Policy Forum: Building a Tax Review Body That Is Fit for Purpose--Reconciling the Tradeoffs Between Independence and Impact

In this brief opinion piece, I discuss various options for structuring and supporting a review of the federal tax system in Canada, including interactions with subnational tax measures. I focus in particular on the tradeoffs that must be made between independence from government and influence on government policy making. The traditional models that we are accustomed to thinking of--internal reviews by government officials, task forces, and royal commissions--all have strengths and weaknesses as mechanisms for conducting a comprehensive, transparent, independent, and influential review of the tax system. In addition to these options, I consider international examples, such as the United Kingdom's Mirrlees review. In the end, I suggest the creation of a publicly funded body with a standing mandate to conduct analysis, engage stakeholders, and make policy recommendations. Tax reform is unlikely to be a one-time policy need in Canada, and so we should build a tax review body fit for purpose.