Application de la théorie de la taxation optimale à l’impôt québécois
On December 8, Finance Minister Eric Girard will present an economic and fiscal update. Will the promises of tax cuts made during the recent election campaign materialize?
Any exercise to revise the tax system must balance the goals of redistributive justice and economic growth. In a context where the government wants to help taxpayers cope with inflation, but maintains its objectives of returning to a balanced budget, the choices are difficult.
In this report, Pier-André Bouchard St-Amant and his co-authors rely on the economic theory of optimal taxation and make recommendations for Quebec. Their analyses and simulations show that the priority should be lower effective marginal tax rates for taxpayers earning between $30,000 and $50,000. A zero-cost reform could imply an increase in the tax shield tax credit offset by an increase in tax rates for higher-income taxpayers.