1. Equalization payment
... bases. If a "have not" province increases the size of one of its revenue bases, it loses equalization entitlements in the amount of the change in the base times the national average tax rate. This decreases "have not" provinces' incentive to develop resources. A province's per capita equalization entitlement equals to the national tax rate multiplied by the difference of between province's ... own tax base and the average tax base. If the national tax rate increases, the entitlement of a "have not" province will increase and a "have" province will contribute more. Thus a "have not" prov...
- Word Count: 2179
- Approx Pages: 9
- Has Bibliography
- Grade Level: Undergraduate