Look at the list of costs.
One, let's say we spend $7 billion on corporate subsidies. That's $7 billion that had to be taken out of the economy in the first place; taken from entrepreneurs, consumers and workers in the form of taxation. What would have been the benefit of leaving that money in the economy in the first place?
Two, you have the administrative costs. Effectively, we have businesses that send money to CRA. Then the money goes from CRA to the industry department. Then the businesses have to hire a consultant to apply to get a subsidy back. Then the bureaucrats at the industry department have to review that application. Then the business has to hire a lobbyist to go and lobby for some of the money back. Then after some time and delay, the government decides it's going to provide the subsidy, and so the business gets some of the money back that it paid in taxes in the first place. All of that administrative cost is inculcated into the system.
Then as I said earlier, you have the cost to the competitor, who has to pay taxes so that his competition can get a subsidy from the government.
None of these costs ever come out when politicians release communications products at the cheque-writing ceremony.
Dr. Mintz, do you have any idea of how we could calculate these real costs so that we can do a real cost-benefit analysis?