ECON 241 Lecture Notes - Lecture 7: Potash, Land Values, Fax
20 Dec 2017
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Document Summary
1942 provincial (except que and onta) signed tax rented agreements with feds who make grants to provincial in amount of tax fiscal area. Provincial could choose taxes federal (as earlies) on payment that increase provincial compensation to standard. 1967 provincial decided to collect own taxes and signed with feds. Tax collection agreements feds collect all personal income tax (except que) + all corptax (except ont, que + alta) provided provincial agree to fed rate structure and base. Deductions tax all income x fed rates structure. Provincial problem is no control over tax structure and have revenue affected by all fed tax structure delta s. No ability to win tax system for other goals. 2001 feds + prov against feds collect personal + coup taxes (same exceptions) + grant prove freedom to structure their won rates + baskets, base. Provincial can use pit + cit to pursue other goals. 1982 principle of equalization enshrined in constitution.
