POLI 371 Study Guide - Final Guide: Federation Of Australia, Canadian Federalism, Provincial Rights Party

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In this chapter they argue that the (changing) nature of the party system plays an important role in the fluctuating degree of centralization and decentralization in a federation. Compares australia (very centralized) to canada (decentralized) The design of federations face a multitude of choices as they endeavor to create a central government that is simultaneously strong and limited while striking a balance between centrifugal and centripetal forces. Australian states have no direct access to income, corporate, or general sales taxes, and they rely extensively on grants from the commonwealth government. The canadian provinces in contrast can access essentially the same taxes as the federal government, from personal income taxes and corporate taxes to social insurance and sales taxes. For example, australian states generate only the equivalent of 4. 6% in gdp from taxes of which they have full discretion, while canadian provinces generate the equivalent of.