With Quebec’s new provincial budget coming soon, it is worth questioning the nature and effectiveness of tax measures applied by the government. As usual, the budget is sure to contain a series of new tax measures aimed at meeting various political goals. Our elected representatives may need reminding that intentions and results do not always coincide: caution is called for when government actions rely on tinkering with taxation.

Quebecers’ tax burden.

On December 14, 2006, the Quebec government and Alcan unveiled an agreement for building an aluminum smelter in the Saguenay–Lac-Saint- Jean region. The smelter is to have an annual production capacity of 450,000 tonnes and to use the new AP50 electrolysis technology under development, intended to cut electricity use by about 20% per tonne of aluminum produced. The purpose of this Economic Note is to measure the cost to Quebec society of the government contribution to this project and to see if it is justified in relation to the expected benefits.

Elections 2007: politicians’ promises.

The Audet budget and tax reductions.

The cost of politicians’ promises.

Are we too much in debt? Are we saving sufficiently?

Publication of an Economic Note on the negative effects the tax load has on the Canadian airline industry.

Publication of an Economic Note on the negative effects the tax load has on the Canadian airline industry.

The airline industry has gone through plenty of turbulence over the last few years. Following a period of crisis caused by an economic slowdown in the United States and amplified by the attacks of 9/11, the SARS epidemic and the war in Iraq, air traffic began growing again in 2004. The airline sector remains fragile, however, and a jump in oil prices or new terrorist attacks could set things back again. Moreover, the high tax burden that Canadian air carriers are forced to bear compared to their U.S. rivals threatens their competitive position in a context of growing liberalization of airline markets.