Lesson 24 — Activity 1: The Federal Government

We need tax dollars coming in to keep Canada at its current state and to fund a lot of very useful programs around our country. Now, let's take a look at the difference between the federal and provincial governments.

As you learned in a previous lesson, the federal government is in charge of all of Canada, and so our tax money for the federal government goes to things that are the same everywhere in Canada.

Let's take a closer look at each of these areas.

Employment insurance: If you lose your job, you might be eligible for employment insurance. The federal government provides temporary financial assistance while you look for work or upgrade your skills. Part of every tax dollar the federal government collects goes to funding for employment insurance.

The Canadian Armed Forces: The Canadian Armed Forces protect Canada and defend North America in cooperation with the United States. They also contribute to international peace and security through operations around the world.

The Royal Canadian Mounted Police (RCMP): The RCMP is the Canadian national police service. They provide law enforcement and security to Canadians across the country.

The Canada Pension Plan (CPP): The Canada Pension Plan is a social security program provided by the federal government. CPP provides you and your family with partial replacement of earnings in the case of retirement, disability, or death.

Immigration and customs officers: Immigration and customers officers through the Canada Border Services Agency (CBSA) are responsible for keeping Canadians safe through border security, immigration, and customs services.

Transfer payments to the provinces: In Canada, the federal government makes payments to less wealthy Canadian provinces to equalize the provinces. By doing this, the federal government provides significant financial support to provincial governments on an ongoing basis to assist them in the provision of programs and services.

These are just a few examples of where the tax dollars that the federal government collects from each Canadian go. Take a look at the image below. This image shows exactly where your tax dollars went for the 2013/2014 fiscal years.

Where does your tax dollar go?

Most people are familiar with or have used the services listed in this lesson. It is very important that our tax dollars go to these important areas to preserve our way of life. What a different place Canada would be without the RCMP or employment insurance!

Self-check!