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My latest Economy Lab post

The corporate tax implications of each of the parties’ greenhouse gas (GHG) policy proposals will run in the billions of dollars per year. GHG policies will induce significant expenditures, whether they follow the regulatory approach proposed by the Conservatives, the cap-and-trade approaches proposed by the Liberals and the NDP, or the broad carbon pricing approach of the Green Party.

These new expenditures will be deductible in calculating corporate taxes paid to Provincial and Federal governments, and in some cases from provincial resource royalties. None of the parties seems to have accounted for this, which likely leaves multi-billion dollar gaps in each of their budgets.

Read more here.

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