It excludes “structural items” that are included in the Department of Finance’s table of tax expenditures, such as the credit for the Basic Personal Amount, and the transfer of tax points to the provinces. [...] The methodology to do so that “tax expenditures are often the outcome already exists in research that describes how an of the poorly informed few legislating for the overall index of income tax progressivity can be less informed many in circumstances where the constructed for a country.10 Using that framework, accountability of legislators is severely impeded.”8 the tax expenditures report ought t [...] One of the strongest arguments for a lower rate Therefore, much of the cost of the corporate tax of taxation on capital gains applies to assets held is passed on by corporations to either employees for a long period of time. [...] Schedule 3 in capital gains that is due the T1 tax return already requires the taxpayer to fill in the year of acquisition of the capital asset to inflation and then tax whose disposition is being reported. [...] The of the Income Tax Act to define taxable capital seller of the short-term asset is seriously over- gains to include only real gains: compensated, while the seller of the long-term asset may be under-compensated.