POL214Y1 Lecture Notes - Lecture 6: Territorial Formula Financing, Fiscal Gap, Asymmetric Federalism
22 Dec 2017
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Refers to the federal transfer of money or tax points directly to individuals, organizations, or subnational (even local) governments in areas that may not fall under federal jurisdiction. 91(1a) legislate on matters related to public property. 106 appropriate federal funds for public services. Before confederation: provinces went into debt to build infrastructure. 99% of tax revenue => import and excise taxes. Provinces were given subsidies to cover justice, education, welfare, and internal transport. 1919 excise and custom duties were 78% of taxes. 1912-1930 federal government used conditional grants to fund provincial employments, highways, some education, old age pensions, disease prevention and social assistance. Provinces (especially quebec) have opposed the federal governments expansion of taxation and provision powers. Tax revenues have moved from excise and import to income, payroll and sales tax. All new federal taxes originate in the house of commons and are passed up to the senate. Constitution act limits provinces to direct taxation.
