POL224Y1 Chapter Notes - Chapter 5: Canadian Federalism, A Priori And A Posteriori, Direct Tax
Document Summary
Federal has control over indirect and direct taxation. Provinces rely on federal subsidies, licences, natural resources. Could reserve provincial legislation, then disallow or take control of subordinate. Provinces represented by population, but regions were equal. Parliament allowed to unilaterally amend constitution under federal issues. Before 1949, judicial committee of the privy council was the final court of appeal --> changed system from centralized to decentralized. Divided among peace order, good governance gave residual to federal states. More federal cases contested than provincial --> fragmentation and decentralization. Federal could levy any lax while provincial only had direct taxation. Provinces lobbied for increased grants from federal, had debts paid, made far more from natural resources than predicted. Levied direct taxes they were not expected to use --> increased financial power of provinces. Before 1940, 2 levels operated independently --> messy, uncoordinated. Block-grant given for these operating costs without conditions. Shared-cost programs: conditions set, then money given (healthcare)
