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Fiscal Imbalance Talk is Hooey

What is the solution to the "fiscal imbalance?" How about stop talking about it and move on. A simple reading of the Constitution reveals a drastic imbalance in the way the country was designed; Parliament was given the major powers of taxation and fiscal levers. The provinces were not, and nothing has changed to address that, except for an equalization scheme which transfers from the rich to the poor provinces.

The Premiers whine on about it. They want more money - more power, of course. Perhaps they should read our founding document:

CONSTITUTION ACT 1867 --
DIVISION OF POWERS

FEDS
91 (1A) The Public Debt and Property.

(2) The Regulation of Trade and Commerce.

(3) The Raising of Money by any Mode or System of Taxation.

(14) Currency and Coinage

(15) Banking, Incorporation of Banks, and the Issue of Paper Money

(16) Savings Banks

(17) Weights and Measures

(18) Bills of Exchange and Promissory Notes

(19) Interest

(20) Legal Tender

(21) Bankruptcy and Insolvency


PROVINCES
92 (2) Direct Taxation within the Province in order to the raising of a Revenue for Provincial Purposes.

What an imbalance!

It would appear that anyone who wants to change the way fiscal federalism runs in Canada ought to get on the boat to Charlottetown like Sir John A did to re-write the Constitution. Or if they are whining Premiers, go for the job with the real fiscal controls in Ottawa.

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