In the past 25 years, we've also witnessed lower variability in the output gap - the difference between actual output and the economy's capacity to produce in a sustainable fashion - and in the unemployment rate. Overall, the business cycle appears to have become less pronounced and, since 1991, Canada has avoided a recession. What's been driving this reduction in the variability of output?
This is possible given the scope for enlargement of tax base, removal of exemptions and further strengthening of tax administration. The existing tax regime collects almost 68% of taxes from manufacturing and corporate sector, while agriculture and services sectors (aside from banks) are exempt and some segments of the economy are outside the tax net. BIS Review 33/2008  5  ii.