PSCI331 Lecture Notes - Lecture 2: Social Union Framework Agreement, Fiscal Capacity, Cooperative Federalism

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Federalism: we are a federal state, divided power: sovereign power between two orders of government (naional and regional/provincial, 1 fed. Government, 10 provincial governments: this division is outlined in consituion; which grants each level some law making authority - neither is subordinate to each other since neither can supersede each other, federal: interest of all ciizens. Canada is massive so it is easier to make decisions separate; language is another barrier. Federal superior revenue raising power: direct (income tax) and indirect (taxes on goods) taxaion. Provinces many expensive responsibiliies: health care; educaion; social services (the most expensive, don"t have same revenue raising capability; now both are dependent on each other to achieve goals and objecives. Poliically independent (provinces depend on federal and vice versa) Always interacing on policies; complex network of f-p interacion. Fiscal relaions: how they relate to each other in terms of money and spending, federal government has superior resources; have federal spending power.

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