No question some provinces pay more and some provinces get more because of equalization. That is the whole purpose of equalization transfer, to ensure the is the fiscal capacity for citizens in all provinces to get equal services. Those provinces that end up paying have a larger capacity to earn tax revenue. Those that get more have less opportunity to earn. But the point I made is equalization payments come from general revenue which is funded by every Canadian taxed at the very same progressive tax rate.
Is there a problem with the formula for determining the ability to earn revenues. Absolutely. Jazz is right, Quebec hydro should be included in the formula. Is there a problem with determining the need. Probably. Personally I think equalization payments should be targeted rather than allowing provinces to determine itself how to spend equalization funding but that is not how the formula was drawn up. Is Quebec the biggest winner, maybe in terms of total dollars but on a per capita basis PEI benefits the most from equalization.
What most people have forgotten, or perhaps prefer to ignore is the formula which is now used to set equalization transfers was introduced in 2007 by the Harper Conservatives and modified in 2009 by the same government, a government in which Jason Kenney was a cabinet minister. The formula calls for renewal every 5 years and the Liberals have reapproved the Conservative formula without changes twice. So what you are blaming on Trudeau is actually a Conservative plan.
Is there a problem with the formula for determining the ability to earn revenues. Absolutely. Jazz is right, Quebec hydro should be included in the formula. Is there a problem with determining the need. Probably. Personally I think equalization payments should be targeted rather than allowing provinces to determine itself how to spend equalization funding but that is not how the formula was drawn up. Is Quebec the biggest winner, maybe in terms of total dollars but on a per capita basis PEI benefits the most from equalization.
What most people have forgotten, or perhaps prefer to ignore is the formula which is now used to set equalization transfers was introduced in 2007 by the Harper Conservatives and modified in 2009 by the same government, a government in which Jason Kenney was a cabinet minister. The formula calls for renewal every 5 years and the Liberals have reapproved the Conservative formula without changes twice. So what you are blaming on Trudeau is actually a Conservative plan.
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