Talib wrote:Anyway, Canada has a relatively egalitarian distribution of wealth, I think. Poorer provinces ("have-nots") receive subsidies in the form of transfer payments from the richer provinces in order to stimulate their economies and ensure the disparities between regions don't become too drastic.
Something similar happens in the USA although it isn't formalised in the same way. According to the Cato Institute, 42% of State and local spending comes out of Federal funds. Rich states (e.g. Illinois, California, New York, etc.) typically receive back 75-80¢ for every dollar they pay in Federal taxes whereas the poorest states (e.g. Alabama, Mississippi, West Virginia, etc.) get back up to $2. A report issued in 2004 showed that for DC, this figure was a whopping $6.17. (Doubtless a consequence of it having far more Federal facilities than anyplace else and virtually no tax base.)