Income tax reform has become a hot topic in both the United States and Canada. Over the past few years, a variety of proposals have been advanced for the replacement of the current income tax system and most proposals involve a compression of the multi-rate structure into a single rate and a...

This study develops local and global indices to measure interregional redistribution. The local indices compare federal revenues and expenditures assigned to various regions with the pattern of income disparities among regions. They are developed by relating these comparisons under a given...

Economy Context Technological changes, along with the globalization of markets, are transforming industrial countries into knowledge-driven economies. This shift has made human capital one of the leading public policy themes. However, existing measures of investment do not allow policymakers to...

In April 1989, the federal Minister of Finance announced plans to implement the Goods and Services Tax (GST), an invoice- based value-added tax, as a replacement for the present Manufacturers' Sales Tax (MST). One of the stated reasons for this change was the concern about the regressivity of...

This paper discusses the methodology for the calculation of federal fiscal flows in a federation and the measurement of interregional redistribution. It identifies five major steps: (a) the selection of the approach for calculating federal fiscal flows, (b)the allocation of federal revenues and...

The authors discuss the measurement and interpretation problems with Browning's 1993 analysis of the marginal cost of redistribution (MCR) through a linear income tax. They derive a general expression for the social MCR and show that Browning's measure inflates the MCR because (a) he ignores the...