Federal and Provincial Financial Agreements

Federal and Provincial Financial Agreements - Federal and...

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Federal and Provincial Financial Agreements Consistency with Economic Objectives o There are economic consequences when taxes are imposed o Taxes are used to control price increases and unemployment o Increase in tax leads to a decrease in spending o Governments can influence entire industries o Excise tax to discourage the purchase of air conditioners Marginal Tax Rates o The percentage of any additional income that is paid in taxes o Calculate by: (Difference in Taxes Paid) / (Difference in Income) o See page 118. Do questions 1-4 case study and answer in complete sentences Federal/Provincial Financial Agreements o Problem with the BNA act was that some provinces lacked in revenue sources o Federal government make annual payments to the provinces based on their population o There is a problem of overlapping taxes o The federal government gives a percentage on personal and corporate income and cash payments to provinces o Federal government makes equalization payments and stabilization
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This note was uploaded on 02/05/2011 for the course ECON 011 taught by Professor Yezer during the Fall '07 term at GWU.

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Federal and Provincial Financial Agreements - Federal and...

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