Rainforest
Senior Member
What ToAreaFan misses is that the feds take in too much money for their narrow mandate, so they have to spend the money. They have a crucial role to play in investment in virtually everything in Canada. Ontario spend money on defence? Yeah that's a great comparison. Zing.
Both the feds and the province have exactly as much money as what they are willing to take from the taxpayers.
It is psychologically easier to split the transit bills three-way (municipal, province, feds) that two-way (municipal and province). Taking into account the present transit deficit, I welcome federal contributions.
But if all governments functioned on a totally rational basis (no psychology involved), then one could make a case that two-way funding is easier to manage (province raises its tax rate by 0.3% or whatever is needed, and feds cut their rate accordingly).