The Design of the Tax System
12
Copyright © 2006 Nelson, a division of Thomson Canada Ltd.
Learning Objectives
●Get an overview of how the Canadian government raises and spends money ●Examine the efficiency costs of taxes ●Learn alternative ways to judge the equity of a tax system ●See why studying tax incidence is crucial for evaluating tax equity ●Consider the tradeoff between efficiency and equity in the design of a tax system
Copyright © 2006 Nelson, a division of Thomson Canada Ltd.
The Federal Government
Spending ●Federal spending goes to interest on the debt and program spending
Table 4 Federal Governments Spending, 2002-2003 2002-
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The Federal Government