Q1. International trade agreements that are signed between countries (such as the recent Canada-European Union Trade Agreement) require that rates of tariffs levied on most goods be reduced to zero. Evaluate what effect, if any, tariff reductions would have on revenues of each of Canada's four orders of government (federal, provincial, local, and Indigenous).
Q2. High and rising health care expenditures are one important element that has contributed to provincial government deficits. New, or additional, payroll taxes may be one way to finance the higher health care costs. If adopted, how would the higher payroll taxes affect the size of the provincial budgets? How would this affect the role of government in the economy?