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Some provinces will oppose the Goods and Services Tax not only on the grounds of the tax's economic effects but also by claiming that is would be unconstitutional, would reduce their political room to manoeuvre and would adversely affect their own tax system. This paper examines the constitutional, political, and fiscal concerns that the proposed tax raises for the provinces that collect retail sales tax. It shows that some of the arguments they will try to use are invalid, while others remain to be proved.
This original study challenges the widely held belief that government policies to redistribute income have made Canada a more egalitarian state. The author bases his conclusions on extensive documentation of the real effect of changes in taxes, transfers, and government expenditures.