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Income inequality has increased over the last years between the richer and the poorer, but in many countries, government transfers and social programs play an important role in reducing income inequality. In this paper, we will study health care financing in Canada as a social transfer to fight inequities. Our progressive tax rate system makes that the rich pay for the poor. Canadian families with the lowest income will pay an average total tax bill of $2,148 (16%) and an average health care insurance of $523. On the other side of the spectrum, the 10 percent of Canadian families with an average income of $278,012 will pay an average total tax bill $152,869 (55%) and health care insurance of $37,239. In addition, the Government of Canada provides significant support to provincial and territorial governments with transfers that enables less prosperous provincial governments to provide their residents with public services to support social programs, thus reducing inequities and subsidizing social programs that some Canadians could not afford, thus reducing inequities. [ABSTRACT FROM AUTHOR]