Taxation and the middle class

[tomh009]

The federal government really cannot fix this. Municipal governments only exist at the pleasure of provincial governments. Yes, the province could fund municipalities out of tax revenue -- but if you really want the taxes to be progressive, and poor people paying less, then you need to fund it using income tax, not HST.

As for block grants, are you proposing that each province/territory should get $x per resident, regardless of its economic situation? If yes, then the rick provinces would love this, but the less well-off ones would suffer. This might be simpler, but it would increase inequality. Transfer payments are designed to reduce inequality, and they have been doing so since 1867.