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