Finances of the Nation: Mitigating the Economic Impacts of Population Aging on Growth and Public Revenues—Can the Tax Mix Help?

Bertrand Achou, Yann Décarie, Luc Godbout, Pierre-Carl Michaud, Julien Navaux () and Suzie St-Cerny
Additional contact information
Bertrand Achou: HEC Montréal
Yann Décarie: HEC Montréal
Luc Godbout: Université de Sherbrooke
Julien Navaux: HEC Montréal and École des sciences de la gestion, Université du Québec à Montréal
Suzie St-Cerny: Université de Sherbrooke

Canadian Tax Journal, 2022, vol. 70, issue 4, 885-893

Abstract: In this article, the authors address concerns about the impact that the aging of Canada's population over the coming decades could have on economic growth and, consequently, growth in government revenues. They explore how revenue-neutral changes in the tax mix today could mitigate those concerns and raise more revenue than is projected in current forecasts with a status-quo scenario. Using data for Quebec, the authors show that a shift in the relative share of total revenues from personal income taxes to consumption taxes could be quite effective over the next four decades. A revenue-neutral shift equivalent to 1 percent of the province's consumption tax revenues today would result in an increase in revenues ranging between 0.3 percent and 1.0 percent by 2060, while a shift equivalent to 25 percent of consumption tax revenues would generate additional revenues of 1.4 percent to 4.8 percent.

Keywords: Tax revenues; personal income taxes; consumption taxes; population aging; tax mix; Quebec (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.ctf.ca/EN/Publications/CTJ_Contents/2022CTJ4.aspx (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ctf:journl:v:70:y:2022:i:4:p:885-893

Ordering information: This journal article can be ordered from
Canadian Tax Foundation, 145 Wellington Street West, Suite 1400, Toronto, Ontario, Canada M5J 1H8
https://www.ctf.ca/E ... ns_ListingBooks.aspx

DOI: 10.32721/ctj.2022.70.4.fon

Access Statistics for this article

Canadian Tax Journal is currently edited by Kim Brooks, Kevin Milligan, and Daniel Sandler

More articles in Canadian Tax Journal from Canadian Tax Foundation Canadian Tax Foundation, 145 Wellington Street West, Suite 1400, Toronto, Ontario, Canada M5J 1H8.
Bibliographic data for series maintained by Jim Lyons ().