Nov. 8, 2023
Nov. 8, 2023
8, 2023
MacKenzie King (1935-1948)
Rowell-Sirois Commission
o Federal government had unlimited taxing authority, while the provinces had
fewer sources of revenue, undermining their responsibilities for their social
programs
o Premier John Bracken of Manitoba was a moderate, attending commission
meetings in Winnipeg, creating a detailed study of the problems around the
province, recommending:
Responsibility for employment insurance should be a federal
responsibility instead of provincial, as unemployment is a national
concern, coming to fruition in 1940
This was one of the few times all the provinces and federal
governments agreed on an issue and solution
Equalization payments are distributed between the provinces by the
federal government
Manitoba is a “have-not province” as it does not collect enough
revenue to sustain its own spending, whereas Alberta is “have
province”
The federal government collects taxes nationwide and refunds to
the poorer provinces, having higher tax rates in richer provinces
o Manitoba has $2.5 billion in equalization payments
annually
Not implemented until post-WW2, and having pushback by some
provinces for “paying too much”