Skip to main content Accessibility help
×
Home
  • Get access
    Check if you have access via personal or institutional login
  • Cited by 12
  • Print publication year: 2006
  • Online publication date: July 2009

5 - Changing with the Times: Success, Failure, and Inertia in Canadian Federal Arrangements, 1945–2002

Summary

Canada is one of the oldest and, from most perspectives, one of the most successful federal countries in the world. But success has not come easily. Over the 135 years of its existence, Canada has changed in many ways. As the decades rolled by, its territory expanded greatly, the number of provinces (and territories) included in the union grew, its degree of political independence from Britain increased, and, from 1976 to 1985 and from 1994 to 2003, a political party whose explicit objective is separation of one of its provinces gained control of a major province while at the same time Canada's degree of economic dependence on the United States rose to new levels. These and other major changes in the nature of both the country and its environment have required equally major changes in the institutions of Canadian federalism. The union continues to endure, but not without a good deal of effort and not without continuing pressures and strains.

We examine three aspects of Canada's federal arrangements over the past half century. The marked change that has taken place in the sharing of the personal income tax between the federal and the provincial governments is a success story: Successful changes were gradually made over time to accommodate new economic and political circumstances. The unsuccessful attempt to amend the Constitution Act of 1982 to satisfy the demands of Québec, the majority francophone province in Canada, was a failure in spite of great political effort.

Related content

Powered by UNSILO
Bibliography
Anisman P., and P. W. Hogg (1979). “Constitutional Aspects of Federal Securities Legislation,” in Proposals for a Securities Market Law for Canada, Background Papers, vol. 3, pp. 135–200. Ottawa: Minister of Supply and Services.
Banwell, P. T. (1969). “Proposals for a National Securities Commission,” Queen's Intramural Law Journal 1(3): 3–35.
Beaulieu, M. C., and Bellemare, G. (2000). “Canadian Stock Market and North American Integration” Isuma 1(1). Available online at http://www.isuma.net/vo/n01/beaulieu/beaulieu-e.shtml
Bird, R. M. (1970a). The Growth of Government Spending in Canada. Toronto: Canadian Tax Foundation.
Bird, R. M. (1970b). “The Tax Kaleidoscope: Perspectives on Tax Reform in Canada,” Canadian Tax Journal 18: 444–478.
Bird, R. M. (1978). “Canada's Vanishing Death Taxes,” Osgoode Hall Law Journal 16: 133–145.
Bird, R. M. (1979). Financing Canadian Government: A Quantitative OverviewToronto: Canadian Tax Foundation.
Bird, R. M. (1986). Federal Finance in Comparative Perspective. Toronto: Canadian Tax Foundation.
Bird, R. M. (2000). “Rethinking Subnational Taxes: A New Look at Tax Assignment,” Tax Notes International 20 (19): 2069–96.
Bird, R. M., and Gendron, P.-P. (1998). “Dual VATs and Cross-Border Trade: Two Problems, One Solution?,” International Tax and Public Finance 5 (3): 429–442.
Bird, R. M., and , K. J. McKenzie (2001). Taxing Business: A Provincial Affair? Commentary No. 154. Toronto: C.D. Howe Institute.
Bird, R. M., and Tassonyi, A. (2001). “Constraints on Provincial and Municipal Borrowing in Canada: Markets, Rules, and Norms,” Canadian Public Administration, 44 (1): 84–109.
Bird, R. M., and Vaillancourt, F. (2001). “Fiscal Arrangements for Maintaining an Effective State in CanadaEnvironment and Planning C: Government and Policy 19(2): 163–187.
Bird, R. M., D. B. Perry, and T. A. Wilson (1998). “Canada,” in Messere, K., ed., Tax Systems in Industrialized Countries pp. 39–92. London: Oxford University Press.
Boadway, R., and Hobson, P. (1998). Equalization: Its Contribution to Canada's Economic and Fiscal ProgressKingston: John Deustch Institute.
Breton, A. (1996). Competitive Governments.Cambridge, UK: Cambridge University Press.
Burns, R. M. (1980). The Acceptable Mean: The Tax Rental Agreements, 1941–62.Toronto: Canadian Tax Foundation.
Canadian Tax Foundation (1999). Finances of the Nation 1999. Toronto: Canadian Tax Foundation.
Courchene, T. J. (1986). Economic Management and the Division of Powers.Toronto: University of Toronto Press for Royal Commission on the Economic Union and Development Prospects for Canada (McDonald Comission).
Dufour, C. (2002). Restoring the Federal Principle: The Place of Québec in the Canadian Social Union, Policy Matters, vol. 3, no. 1, IRPP.
Durocher, R. (1996). “Quiet Revolution,” in Canadian Encyclopedia Plus.Toronto: McClelland and Stewart. CD-Rom
Erard, B., and F. Vaillancourt (1993). “The Compliance Costs of a Separate Personal Income Tax system for Ontario: Simulations for 1991,” in Maslove, A., ed., Taxation in a Subnational Jurisdiction, pp. 137–170. Toronto: University from Toronto Press (Fair Tax Commission).
Granatstein, J. L. (1975). Canada's War: The Politics of the Mackenzie King Government, 1939–1945.Toronto: Oxford University Press.
Lachance, R., and F. Vaillancourt (2001). “Québec's Tax on Income: Evolution, Status and Evaluation,” in Brown, Douglas, ed., Tax Competition and the Fiscal Union: Balancing Competition and Harmonization in Canada, pp. 39–47. Kingston: Institute of Intergovernmental Relations.
Lindblom, C. E. (1968). The Policy-Making Process. Englewood Cliffs, NJ: Prentice-Hall.
McRoberts, K. (1988). Québec: Social Change and Political Crisis, 3rd edition. Toronto: McClelland and Stewart.
Meisel, J., and Rocher, G. (1999). Si je me souviens bien/As I recall: Regards sur l'histoire.Montreal: L'Institut de Recherche en Politiques Publiques.
Mintz, J., and Smart, M. (2002). “Why Québec's Tax-Point Transfers Are a Good Idea,” The National Post, March 25.
Mohindra, N. (2002). Securities Market Regulations in Canada. Vancouver: Fraser Institute Critical Issues Bulletin.
Moore, A. M., Perry, J. H., and Beach, D. I. (1966). The Financing of Canadian Federation: The First Hundred Years. Toronto: Canadian Tax Foundation.
Ontario Economic Council (1983). A Separate Personal Income Tax for Ontario. Toronto: Ontario Economic Council.
Ontario Securities Commission LLP (2002). Five Year Review Committee Draft Report Reviewing the Securities Act.
Perry, D. B. (1977). Financing the Canadian Federation, 1867–1995: Setting the Stage for Change. Toronto: Canadian Tax Foundation.
Perry, J. H. (1989). A Fiscal History of Canada – The Postwar Years. Toronto: Canadian Tax Foundation.
Popper, K. (1957). The Poverty of Historicism. London: Routledge & Kegan Paul.
Porter Commission (1966). Report of the Royal Commission on Banking and Finance (Ottawa).
Richards, J. (2002). The Paradox of the Social Union Framework Agreement, Backgrounder No. 59. Toronto: C.D. Howe Research Institute.
Russell, P. H. (1993). Constitutional Odyssey: Can Canadians Become a Sovereign People?Toronto: University of Toronto Press.
Séguin Commission (2002). Commission on Fiscal Imbalance, A New Division of Canada's Financial Resources (Québec).
Simeon, R. (1978). Federal-Provincial Diplomacy. Toronto: University of Toronto Press.
Simon, H. (1956). Administrative Behavior, 2nd edition. New York: The Free Press.
Smith, E. H. (1998). Federal-Provincial Tax Sharing and Centralized Tax Collection in Canada, Special Studies in Taxation and Public Finance No. 1. Toronto: Canadian Tax Foundation.
Tindal, C. R., and Tindal, S. N. (2000). Local Government in Canada, 5th edition. Scarborough, ON: Nelson Thomson Learning.
Trebilcock, M., and Schwanen, D., eds. (1995). Getting There: An Assessment of the Agreement on Internal Trade. Toronto: C.D. Howe Institute.
Trebilcock, M., Pritchard, J., Whalley, J., and Courchene, T. (1983). Federalism and the Canadian Economic Union. Toronto: University of Toronto Press.
Tse, D. (1994). “Establishing a Federal Securities Commission,” Saskatchewan Law Review 58 (1): 427–440.
Turgeon, M., and Vaillancourt, F. (2002). “The Provision of Highways in Canada and the Federal Government,” Publius 32(1): 161–180.
Vaillancourt, F. (1996). “Language and Socioeconomic Status in Québec: Measurement, Findings, Determinants and Policy Costs,” International Journal of the Sociology of Language, Special Issue on Economic Approaches to Language and Language Planning, 121: 69–92.
Vaillancourt, F. (1997). “Labour Sponsored Venture Capital Funds in Canada: Institutional Aspects Tax Expenditures and Employment Creation”, in Halpern, P., ed., Financing Growth in Canada, pp. 571–592. Calgary: University of Calgary Press (Industry Canada).
Vaillancourt, F. (2000a). “Federal-Provincial Small Transfer Programs in Canada, 1957–1998: Importance, Composition and Evaluation,” in Lazar, H., ed., Canada: The State of the Federation 1999/2000, pp. 189–212. Kingston: IIGR, Queen's University.
Vaillancourt, F. (2000b). “The Québec Pension Plan,” in P, Boothe, ed., A Separate Pension Plan for Alberta, pp. 23–40 Western Studies in Economic Policy No. 5. Edmonton: Institute for Public Economics, University of Alberta Press.
Vaillancourt, F., and Rault, S. (2003). “The Regional Dimension of Federal Intergovernmental and Interpersonal Transfers in Canada, 1981–2001,” Regional and Federal Studies 13(4): 130–152.
Vander Ploeg, C. (2000). Canadian Intergovernmental Agreements on Immigration, Background Paper 2, A National Conference on Canadian Immigration, Canada West Foundation.
Weingast, B. (1995). “The Economic Role of Political Institutions: Market-Preserving Federalism,” Journal of Law, Economics, and Organization 11: 1–31.