One of the purposes of equalization is to help federal government to reduce fiscally induced migration. Canada Health Transfer and Canada Social Transfer should be viewed as fiscal capacity grants to deal with horizontal fiscal imbalances. Higher tax on buyers of luxury furnitures is horizontally equitable because the buyers of these furniture are more likely to be rich.

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter16: The Public Sector
Section16.4: Public Choice Theory
Problem 1YTE
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One of the purposes of equalization is to help federal government to reduce fiscally induced
migration.
Canada Health Transfer and Canada Social Transfer should be viewed as fiscal capacity
grants to deal with horizontal fiscal imbalances.
Higher tax on buyers of luxury furnitures is horizontally equitable because the buyers of
these furniture are more likely to be rich.
Transcribed Image Text:One of the purposes of equalization is to help federal government to reduce fiscally induced migration. Canada Health Transfer and Canada Social Transfer should be viewed as fiscal capacity grants to deal with horizontal fiscal imbalances. Higher tax on buyers of luxury furnitures is horizontally equitable because the buyers of these furniture are more likely to be rich.
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