Which of the following is an example of Canada's vertical fiscal gap?

Question

Quizplus · Accepted Answer

The vertical fiscal gap refers to the difference between the revenue-raising capacity of the federal government and that of the provincial governments. In Canada, the federal government has a much larger revenue-raising capacity than the provincial governments. This is because the federal government has the power to levy taxes on income, sales, and property, while the provincial governments can only levy taxes on sales and property. As a result, the federal government collects more revenue than the provincial governments.

Which of the Following Is an Example of Canada's Vertical