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Taxation in Canada

Taxes are mandatory payments by individuals and corporations to government. They are levied to finance government services, redistribute income, and influence the behaviour of consumers and investors. The Constitution Act, 1867 gave Parliament unlimited taxing powers and restricted those of the provinces to mainly direct taxation (taxes on income and property, rather than on activities such as trade). Personal income tax and corporate taxes were introduced in 1917 to help finance the First World War. The Canadian tax structure changed profoundly during the Second World War. By 1946, direct taxes accounted for more than 56 per cent of federal revenue. The federal government introduced a series of tax reforms between 1987 and 1991; this included the introduction of the Goods and Services Tax (GST). In 2009, the federal, provincial and municipal governments collected $585.8 billion in total tax revenues.

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Conscription in Canada

Conscription is the compulsory enlistment or “call up” of citizens for military service. It is sometimes known as “the draft.” The federal government enacted conscription in both the First World War and the Second World War. Both instances created sharp divisions between English Canadians, who tended to support the practice, and French Canadians, who generally did not. Canada does not currently have mandatory military service. The Canadian Armed Forces are voluntary services.