Big City Residents Pay More: C.D. Howe Institute



    TORONTO, June 7 /CNW/ - Residents of Canada's nine major cities generally
pay much more in taxes than they receive in government programs and services,
according to a Commentary released today by the C.D. Howe Institute. In
Following the Money: Federal and Provincial Budget Balances with Canada's
Major Cities, University of Calgary economist Ronald D. Kneebone says this
result is neither unusual nor unexpected. The imbalances, he says, reflect the
influence of a progressive tax system and the design of government programs
that transfer income to the aged and the disadvantaged. In 2002, the average
citizen of Calgary paid $3,082 more in federal taxes than he or she received
by way of federal transfers and services. For the average citizen of Toronto,
the figure was $2,113 and for the average citizen of Montreal it was
essentially zero. The study's findings, he says, have important implications
for government policymakers.
    For the Commentary, go to: http://www.cdhowe.org/pdf/commentary_249.pdf




For further information:

For further information: Ronald Kneebone, Professor of Economics and
Director of the Institute for Advanced Policy Research, University of Calgary;
Finn Poschmann, Director of Research, C.D. Howe Institute, (416) 865-1904,
cdhowe@cdhowe.org


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