Name: 
 

CHAPTER 12: The Design of the Tax System


Short Answer
 
 
IN THE NEWS: Can Tax and Spending Reform Make Canada a Real Northern Tiger?
Read the News Article and answer the following questions.
 

 1. 
It is suggested by the writer that Canada adopt a taxation policy that is less dependent upon non-productive expenditures.  What do you think will be the difficulties that a Canadian Government would face in adopting such a policy shift?
 

 2. 
In times of economic recession a government may be required to choose between productive and non-productive expenditures.  If it is forced to choose between the two, based on its ability to fund them, which do you think it would choose?
 



 
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