this post was submitted on 12 Jul 2023
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The government has other levers on inflation that the BOC does not. If they were using them, there would be less pressure on the BOC to use their one lever. The government has a choice of levers that impact different people differently, and could help spread out the pain, like corporate tax rates, and passing laws that effect property tax calculations for investment properties.
Governments. Both federal and provincial governments can manage corporate tax rates, and both provincial and municipal governments can manage property tax rates.
But each of these governments serve the will of the people, and all three governments ultimately serve the very same people. Good luck convincing the people that they should willing choose to pay higher taxes.
Yes, I should absolutely be more precise. All levels of government have levers they can use here. Though, Municipalities are mostly just trying to keep their heads above water without having tent cities or crumbling roads. They don't have a lot of bandwidth to think about their effect on inflation. Certainly, the provincial governments have plenty of power to do something.