EXPANSIONS OF THE TAX IMPACT REPORT
Starting in Data Year 2021, the Tax Impact Report will include more detailed tax categories as well as estimates of tax impacts by level of government. The Tax Impact Report will also provide a summary table of General Government Total Tax Impacts, which is the summation of all tax impacts across all levels of government. The values in the General Governments Total Tax Impacts table should never be added to the values of the lower levels of government.
New tax categories include more detailed and disaggregated data related to Household (HH) taxes, Taxes on Products Net of Subsidies (TOPS), and Other Taxes on Production Net of Subsidies (OTXS):
- HH Tax: Wealth Transfer Taxes
- TOPS: Excise Taxes
- TOPS: Custom Import Duties
- TOPS: Trading Profits
- TOPS: Sales Taxes
- OTXS: Real Property Taxes
- OTXS: Licenses, Permits, and Fees
- OTXS: Payroll Taxes
- OTXS: Other Taxes on Production
Prior to Data Year 2021, the tax data for the above categories was included in the Tax Impact Report, however, it was reported at a more aggregate level.
Additionally, starting in Data Year 2021, all tax impacts will now also be reported for all levels of government separately, including:
- Federal
- Provincial and Territorial
- Local
- Indigenous
- Canada Pension Plan
- Quebec Pension Plan
Just as in the case of the added tax type detail, the values for each level of government were included in previous tax impacts but were reported as totals across all government levels.
The data source for the more detailed tax data is Statistics Canada’s Table 36-10-0450-01 Revenue, expenditure and budgetary balance- General governments, provincial and territorial economic accounts.
ADDITIONAL TRANSFER DATA WITHIN THE SAM
Starting in Data Year 2021, the Canada Provincial Social Accounting Matrices (SAMs) now include more detailed transfer data. Transfer payments represent the flow of funds between Institutions. Transfers often occur between Institutions and the Government, but not all transfers are paid to the Government or received from the Government. For example, in Data Year 2021, additional transfer data was incorporated between Households and Enterprises and Households and Non-Profit Institutions Serving Households. This data is reflected in Other Transfers (net). The data source for the more detailed Household (HH) transfers come from Statistics Canada’s Table 36-10-224-01 Household sector, current accounts, provincial and territorial.
Transfers that occur between a given Institution and the Government can take two forms. Taxes are a type of transfer payment whereby Institutions make requited payments to Government. In the SAM, the value of transfers between an Institution and the Government reflects aggregate payments to total General Governments. However, not all transfer payments from a given Institution to the Government are taxes. Current transfers are different from taxes in that they reflect payments to the government related to payments of fees for services rather than payments of taxes. New transfer payments between Households (HH) and Government reflected in the Data Year 2021 SAM include:
- Household (HH) Transfer: Health Insurance Premiums
- Household (HH) Transfer: Motor Vehicle Licenses and Registrations
- Household (HH) Transfer: Other transfers from HHs
Health Insurance Premiums reflect payments from Households for participation in provincial drug plans. Motor Vehicle Licenses and Registrations reflect payments from Households for motor vehicle licenses and registration. Other Transfers from Households consist of numerous items, on a province-by-province basis, for which the government is deemed to not be exercising a proper regulatory function and that payments are not out of proportion to the costs of providing the services. These data also come from Statistics Canada’s Table 36-10-0450-01 Revenue, expenditure and budgetary balance- General governments, provincial and territorial economic accounts.
MORE ACCURATE INDUCED EFFECTS
Prior to Data Year 2021, all income to producers (represented by Gross Mixed Income (GMI)), after removing Social Insurance contributions, went to Households as Household Incomes. Starting in Data Year 2021, IMPLAN is also removing Consumption of Fixed Capital (CFC) from GMI, such that Households will only receive the returns to owners who risked the capital by using it in production, or the Net Mixed Income. The remaining CFC is transferred to the Capital account. The prior inclusion of CFC as Household Income overstates Induced effects. The data source for this data comes from Statistics Canada’s Table 36-10-0221-01 Gross Domestic Product, income-based, provincial and territorial, annual.
INCORPORATION OF STATISTICS CANADA MARGIN DATA
Prior to Data Year 2021, commodity margin data for Canada Provincial were based on weighted averages from IMPLAN’s U.S.-based data bridged to the Canada Commodities. IMPLAN is now incorporating margin data from Statistics Canada’s National Symmetric Input-Output Table as well as Statistics Canada’s Annual Retail Survey, Annual Non-Store Retail Survey, and the Annual Wholesale Trade Survey.
NEWLY AVAILABLE FACTORS FOR CONVERTING BETWEEN EC AND WAGE & SALARY INCOME AND BETWEEN FTES AND WAGE & SALARY EMPLOYMENT
Prior to Data Year 2021, there were no Employee Compensation (EC) to Wage and Salary Income (WSIncome) and Full-Time Equivalent (FTE) per Total Employment conversion spreadsheets available for the Canada Provincial Product. We now have conversions by Industry and province. This differs from the U.S., where the conversions are only available at the national level.
The data for the Employee Compensation (EC) to Wage and Salary Income (WSIncome) conversion come from Statistics Canada’s Provincial Symmetric Input-Output Tables (IOTs).
The data from the FTE per Total Employment come from Statistics Canada’s Table 36-10-0676-01 Labour statistics consistent with the System of Provincial and Territorial Economic Accounts, by industry, job category, and work schedule (full-time or part-time). Please note that this data series from Statistics Canada is an experimental database and should be interpreted with caution.
NOW INCLUDING CANADIAN TERRITORIAL ENCLAVES ABROAD IN NATIONAL CANADA TOTAL
Starting in Data Year 2021, IMPLAN is including the Canadian Territorial Enclaves Abroad (CE) region in the national Canada totals. This region consists of Canada’s embassies and military bases abroad. The CE region only has two industries:
- 230- GS - Defence services
- 231- GS - Other federal government services (except defence)
The inclusion of the CE region will result in more accurate national Canada data, particularly for the Industries above. Although the data for the CE region is included in the national Canada totals, the CE region itself is not available as an individual region in the Canadian Provincial Product, thus it cannot be utilized as a region in a project.
Written January 7, 2025