HillNote
Governments finance the goods and services that they provide in various ways, including through taxing, investing and borrowing activities. The first of these activities – taxation – can take several forms. In Canada, sources of funds that help to finance federal initiatives include social security contributions, personal income taxes, corporate income taxes and consumption taxes. With a specific focus on contributions to the Canada Pension Plan/Quebec Pension Plan (CPP/QPP) and Employment Insurance (EI) premiums, this HillNote provides information about the revenue, rates and rationale relating to such contributions and premiums. Other Hill Notes discuss federal personal income taxes, corporate income taxes and consumption taxes.