Quote:
Originally Posted by Cowboy89
If taken a step further hypothetically let's say the Federal government cut income taxes by 10%, but the province jacked up income taxes 10% at the same time. Would it be more reflective of the province's fiscal performance to say that they jacked up taxes by 10% or to net the two numbers and pretend that there wasn't a provincial tax increase at all because the net between the two is 0%?
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This is actually a very regular policy outcome. The Federal government has many times through the history of equalization transfered "tax points" to provinces as a way of giving jurisidictions more autonomy over spending.
I don't understand why this is a bad thing.