Mikey wrote:Yeah, I get it. But it doesn't work that way. In your ideation, one of two things would have to happen:
a) citizens of Quebec (or whatever other province were to become a U.S. state) would have to pay the standard income tax (which you designate as x) plus a premium, which you designate as p, while residents of other states would merely have to pay x. Unfortunately for this hypothesis, the IRS charges what they charge - no matter which state in which you live. There is no p%.
Hum, maybe we are missing an important point of information which might influence the conversation: In Quebec (and RoC) we pay taxes both to the Province and the Federal level. I assumed it's the same in the U.S., but I might be wrong.
And the p% I am talking about is the premium tax paid by canadian to the Federal government that is meant to pay for the healthcare. It will stop going to the central government once Quebec joins the U.S., since Quebec will administrate fully that program, both on the income and on the expense side.
The IRS will charge what they usually charge in term of federal taxes, which will replace the standard Canadian federal tax. Federal programs on the state-level (such as healthcare) Quebec wants to keep will be paid by the difference of income tax Fed-Canada charges and what Fed-US charged, transferred into l'Etat du Quebec tax scheme.
Mikey wrote:b) a portion (p) of the total income tax (x) would be used to fund such healthcare programs for the states-nee provinces. Things don't work like that either; the federal revenue raised from a certain state isn't parsed in the federal budget according to that state's programs. In other words, the federal gub'mint takes all of its tax revenue and adopts a federal budget.
Which is why I said you would have to make a tax separation of the Fed-Canada's tax revenu between what is simply attributed to the "whole country" budget (ex: military), and what is parsled back to the provinces. The money that is collected and parsled back will simply be collected and administrated by the Provinces themselves. You don't understand the principle of tax reallocation, don't you?
Mikey wrote:The final analysis is this: if Quebec joined the Union and its residents wanted a statewide healthcare program - and were willing to pay a tax premium for it - Quebec would have to raise that tax money on a state level and implement the plan on a state level. It's no different in its effect on the citizen then the plan I paraphrased in "a" above, it just eaves the federal government out of things in which it has no business.
That's what I've been saying. The difference is that the current tax paid to the Fed-Canada government are partly going back directly into the province's budget, that negociation between Provinces vs. Fed government is usually pretty heated and wasteful (as you need negociation over healthcare, over education, etc...), as the Fed doesn't want to give more depending ont he provinces' needs. If you have each province/state paying for its own, I'd be happier. As I said, what I like about the U.S. is the Federal goverment minding its own business, as opposed to Canada's, which keep a leash on the provinces through budget allocation.