Originally posted by Tingkai
Equalization payments are a transfer of federal money to the provinces. Provincial governments do not contribute money to the payments.
From the CBC
"Equalization payments are money [the federal government gives to poorer provinces to help narrow the gap between the "have" and "have-not" provinces."
Equalization payments are a transfer of federal money to the provinces. Provincial governments do not contribute money to the payments.
From the CBC
"Equalization payments are money [the federal government gives to poorer provinces to help narrow the gap between the "have" and "have-not" provinces."
It wouldn't make any sense if the Alberta government was directly giving money to Newfoundland, would it?
"The fiscal capacity of a province is a measure of its ability to raise revenues from more than 30 revenue sources." -- From Department of Finance Canada
Yes, Alberta's fiscal capacity includes oil revenues. That is the only reason why its fiscal capacity is so high. But oil revenues do not fund the equalization payments.
Yes, Alberta's fiscal capacity includes oil revenues. That is the only reason why its fiscal capacity is so high. But oil revenues do not fund the equalization payments.
To quote the CBC:
Currently, the federal government takes back 70 cents in equalization for every dollar in energy royalties.
Since we're dealing with federal money, income taxes provide a good picture of the contribution residents of each province make to the equalization payments. We could also look at profit tax, but that would be skewed in favour of Ontario since most Canadian corporations are based in Ontario, even if they do business throughout the country.
That's because you incorrectly believe that only Alberta and Ontario contribute to the payments. In fact, the payments come from all Canadian taxpayers. For example, money from taxpayers in Newfoundland goes to the federal government which then transfers a portion to the Nfld provincial government.
Again, you don't understand the point of the equalization payments. Think of it as two parts of a city, one rich and one poor. The city collects money from all of its taxpayers and then spends it equally throughout all of the city.
That's the idea, you seem to misunderstand my argument it would seem.
There are problems with the current equalization payments system, but I think a starting point is for you to understand how the system works.
Look at your previously cited figures -- they don't even add up to the payments distributed, or even come close to it.
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