Quote:
Originally Posted by Envitro
I don't see where it says that it' comes from Federal taxes. So Federal taxes, CPP/EI and all other Federal revenues are not included in this calculation as that is collected by the Feds anyway, the province has nothing to do with this activity.
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I think those items listed in your quote...
Personal income taxes
Business income taxes
Consumption taxes
Up to 50 percent of natural resource revenue (see below)
Property taxes and miscellaneous
...are not the source of federal transfer/equalization payments. They are all the ways in which a province generates its own income. If a province charges high business and personal taxes and still can not spend a decent amount on health care, then it gets more transferred from the feds to get their services at appropriate levels. This is because they do not have as much capacity to raise taxes to cover their expenses as a province that charges lower tax rates.
Again, not an expert. But that's what it looks like to me.