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The
Economic Freedom
Network

 

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Contents
July 1998

This Issue's Authors
Editor's Notes
Cover Stories:
It’s the High Marginal Tax Rates, Stupid!
by Fazil Mihlar
Social activists urge our governments to increase taxes on “high income” Canadians. But the top 30 percent of tax filers, who earn 54 percent of all the income in Canada, already pay 62 percent of all the taxes.
High Tax Rates Make Canada an Unattractive Place to Work
by Jon Kesselman
Cutting tax rates for upper earners poses obvious political difficulties, but the cost of imposing high marginal tax rates is large.
Growth and Government
by Walter Williams

A recent study shows that there’s a strong negative relationship between the size of government, increases in government expenditures, and economic growth.
At Last, an Earlier Tax Freedom Day in 1998!
by Joel Emes and Michael Walker

Canadians worked until June 26 this year to pay the total tax bill imposed on them by all levels of government. And that’s a three-day improvement!

Other Articles:

Regulatory Collusion and the Internet
by Mark Weller
The unregulated e-commerce environment is by no means guaranteed to continue. Govern- ments world-wide want a piece of the action.
The Market Modernization of Law in
South America

by Owen Lippert
Trade is expanding among South American countries. But are their legal and judicial systems up to the demands for dispute resolution services?
Helping Canadians Help Canadians:
The Finish Line or a Starting Gun?

by Jason Clemens and Johanna Francis
The intent of the recent Broadbent report is to bring a spirit of openness to the charitable sector. Does it work?

Paying the Doctor
by William McArthur, MD

In Canada there is an ongoing debate about the best way to pay our doctors. Here are some solutions.

July Graph
by Joel Emes
This graph shows provincial tax rates as a percent of the basic federal tax.

July Questions and Answers
by Joel Emes
The author answers questions about income tax on our pay stubs and how governments are able to meet their budget targets.

Culture, Collectivism, and Corruption
by Karen Selick
The author argues that cultures that emphasize individualism, entrepreneurship, realism, liberty, and private property are superior to cultures that emphasize collectivism, adherence to ancient ritual, mysticism, subjugation to the group, and communal property.

Institute News by Sherry Stein

Why are Politicians Regarded as Scum?
by Michael Walker
In the early 1960s public service was regarded as a high calling. What happened?

Learning From Our Mistakes
by David Gratzer
This reviewer criticizes the authors of a recent book who see Canadian health care as “a perfect system that offers patients quality, timely care, with no worries about cost.”

Smoking and Fiscal Externalities
by Filip Palda
Smokers put more of a burden on the health care system than they contributes in taxes, or so many believe. But there is a solution to this: in countries where government does not finance health care from a central tax pot, people must buy their health insurance directly. Insurance companies then charge smokers a premium for their habit.





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