ECON 1B03 Chapter Notes - Chapter 12: Tax Rate, Canada Social Transfer, Deadweight Loss

• School: McMaster University
• Department: Economics
• Course: ECON 1B03
• Professor: Hannah Holmes

Document Summary

In this chapter we will primarily be talking about the canadian design of the tax system. Looking at data, we can see that governments have taken a larger and larger share of total income. As the economy"s income has grown, governments have grown even more. Canada has a federalist structure, which means poliical power is divided between the federal, provincial and territorial governments but the federal government remains most powerful (decided by. A more important aspect of our government is the role of transfers from the federal government to provinces and territories. The most important transfers are the canada social transfer (cst) and the canada. Another important feature is the role of equalizaion payments, which provide general-purpose transfers to some provinces. The federal government collects just under 40 percent of the taxes in our economy. It raises this money in a number of ways: The biggest source of revenue is personal income.