Where do our tax dollars go?

Summary

The video explains how the Canadian federal and Nova Scotia governments collect and spend money. Taxes, especially income tax, are the primary source of revenue for both. The federal government spends much of its budget on national defense, public safety, and social programs, while Nova Scotia's largest expenses are healthcare and education. The video highlights the importance of government spending on public services and encourages citizens to be mindful of this when voting for representatives, emphasizing that the budget is approved by elected officials on behalf of the people.

Takeaways

• 💰 The federal government of Canada spent $276 billion in 2012, and Nova Scotia's budget was $9.5 billion.
• 📊 Taxes are the primary way governments generate revenue, with most coming from individual income taxes.
• 🧾 Nearly half of the federal government's revenue comes from personal income taxes, with the rest from corporate taxes, sales taxes, and other sources.
• 🏢 Crown corporations like VIA Rail and Canada Post contribute to government income through their profits.
• 💸 The largest portion of federal spending goes to paying down interest on the national debt, followed by National Defense and public safety.
• 🏥 One-quarter of government transfers go to individuals in need, such as pensions for the elderly and employment insurance for the unemployed.
• 🏫 Nova Scotia receives significant funding from the federal government for health care, education, and children’s programs.
• 📈 Nova Scotia’s largest expenses are healthcare and education, followed by social services and paying down provincial debt interest.
• 🍼 Specific costs, like delivering a baby in Canada, are high ($2,700+), while the cost of keeping a person in prison exceeds $112,000 per year.
• 👩‍💼 Provincial and federal budgets must be approved by legislatures, which can adjust spending, taxes, and borrowing based on priorities.

Q & A

How much did it cost to run the Canadian federal government in 2012?

It cost $276 billion to run the Canadian federal government in 2012.

How do governments primarily collect revenue?

Governments collect almost all their revenue through taxes, which come from people and businesses, with the majority coming from individuals.

What are the main types of taxes that the federal government collects?

The federal government collects income taxes, corporate taxes on businesses, sales taxes, taxes on fuel and imported goods, and employment insurance premiums from working individuals.

What role do Crown corporations play in government revenue?

Crown corporations, which are businesses owned by the government like Via Rail and Canada Post, contribute to government revenue.

What are the biggest spending areas for the federal government?

The federal government’s biggest expenses include paying down national debt interest, National Defense, public safety, and the Canada Revenue Agency. It also spends on various programs, departments, and Crown corporations.

How does the federal government support individuals in need?

The government provides direct transfers to individuals in need through programs such as income and pension support for the elderly, employment insurance for the unemployed, and tax breaks for families with children.

How does federal funding support provinces like Nova Scotia?

A significant portion of federal spending goes to provinces and territories for healthcare, post-secondary education, children’s programs, and other municipal and provincial support.

What is Nova Scotia's biggest single source of revenue?

Nova Scotia’s largest source of revenue is the transfer money it receives from the federal government.

What are Nova Scotia’s main expenses?

Nova Scotia’s main expenses are healthcare, education (including primary, secondary, and post-secondary education), community services, and interest payments on provincial debt.

How does the cost of delivering a baby in Canada compare to the cost of keeping someone in prison?

Delivering a baby in Canada costs at least $2,700, while it costs $112,000 per year to keep someone in prison, which is more than twice the average Canadian's annual income.