The Federal Spending Power is now Chiefly for People, not Provinces
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Authors
Kent, Tom
Date
2007
Type
working paper
Language
en
Keyword
Spending Power Series 2007
Alternative Title
Abstract
What
is
different
between
the
two
orders
of
government
is
the
use
they
can
make
of
money.
A
province
is
limited
to
spending
on
its
own
activities.
It
may
impose “Direct
Taxation
within
the
Province
in
order
to
the
raising
of
a
Revenue
for
Provincial
Purposes”.
The
federal
Parliament,
by
contrast,
can
legislate
for
“The
raising
of
Money
by
any
Mode
or
System
of
Taxation”. There
is
no
restriction
of
purpose.
Ottawa
is
not
limited
to
spending
on
its
own
activities.
It
can
subsidise
provincial
governments.
It
can
provide
money
to
individuals
and
to
organizations
of
all
kinds,
on
such
terms
as
Parliament
legislates.
Pubic
spending
is
not
solely
the
writing
of
cheques.
It
includes
measures
that
forego
taxes
in
order
to
encourage
or
assist
people
in
defined
ways.
In
the
form
of
refundable
credits,
such
tax
expenditures
can
powerfully
redistribute
income
to
people
in
need.
Most
of
those
now
operative,
however,
have
a
different
motive.
Many
are
directed
to
business
activities.
Others
serve
purposes
as
diverse
as
subsidising
savings
for
retirement;
encouraging
charitable
giving
and
small
donations
to
political
parties;
helping
to
pay
for
health
care
not
covered
by provincial
programs
and
for
the
day
care
of
children
of
working
parents.
The
characteristic
common
to
many
of
these
measures
is
that
the
benefit
is
greater
the
higher
one’s
income.
Description
© IIGR, 2007
Citation
Publisher
Queen's University Institute of Intergovernmental Relations