As Bev Dahlby’s essay points out, there are also economic costs to worry about. Efficiency costs occur when beneficial activity would have been undertaken, but tax rates and rules prevent or discourage it. Dahlby’s research shows that in every province, these indirect costs now exceed the direct cost of taxation, which is simply the money we transfer to the taxing government. His provincial-level estimates are striking. The cost of raising $1 of PIT revenue exceeds $2 in all provinces, while in Quebec it exceeds $3, in Newfoundland and Labrador $4, and in Ontario almost $7. Given these costs, projects financed with PIT revenues would have to exhibit benefits of more than $7 for every $1 spent on them in order to be justifiable. The list of such projects can’t be very long.