Section 1 Glossary

Section 1 Glossary

black market: another term for underground economy

corporate tax: tax collected from businesses; based on a percentage of their earnings from the sale of products and services

federal transfers: significant amounts of federal government funds given to provinces and territories to support social programs and services

income tax: tax based on percentages of personal income

platform: a statement describing a political party's position on major issues

political continuum: a continuum that shows the amount of government control desired by a political party

sales tax: tax paid when a product or service is received; tax based on a percentage defined by the federal and by most provincial governments

• The national GST (Goods and Services Tax in Canada) rate was 5% at the time this resource was written.
• Alberta is the only province in Canada that does not have a provincial sales tax (PST) to pay in addition to the national GST.
  
  

social program: a government-provided service that promotes the meeting of basic needs and economic equality for all citizens

social safety net: social programs that provide assistance and opportunities such as health care, pensions for senior citizens, and income assistance for Canadians, especially to those who are disadvantaged

tax base: economic activity that the government taxes to pay for services and programs

tax evasion: not paying taxes when expected to do so; not declaring all income earned; a criminal offence

underground economy: the buying and/or selling of goods and services illegally; that is, buying and/or selling without paying tax