Friend speaking about how, in his area of a particular province, everything is cash payments. The housekeeper on Employment Insurance, with undeclared income; every contractor. Broadly-shared values with respect to tax evasion. Institutionalized, without particular institutional referents.
Friend expressed regret and concern about the circumstances, in terms of all the lost tax revenue. His taxes being deducted at source. Thought that maybe his province, or at least this area of his province, was following the Greek model to economic self-destruction. Then thought about provincial equalization programs. Tax revenues lost in one province, contributing to its have-not status, being made up through transfers from the “have” provinces.
Wondering if the “have” provinces should be in a position to monitor the “have not” provinces more closely, given that one province is a form of debtor and the other is a form of creditor.
Only when it gets up to the national line, since both federal and provincial taxes are being evaded…