Finally, the Quebec and Canadian Pension Plans (QPP and CPP) which provide workers in Quebec and the rest of Canada with payments after retirement, finance by compulsory contributions form employees and their employers. .
There are also OTHER SPENDING PROGRAMS which provincial and territorial governments fund, these include the costs of health care, providing subsidies for post-secondary education (a reduce in tuition fees for students) and (with the help of municipalities) offer welfare services to single parent families with low incomes, individuals who are unable to find work due to disabilities, and families in crisis. Under the Canada Health and Social Transfer (CHST), the federal government pays for a portion of these costs by providing grants and personal income tax revenues to provincial and territorial governments. .
For the federal government, the most important category of expenditure is dept charges, which are interest payments on the government's own dept, followed by transfer payments to persons. The expenditure of provincial and local governments are more heavily weighted towards purchase of goods and services, although transfers to persons are also an important component of total provincial spending. .
There are five main types of taxation which Canadian governments pay for there spending; First PERSONAL INCOME TAXES, personal income taxes are collected by the federal government, proceeds being shared with the provinces and territories (except in Quebec and Alberta, where federal and provincial income taxes are collected separately). Households Pay taxes not only on their income from supplying resources but also on any transfer payments they receive. Households also pay income tax on capital gains, which are earnings from selling an asset, such as a bond or a piece of land at a higher price than it was purchased for. Households may be allowed a variety of deductions (such as contributions to registered retirement saving plans) that reduce the dollar amount on which they are taxed.
