 |  Principles of Microeconomics, 1st Canadian Edition Robert H. Frank,
Cornell University
Ben S. Bernanke,
Princeton University
Lars Osberg,
Dalhousie University
Melvin Cross,
Dalhousie University
Brian MacLean,
Laurentian University
Public Goods and Taxation
Internet Questions| 1. | Lotteries are the source of very large income gains for select individuals in Canada. Since about 40% of lottery revenues go to governments, it is instructive to look at whether or not they provide big income gains for the government. Go to page 8 of Ontario's financial statements for the 2000-01 fiscal year which you will find at http://www.gov.on.ca/FIN/english/ofin012e.pdf, and answer the following questions.
- How large were Ontario's lottery revenues for the 2000-01 fiscal year?
- What percentage of Ontario's revenues does this income represent?
- How large were Ontario's revenues from personal income tax? provincial sales (retail)?
- According to your answers to the above, which type of tax (progressive, proportional or regressive) provides Ontario with the most and the least revenue?
See our suggested answer. |
| | 2. | In recent years, much has been made of the fact that Canadian taxes are higher than American taxes. Read the C.D. Howe Institute's Communiqué Create distinctive Canadian advantage with smarter programs and tax policies, says C.D. Howe Institute head (http://www.cdhowe.org/pdf/PressReleases/english/mintz%20nation-pr.pdf) and answer the following questions.
- The Institute is recommending "smart taxation." What does it say this taxation would be?
- Is the proposed taxation progressive, proportional or regressive? Explain.
See our suggested answer. |
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2003 McGraw-Hill Higher Education