A victory for the \u0027yes\u0027 side could do little more than raise expectations, creating a larger opening for separatist elements in the province
Complaints against equalization are indeed well founded. Because Alberta, which hasn’t qualified for the program since the 1960s, is richer than other provinces and incomes are higher, its people pay a disproportionate amount of federal taxes, portions of which are distributed to “have-not” provinces so they can offer similar services at similar levels of taxation. Most of the payments go to Quebec, which will receive $13.
While the purpose of equalization is to smooth out inequalities between provinces, fiscal capacity has been converging, especially since the oil price collapse of 2014. Political scientist Bill Bewick of Fairness Albertathat the per capital fiscal gap between have and have-not provinces fell from about $5,000 in 2015, to $1,600 this year. Because the program has a predetermined pool of funding, equalization is currently paying out more than the formula would call for.
Another objection is that equalization favours provinces with publicly owned power companies, because it calculates revenue based on the price the government sets for electricity. This is a particular boon for Quebec. “There is a strong incentive to keep power prices low,” Tombe says. If Quebec “were to have just two cents per kilowatt hour higher electricity prices, they would still have low electricity prices, relative to North America, but their equalization payment would have been $10.
It just isn’t obvious what Kenney and his United Conservative Party government hopes to accomplish. “Our expectation is not that there will be a constitutional amendment or the end of equalization, but we’re using this to get leverage,” Kenney said in a Facebook Live event last week, where he fully acknowledged that he doesn’t expect to get the necessary support from other provinces to amend the Constitution. The whole purpose, then, appears to be to kick up dust.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Why Alberta is holding a referendum on equalization — and what it could mean for other provincesUnder the equalization program \u0027have not\u0027 provinces receive equalization payments, while \u0027have\u0027 provinces do not
Read more »
Early results suggest Alberta votes in favour of removing equalization from Canada's constitutionWhile a final tabulation for the whole province won\u0027t be available from for another week, unofficial results were reported in several of the province\u0027s largest…
Read more »
Albertans voice their opinion on federal equalization paymentsAs polls in the Alberta municipal elections are set to close, voters in the province have also been given the chance to voice their opinions on federal equalization payments.
Read more »
Politics Briefing: New mayors of Alberta’s largest cities expected to continue on paths of predecessorsAlso: Federal Liberals have a choice to make on pandemic relief programs
Read more »
The seven-day work week: The ultimate flexible schedule that puts more control in workers' handsAllows employees freedom to control hours by working weekends, half\u002Ddays or even nights
Read more »
Wentz, Colts rebound from embarrassing collapse with rout of TexansCarson Wentz threw two touchdown passes, Jonathan Taylor ran for two more and the Indianapolis defense held up in the second half Sunday as the Colts blew out Houston 31-3.
Read more »