Well, that's the $64,000 question. Isn't fiscal federalism the nature of Canada? Trying to figure out what the alignment is between provinces and the federal government? Essentially, you have two choices. Either the federal government decides to vacate space and then provinces can step in and raise taxes, or you transfer more.
I don't think there's a single right answer. I think we've always ended up with a kind of blended system. In some cases, some governments have transferred tax points, which has happened in the past. In other cases, governments have chosen to transfer more funds.
What is clear is that most of the cost drivers in public services are at the provincial level. They include health care, which has grown by about 6% to 6.5% over the last 20 years. In a world of nominal growth of 4%, clearly something has to happen there in terms of the state of the health care system. It's the same with education.
The provinces have the expensive programs. Right now, the federal government has the revenue source.