The food sector has never been recession-proof. But COVID-19 may show us that it’s immune to deflationary pressures
Despite a negative inflation rate overall, recent Statistics Canada numbers tell us we’re in for a wild ride at the grocery store. While the general inflation rate sits at -0.2 per cent, the food inflation rate is at 3.4 per cent. In December, Canada’s Food Price Report predicted a food inflation rate of about 4.0…
The notion that we can pile on debt ad infinitum is at the very least counterintuitive. In fact, it just seems reckless
Canada’s federal and provincial governments have rightfully focused on doing all they can to support people and businesses idled by the COVID-19 pandemic, and to keep people working where possible. But most advocates of aggressive spending always knew there would come a day of fiscal reckoning, in which we’d have to figure out how to…
An accounting expert offers a wealth of advice – starting with not letting your net worth define your self-worth
People struggling to pay their debts in a crippled COVID-19 economy can’t avoid tough choices but shouldn’t let it crush them, says a University of Alberta financial expert. Feelings of fear, frustration or shame can overwhelm the clear-headed thinking needed to tackle tough times, but try not to internalize it, advised Mike Maier, an accounting…
By Jake Fuss and Milagros Palacios The Fraser Institute Have you ever wondered how much you actually pay in taxes each year? While tax returns help us understand how much income tax we pay, it’s difficult for most Canadians to calculate their total tax bill. In Canada we pay many taxes to the federal, provincial…
By Aaron Wudrick and Franco Terrazzano Canadian Taxpayers Federation Prime Minister Justin Trudeau has chosen to make life more expensive for Canadians by increasing the federal carbon tax by 50 per cent amidst the COVID-19 economic and health crisis. Meanwhile, governments around the world are moving in the opposite direction because hiking taxes during a…
At the heart of the COVID-19 crisis sits the Canadian Mortgage and Housing Corp. and its low-income borrowers
The shutdowns ordered by Canadian governments to slow the spread of COVID-19 have caused unemployment to leap. And put mortgages in peril. Many of the millions of workers laid off have been low-income and lower-middle-income earners. They’re just the sort of people who qualify for home mortgages insured by the federal Canada Mortgage and Housing…
Whether on corporate income, labour, international trade or anything else, taxes in Canada impose a huge economic cost
As Canadians prepare their tax returns, it’s fair to ask if we get good value for all the taxes we pay. We have a little extra time to ponder this, since the federal government has given Canadians another month to file tax returns as a result of the COVID-19 pandemic, to June. 1. So do…
Hedge and private-equity funds, mortgage lenders, and money-market funds provide accessible sources of credit
By Paz Gómez Research associate Frontier Centre for Public Policy Shadow banking is growing by leaps and bounds in Canada. It’s a C$1.5-trillion industry that expanded by 30 per cent between 2015 and 2017, according to a recent Bank of Canada report. The banking establishment fears a challenge to its power, but consumers benefit from greater…
Although real estate is what economists call a 'lagging indicator', it appears that the first signs of a real slowdown are starting to be felt, especially in Canada's largest housing markets. After the initial response to news about the spread of Covid-19, which entailed drops in traffic on real estate platforms like Point2 Homes and…
Tax relief is instantaneous. Money is simply left in the hands of those who need it. There’s no application to be processed
As Canadians stay home to keep their communities safe in the midst of the coronavirus crisis, millions of people are out of work and countless businesses have closed their doors. It’s an unprecedented situation. Never before have governments deliberately put their economies into a coma in order to fight a health pandemic. And with the…
It’s tax season in our family medicine clinic. Seriously. You might think it’s coronavirus all the time in family practice these days. But, being family doctors, we see the full picture of health – what causes illness, what prevents it, and what keeps us happy and well. And that’s why we’re excitedly preparing for the…
An ETF is a low-cost mutual-like fund that trades on the stock market, with a significantly different fee structure
Exchange-traded funds (ETFs) seem to be all the rage. There are more than 600 ETFs traded on the Toronto Stock Exchange and it seems like new ones are being created almost every day. An ETF is basically a diversified investment pool that’s very similar to a mutual fund, with the exception that they’re sold or…
Each investor is unique in their goals and personal risk tolerance, so their investment portfolio should be customized to their situation
You worked hard for your money and, in turn, your money should be working hard for you. However, when comparing returns, you need to be sure you’re making a fair comparison. Investors often compare their returns to that of a published benchmark such as the Toronto Stock Exchange (TSX), or to the returns their friends…
Investors often purchase investments that don’t suit their intended time frame. Do your homework, know your risk tolerance and be clear on your expectations
When it comes to comparing your investment returns to others, make sure you’re comparing the exact period and investment transactions. Published returns for any investment are based on a single investment over a given period. This isn't the way most people invest, so their returns are often much different than the published numbers. The timing…
By Jake Fuss and Finn Poschmann The Fraser Institute According to a Parliamentary Budget Officer (PBO) report released this week, the federal government’s plan to increase the basic personal income tax deduction will cost nearly $7 billion annually when fully implemented. This is not only higher than what the Liberals anticipated during last fall’s election…