TAILIEUCHUNG - JOBS GROWTH AND LONG-TERM PROSPERITY ECONOMIC ACTION PLAN 2012

From a theoretic economic perspective, the effect of taxes on private saving is ambiguous. If taxes are reduced, the after-tax return on saving is larger; consequently, individuals may be able to maintain a target level of wealth and save less (wealth will grow due to the higher after-tax returns). This is the income effect and has lower taxes leading to less saving. However, the reduced after-tax return changes the relative price of consuming now (saving less) and future consumption (saving more) in favor of future consumption. This is the substitution effect and has lower taxes leading to more saving. The. | CANADA JOBS GROWTH AND Trnii PROSPERITY LONG-TERM PROSPERIIi ECONOMIC ACTION PLAN 2012 Tabled in the House of Common By the Honourable James M. Flaherty . . Minister of Finance March 29 2012 CANADA S ECONOMIC ACTIQN _L PLANy J Her Majesty the Queen in Right of Canada 2012 All rights reserved All requests for permission to reproduce this document or any part thereof shall be addressed to Public Works and Government Services Canada. Available through your local bookseller or by mail from Publishing and Depository Services Public Works and Government Services Canada Ottawa Ontario K1A 0S5 Telephone 613-941-5995 Orders only 1-800-635-7943 Canada and . Fax 613-954-5779 or 1-800-565-7757 Canada and . Internet http Cat. No. F1-23 3-2012E ISBN 978-0-660-20189-4 This document is also available n the Internet at Cette publication est aussi disponible en franpjis. Chapter 1 - Chapter 2 -Economic Developments and Global Economic Developments and Canada s Recent Economic Financial Market Commodity Canadian Economic Outlook Private Sector Risk Assessment and Planning Chapter 3 - Supporting Jobs and Growth - Supporting Jobs and - Supporting Entrepreneurs Innovators and World-Class Creating Value-Added Jobs Through Support for Research Education and Creating Value-Added Jobs Through Helping High-Growth Firms Access Risk Increasing Direct Support for Business Doubling the Industrial Research Assistance Supporting Innovative Businesses in Western Supporting Private and Public Sector Research Integrating High-Quality Researchers Into the Labour Strengthening Knowledge Transfer and Forestry Innovation and .

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