Class Notes (839,327)
Canada (511,270)
POLS 205 (35)

Fiscal Federalism in Canada

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Political Studies
Course Code
POLS 205
Loleen Berdahl

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2011-03-08 POLS 205 Fiscal Federalism in Canada Why is fiscal federalism such a contentious issue in Canada? - Perhaps it’s because a divisive issue as provinces require different amounts of money, and can alienate people in other provinces. Goal achieve vertical fiscal balance - Vertical fiscal balance when both governments have enough revenue to carry out their responsibilities - The federal government usually has more money o We have a vertical fiscal imbalance - Direct TAXATION o Directly to corporations and/or consumers o Was not the biggest income source for the feds - Indirect taxation o Tariffs o Many economists have decided that sales tax should be considered indirect tax  Court challenges have resulted in the allowance of provincial
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