O what is their argument o there is a policy

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o What is their argument o There Is a policy recommendation they want to support o Big picture you have to aware of o 1867 act the foundating , able to implement any mode of taxation Granted provinces direct taxations
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Legally a direct tax has a name on it Sales taxes are not direct taxes Store owner levies tax but not as direct as the taxes with my name on it The supreme court has implemented direct and indirect No border tax They do have regulations at the border that has a tax o The system has been fairly adapted despite rigid confines o We are interested in tax incidence, the economic may not have be the legal incidence o The federal transfers were originally fixed total sums or fixed dollar amounts per head o The fed still sends cheque that provinces receive o The federal government was an important player War Depression o The Fed had to bail provinces out o 1950: tax rental agreement Fed did most of the taxing Essentially fed did most of the taxation Eventually Qc re-established provincial authority, own taxes and more active in social policy o The constitution: provinces education and health responsibility o Most schools and hospitals charitable inst o After the war, in 1960s health becomes more important o The fed were players, but second half is more provinces o 1968, encouraged the other provinces to do what Sast had done o Partly done with conditional grants Run it with certain rules, we will give you money o You change the price of activities to the provinces, so you spend 50% less, so you buy more o 1973; pretty much all running medicare systems o In 1977: With fed in deficit, slow economy And expenditures under these programs expanding very rapidly We are going to stop 50c dollars Caused concern, you move to the EPF Now provinces get dollar not dollars you are spending It depends on population and GDP growth o 1957: equalization o 1984: health act No longer federal conditions experience with different building mechanisms
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Unconditional grant And other conditions o From the 80s on, fed difficult budget problems and trying to solve them Tightening policies Even if it kept rising o Government supplying provisional things o Help to think of local governments as the people providing the services o They are somewhat more local o Transfer payments o Division of labor of fed, provinces and territories o Might think of all the transfers being redistributed, receiving in kind services worth a certain amount o The formal redistribution at the federal level o PTL governments? o What happens to the green in the graph ( see report) o These were 2 separate programs, both blocked grants combined o Grants match GDP growth o Fed takes more corporate check red and blue graph o What do we get out of it: The discussion in the book is good Theories of federalism Why or why not have transfers Subsidiarity has a key feature Huge Eu but like things done at the local level
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