Kenneth J. McKenzie (University of Calgary, Department of Economics) has posted Giving with One Hand, Taking Away with the Other: Canada’s Tax System and Research and Development on the C.D. Howe Institute web site. Here is the abstract:
Canada’s generous subsidies for R&D, combined with relatively high taxes on the fruits of innovative activity, might not be serving the country well. If the goal is to generate more R&D activity and the innovative investment that surrounds it, an improved tax environment for business investment, rather than larger R&D subsidies, would be the correct policy prescription.
