Changes

The average tax rate in Canada is higher than in the United States. In 2003, Canada's tax burden equals about 33.8% of GDP placing it in the middle of the G7 countries, with Japan lowest at 25.3% and France highest at 43.4% <ref>[http://www.fin.gc.ca/activty/faq1e.html#Taxation Department of Finance Canada: FAQs]</ref>. The US rate is roughly 25.6%; this discrepancy is consistent with the differing levels of social services which the governments funds. Canada also has managed to run without a budget deficit for a number of years.   

The average tax rate in Canada is higher than in the United States. In 2003, Canada's tax burden equals about 33.8% of GDP placing it in the middle of the G7 countries, with Japan lowest at 25.3% and France highest at 43.4% <ref>[http://www.fin.gc.ca/activty/faq1e.html#Taxation Department of Finance Canada: FAQs]</ref>. The US rate is roughly 25.6%; this discrepancy is consistent with the differing levels of social services which the governments funds. Canada also has managed to run without a budget deficit for a number of years.   

Equalization payments, worth 11.7 billion Canadian dollars are made by the federal government to the provinces from richer provinces (currently Alberta, Newfoundland<ref>[http://www.cbc.ca/canada/newfoundland-labrador/story/2008/11/03/have-not.html]</ref>,  and British Columbia) and the poorer provinces (Ontario, <ref>[http://www.cbc.ca/canada/story/2008/11/03/flaherty-ministers.html]</ref>, Nova Scotia, Prince Edward Island, New Brunswick, Quebec, Manitoba and Saskatchewan) .  This is to ensure that reasonably uniform standards of services and taxation are kept between the richer and poorer provinces.<ref>Budget 2007 [http://www.budget.gc.ca/2007/bp/bpc4e.html]</ref>  These payments have not been without controversy as provinces begin to make more revenues from natural resources they do not want to give up the Equalization payments.

Equalization payments, worth 11.7 billion Canadian dollars are made by the federal government to the provinces from richer provinces (currently Alberta, Newfoundland<ref>[http://www.cbc.ca/canada/newfoundland-labrador/story/2008/11/03/have-not.html]</ref>,  and British Columbia) and the poorer provinces (Ontario,<ref>[http://www.cbc.ca/canada/story/2008/11/03/flaherty-ministers.html]</ref> Nova Scotia, Prince Edward Island, New Brunswick, Quebec, Manitoba and Saskatchewan).  This is to ensure that reasonably uniform standards of services and taxation are kept between the richer and poorer provinces.<ref>Budget 2007 [http://www.budget.gc.ca/2007/bp/bpc4e.html]</ref>  These payments have not been without controversy as provinces begin to make more revenues from natural resources they do not want to give up the Equalization payments.

 

British Columbia has the lowest corporate tax rate in North America <ref>http://www.investbc.com/businessclimate.htm</ref>.

British Columbia’s combined federal and provincial corporate tax rate is lower than any jurisdiction in the United States.<ref name=tax>{{cite web|url=http://www.britishcolumbia.ca/Invest/Business-Climate/Pages/CompetitiveTaxClimate.aspx|title=Competitive Tax Climate|publisher=British Columbia|accessdate=Aug 12, 2012}}</ref> The BC corporate rate is 10% and the federal rate is 15%.<ref name=tax/>

Canada also has a national sales tax, the Goods and Services Tax (GST) of 5% on all purchases. Some provinces add an additional percentage in the form of a Provincial Sales Tax (PST), or a combined Harmonized Sales Tax (HST) combining GST and the Provincial Sales Tax. Based on actual income, and a number of other factors, the government will refund GST/HST to eligible tax payers in quarterly installments on the fifth of the month in July, October, January, and April.

Canada also has a national sales tax, the Goods and Services Tax (GST) of 5% on all purchases. Some provinces add an additional percentage in the form of a Provincial Sales Tax (PST), or a combined Harmonized Sales Tax (HST) combining GST and the Provincial Sales Tax. Based on actual income, and a number of other factors, the government will refund GST/HST to eligible tax payers in quarterly installments on the fifth of the month in July, October, January, and April.

In 1984, the Federal Government, under the leadership of the Liberals and The Right Honourable [[Pierre Trudeau|Pierre Elliot Trudeau]], enacted the Canada Health Act. This act was based on the five principles of "universality, accessibility, portability, comprehensiveness, and public administration"<ref>[http://www.fin.gc.ca/FEDPROV/hise.html History of Canada Health and Social Transfer]</ref>. This public health care system is run in partnership by Health Canada and provincial Ministries of Health, who both contribute tax revenues. The federal government sets policy, while the provinces are responsible for actual administration. In 1995, the Canada Health and Social Transfer was created to replace existing systems for the transferal of tax funding to the provinces to administer social programs. The rationale behind the system is to allow all Canadians equal access to equal treatment, regardless of socio-economic status.  

In 1984, the Federal Government, under the leadership of the Liberals and The Right Honourable [[Pierre Trudeau|Pierre Elliot Trudeau]], enacted the Canada Health Act. This act was based on the five principles of "universality, accessibility, portability, comprehensiveness, and public administration"<ref>[http://www.fin.gc.ca/FEDPROV/hise.html History of Canada Health and Social Transfer]</ref>. This public health care system is run in partnership by Health Canada and provincial Ministries of Health, who both contribute tax revenues. The federal government sets policy, while the provinces are responsible for actual administration. In 1995, the Canada Health and Social Transfer was created to replace existing systems for the transferal of tax funding to the provinces to administer social programs. The rationale behind the system is to allow all Canadians equal access to equal treatment, regardless of socio-economic status.  

In Canada health care is frequently listed as top issue in election campaigns and is both a topic of frequent debate and a point of pride for many Canadians, Tommy Douglas the founder of medicare was, for example, voted the "Greatest Canadian" on a CBC television programme in 2004 <ref>  

In Canada health care is frequently listed as top issue in election campaigns and is both a topic of frequent debate and a point of pride for many Canadians, Tommy Douglas the founder of medicare was, for example, voted the "Greatest Canadian" on a CBC television programme in 2004.<ref>  

http://www.cbc.ca/greatest/</ref>.

http://www.cbc.ca/greatest/</ref>

The current state of Canada's public health care system is gathering increasing media attention due to rising wait times. [[David Gratzer]] wrote:

The current state of Canada's public health care system is gathering increasing media attention due to rising wait times. [[David Gratzer]] wrote:

<blockquote>... government researchers have provided the best data on the doctor shortage, noting, for example, that more than 1.5 million Ontarians (or 12 percent of that province’s population) can’t find family physicians. <ref>[http://city-journal.org/html/17_3_canadian_healthcare.html The Ugly Truth about Canadian Healthcare] </ref></blockquote>

<blockquote>... government researchers have provided the best data on the doctor shortage, noting, for example, that more than 1.5 million Ontarians (or 12 percent of that province’s population) can’t find family physicians. <ref>[http://city-journal.org/html/17_3_canadian_healthcare.html The Ugly Truth about Canadian Healthcare] </ref></blockquote>

Most of the blame for the current state of affairs has been placed on successive government mismanagement. This represents a failure of the federal government to properly regulate the level of service being offered in the provinces. People regularly have to wait between four and eight months for surgeries. The median wait time for an MRI across Canada is 10.3 weeks in 2006.<ref>http://www.fraserinstitute.ca/shared/readmore.asp?sNav=nr&id=753</ref> In fact, former Prime Minister [[Jean Chretien|Jean Chrétien]] campaigned on a promise to shut down private MRI clinics because it creates a two tier system, regardless of the demand for more facilities.

Most of the blame for the current state of affairs has been placed on successive government mismanagement. This represents a failure of the federal government to properly regulate the level of service being offered in the provinces. People regularly have to wait between four and eight months for non-emergency surgeries. The median wait time for an MRI across Canada is 10.3 weeks in 2006.<ref>http://www.fraserinstitute.ca/shared/readmore.asp?sNav=nr&id=753</ref> In fact, former Prime Minister [[Jean Chretien|Jean Chrétien]] campaigned on a promise to shut down private MRI clinics because it creates a two tier system, regardless of the demand for more facilities.

In recent years, there has been suggestion from some lobby groups that Canada should adopt a two-tier health care system, while others have expressed strong opposition to this idea, including the federal government under the Liberal Party. Some argue that Canada already does have a two-tier health care system as the very wealthy can go to the United States for treatment. The argument for allowing private health care is twofold. The first reason is that competition may improve the quality of products and services, while the increase in options will allow those with the means to access private health care and may relieve some of the burden off the public system. Critics argue that health is a right, and that everyone should have access to the same standard of care.

In recent years, there has been suggestion from some lobby groups that Canada should adopt a two-tier health care system, while others have expressed strong opposition to this idea, including the federal government under the Liberal Party. Some argue that Canada already does have a two-tier health care system as the very wealthy can go to the United States for treatment. The argument for allowing private health care is twofold. The first reason is that competition may improve the quality of products and services, while the increase in options will allow those with the means to access private health care and may relieve some of the burden off the public system. Critics argue that health is a right, and that everyone should have access to the same standard of care.