ECON 241 Lecture Notes - Lecture 6: Canada Health Act, Canada Health Transfer, Canada Social Transfer
Document Summary
Pse -50/50 cost sharing-partly cash transfer + partly tax points. Welfare -50/50 cost sharing cash transfer (cap) 50/50 cost sharing means provs decide on spending level, and feds contribute. Feds have no certainty as to $ amount transferred. Roles governing how $ spent limit prov- control welfare need/residency health- only spend on certain things. Pse + health combined in new transfer named establish programs financing (epf) unconditional grant tied to last year of 50/50 cost sharing. Now transfer to provs 13. 5% points of pit +1% of cti fed decreases tax, provs increases tax by same amount. Value of one tax point will increases over time as tax base increases with growth. Epf grows as tax base + value of tax point grows + tax growth at gdp growth total transfer =cash + tax points. 1982 epf fed effects to fight deficit mean unilaterally change rule on growth.