I remain convinced that much of the federal cash flow is a self serving bit of politics and not an economics-driven or redistribution-agenda system delivering economic utility.
Ottawa is not taxing Fredericton or Kamloops to fund infrastructure in Ontario. Ontario is paying for that.... but having Ottawa do the taxation and then creating a political theatre where Premiers demand their "fair share" on behalf of their constituents, and federal politicians gain credit for distributing largesse to the masses, is just a game.
I would bet that a careful study would show that Ottawa does not redistribute wealth anywhere near as much as claimed - the money simply finds its way back to its place of origin.
My wisdom is that tax dollars are spent most effectively when the people who spend the money are the ones who face the taxpayer and justify the taxation. It's silly for a Premier (Ford is the classic example) to be claiming to "cut taxes" while demanding Ottawa fund things to a greater extent.
Like I say, the money Ford extracts from Ottawa is largely money he could raise himself, and if he did it would come out of the same sources, but with more transparency.
- Paul
