PBO looks at Canada’s commitment at COP21 in Paris and reports on its potential economic impact, both in aggregate and by sector. PBO estimates the reduction in emissions needed to achieve the 2030 target by combining historical trends in intensity of emissions with the PBO’s projection of the economy to 2030. We discuss how major sources of GHG emissions such as cars and trucks will have to be made at least a third more fuel-efficient, as will the electricity generation sector (almost two thirds), and oil & gas extraction (about a quarter), in order to meet the targets. The technologies to achieve those reductions are already available, but deploying them will lead to a mildly slower rate of income growth as cheap sources of energy will have to be replaced by moderately more expensive ones.
PBO estimates that the average annual cost to the Disaster Financial Assistance Arrangements (DFAA) due to weather events over the next five years is $902 million. Three-quarters of this cost is due to floods. The average annual cost for the previous five and 10 years had been $850 million $489 respectively. Over the past 10 years, weather events on the Prairies have been responsible for 81% of the DFAA costs.
The cost of a combat mission continues beyond the point at which the Canadian Armed Forces have withdrawn from the operational theatre. Arguably the most important post-combat cost is that of caring for Canada’s ill and injured Veterans. The intent of this analysis is to ensure that these post-combat costs come as no surprise to parliamentarians. This report does not incorporate any changes proposed by the new government.