BG 6 471.23 Fall 2013. Impact of Federalism both feds & prov have rights tax producers consumers regulate varies.

BG

6471.23

Fall 2013

Impact of Federalism

both feds & prov have rights• tax

producers consumers

• regulate varies

Impact of Federalism

govts vary in willingness to act• business community

• public

• political philosophy

Constitution

British North America act• 1867

repatriation• 1982

Meech Lake• 1987

Constitution

different from US• more powers to govt

feds dominant

» increasingly reluctant to use powers

• no separation of powers

• not sacred no “originalism”

court powerful• much less controversial

Constitution

feds• POGG clause

• trade

• commerce

• unemployment insurance

• monetary system

• commercial standards

• incorporation

Constitution

prov• can’t levy duties on imports

• free mobility

• own natural resources w/i borders

• tax ind & corp

• business interests

Constitution

business• through courts

ultra vires

• process “pretend” issue is division of powers form alliance w/ one attack other

• result constrain both

» erode the “positive state”

property rights

due process

Fed/Prov/Bus

older: Nickel business wanted tariff

• Ottawa said no

• Ontario persuaded then backed off

» business lobbying

fed

prov bus

Fed/Prov/Bus

less old: Energy fight over tax revenues

• effects tax deductions where refineries located price consumers pay exports competitor

fed

prov bus

Fed/Prov/Bus

newer: Potash fight over right of regulation

• effects ownership ownership constraints

fed

prov bus

goes both ways

Fed/Prov/Bus

newest: pipelines feds & business float

multiple options NGOs & first nations get

involved early• effects

provinces fight amongst themselves

everything more complicated feds & business may have

more “freedom”

fed

prov bus

NGOs(mainly enviro

Groups)first

nations

prov

prov

prov

Fed/Prov/Bus

now• negotiation after court decisions

• reluctance to use power

• support favoured over regulation taxation

• progress on interprov barriers

• prov’s becoming more similar

fed

prov bus

Interprov barriers

who needs tariffs when you have: procurement investment labour mobility measures & standards ag & food alcohol taxation

natural resources processing

energy communications transportation environmental

protection

Interprov differences

transfers regional economic devt willingness to tax preferences

• public ownership of utilities

• Que vs. Alta

• Ont vs. Que vs. NS

Positive state

Nova Scotia

relocation incentives• Michelin Tire

• Volvo

• Litton

sales tax exemptions• machinery

• equipment used in R&D

manpower training government

procurement

Nova Scotia Research Foundation

Venture Capital Program

Industrial Estates Ltd Sydney Steel

• DEVCO

• Canadian National

Interprov differences

transfers regional economic devt willingness to tax preferences

• public ownership of utilities

• Que vs. Alta

• Ont vs. Que vs. NS

Maybe not enough difference?

Political instability

separatism• business as “ballast”

• Meech Lake

conflict• “capital strike” in Alta

Political power

taxes incentives

• jobs

• land & infrastructure

• investment

• grants

labour codes access philosophy

Political Analysis for Business

Baron

ch 6

public policy

Structured Pluralism

public policy analysis

policy interests

constituent interests

Firm

politicallyrelevant

informationtechnically relevant information

Interests

Interests

3 meanings those with a stake in an issue

• individuals

• firms

• organizations

the magnitude of their stakes what those stakes are

interestgroups

organized

not organized

Predicting nonmarket action

strength likelihood effectiveness

Predicting nonmarket action

strength• aggregate benefits to interest group

• benefit to member of group

• alternate routes

Predicting nonmarket action

strength likelihood

• costs

• estimated effectiveness

Predicting nonmarket action

strength likelihood effectiveness

• interest group members # skill access distribution resources “rationality” agreement

Predicting nonmarket action

strength likelihood effectiveness

• interest group members

• opposition

• “cultural resonance”

Wilson-Lowi Matrix

BENEFITS

concentrated distributed

HA

RM

S

concentrated

interest group

politicsentrepreneurial

politics

distributed

client

politics

majoritarian

politics