Martin Plans To Share Federal Tax Revenues With Provinces

by Mike Godfrey, Tax-News.com, Washington

01 May 2003

Canadian Finance Minister Paul Martin plans to share federal tax revenues amongst the provincial cities if he is chosen to be the country's next Prime Minister, according to a report in the Toronto Star this week.

"It's nonsensical in the 21st century not to recognize that 80 per cent of the population lives in big cities and their financial needs are different," Martin told the Star, adding that he doesn't want to see the provinces "live hand-to-mouth dependent upon the good will" of the federal government.

Therefore, as Prime Minister, Martin declared that he would look at ways of creating new sources of funding for the regions to address their economic difficulties, revealing that this would likely involve directing revenues away from the federal coffers in Ottowa.

Martin, who is contesting the Liberal Party leadership with current deputy Prime Minister John Manley, made his comments as the leadership debate got underway in earnest. Manley has stated that he is opposed to government interference in provincial finances.

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