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Canada - economic aspects of the country's land use
American Journal of Economics and Sociology, The, Dec, 2000 by Garry B. Nixon
(44.) According to Charles Campbell, former vice chairman of the Canadian Immigration Appeal Board.
(45.) Although three western provinces have captured some of the rent via a government owned telephone monopoly, two provinces are in the process of privatizing this.
(46.) The power of the privileged can be seen in US Interior Secretary Babbitt's attempt to raise public land grazing fees, currently set at 1910 prices. The utter hypocrisy of the "conservatives" was witnessed in their fanatical opposition to his proposal. Free market bidding was apparently no longer a public good.
(47.) The almost freely granted US water licenses in desert areas (originally meant for the small farmer of 160 acres, but now the preserve of the large agri-businesses) is the most notorious example. But in Canada, water giveaways in more sparsely populated rural areas are substantial, especially considering the amount of water used in mining and pulp and paper production. Here the water is not only used, but abused: most of this polluted water is never treated.
(48.) "Other examples of types of land which escape most taxes are airport landing slots, tradable licenses, and any situation where there is a co-opting of a time-slot and thus monopolization of a natural resource." Peddle, in the letter cited.
(49.) Canada's policy differs from the US where certain airwaves are put up for bid. Recently however, President Clinton agreed to exempt radio and TV licenses from bidding, thereby costing the US treasury over $70 billion.
(50.) Apparently no one in power (and few academics) consider that these rents, if collected, might be spent on producing non-subsidized items, creating longer lasting jobs.
(51.) There are exemptions of 25 percent from income tax, plus provincial oil tax credits, low rates for family trusts, the aforementioned principal residence exemption, and a $500,000 exemption on the capital gains from the sale of a small Canadian corporation (including any and all real estate used in the business).
COPYRIGHT 2000 American Journal of Economics and Sociology, Inc.
COPYRIGHT 2001 Gale Group