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I've been following the gripes of Saskatchewan, Nova Scotia and Newfoundland regarding equalization in the news. From what I have read, the new caps on equalization only come into effect when a "have not" province reaches the level of the poorest "have province". I don't see what the problem is here. Why should the taxpayers in Ontario or Alberta have to keep funneling money to other provinces when they are now at the same level? Equalization shouldn't work in a way that provinces subsidize other provinces to their own detriment. I don't know how Premiers Calvert, MacDonald and Williams can say with a straight face to anyone "Yes I know we're now at an even level, but Ontario should send more anyways." It doesn't make sense to me. Does it make sense to anyone? Am I missing something here?

   

Quebec

   

It is the problem of any government program which transfers wealth from one person or entity to another. It creates disincentives.

   

It could also mean development of resources ...why wouldn't Ottawa want to screw Alberta by developing the Gas and Oil industry in Sask . it only makes sense Just Getting rid of the PST in an oil rich province would slap Alberta hard and in the worst way ...but the question remains "Who are we serving here, Provincial nations within a nation , or Canada"

   

Her Majesty?

   

In principle, NS, NFD and Sask are like the guy on social assistance whinning his benefits have been cancelled just because he won the 649.........

   

I thought the idea was for resorce revenue to be like capital gains. Dose stablisation do anything but raise federal taxes to lower provincial taxes?

   

I can't follow the topic at all either.

   

It's pretty simple , Quebec gets most of the Equalization. The other provinces grambling...... If you scrap it... Quebec would be bitchin, not the other Provinces.

Honestly scrap it, If Canada had the population like the USA it would work really good. USA should have something like this, it would be a type of system the would help them with many problems.

Sammy

   

By the way in economic text books they state that transfers such as the equalization program are neccessary for a common currency. This is because the center is dominant economically and you loose something by giving up a local currency. So it's to do with the currency for one.

   

WHERE DID YOU COME UP WITH THIS IDEA? Your tax dollars, such a income tax , property tax and other taxs , which goes into the formula provides the system to equalization. Nothing to do with Canadas currency. Has to do more with population .

Sammy

   

It has to do with the mobility of the population and the effects of a common currency within a specific region.

If the value of a currency is too high for a region, the economy of the region will suffer. Equalization payments provide a buffer to the region if the population is not mobile enough.

   

In the regions of Canada any local spending tends to Zoom back to central canada. You can just eyeball this. The car, the manufactures. So if the had a local currency if would be lower in value.

   

Take the time to read the site

I Don't believe it's the same as 50 years ago, government collects to much money and wastes on non -essential programs. If Canadians only knew how much taxes are collected.
The government of Canada collects 210,000,000,000$ annually. It's the biggest corporation in this country. The government never talks about it's income, just how much it's dish out in the budget.
The Liberals were good at this. It's was a deficit or a surplus. Yes, that 210 billion dollars your government takes from income tax, corporate tax and others sources. On top of these taxes the Federal collects, you then have the provincal government taxing you. Then the municipal governments taxing you. In this report from the Auditor General, it's states Canadians love to be tax! So it will continue... Not!!! if you were living in the USA it wouldn't ..Senator a$$ would be grass!!But there not accountable in Canada, because the Senate is protect by the naive voters. If they only knew!


from the report
"8.66 Property taxes. Property tax is the revenue category that produces the second-largest amount of entitlements in the equalization program. In 1996-97, property taxes accounted for nearly $2 billion, or 22 percent of total equalization payments. Only personal income taxes produce a larger amount.
8.67 Property taxes were not brought fully into the RTS until 1982. They had first been recognized as a separate revenue category in 1973, when municipal property taxes for school purposes were brought into the equalization formula. As the Economic Council of Canada said in a 1982 report, one reason municipal property taxes had been left out of equalization when the RTS was first adopted was "that there was no suitable measure available to determine the base for the real property tax."

THIS WAS IN 1997, how much does property taxes count for now for equalization , close to 30%.... But , bet you didn't know that!!!! eh!
I'm ramblin now ...I'll say no more!!!!![popcorn]
I don't like this system of government, but we have to live with it, until it changes.
http://www.oag-bvg.gc.ca/domino/reports ... 9708e.html


Assistant Auditor General: Ron Thompson
Responsible Auditor: Jeff Greenberg 1997

Introduction
8.7 Transfer payments to the provinces have been described as the "glue" that holds the country together. They constitute the second-largest federal spending program, exceeded only by interest charges on the federal debt. In 1996-97, federal cash transfers to the provinces amounted to an estimated $23 billion, or 15 percent of total federal spending. In addition to these cash payments, the federal government provided the provinces with approximately $13 billion in tax transfers - that is, the cash value of tax points ceded by the federal government to the provinces to enhance their capacity to finance social services.
8.8 At $8.5 billion, payments under the equalization program, which is administered by the Department of Finance, account for over one third of total cash transfers to the provinces. Since the program was first adopted in 1957, all provinces but Ontario have qualified for equalization transfers at one time or another. Currently, seven provinces - all except Ontario, Alberta and British Columbia - receive equalization transfers. Exhibit 8.1 shows the growth, and the distribution by province, of equalization payments over the past decade.

8.9 Equalization payments are unconditional transfers to the provinces; that is, the receiving provinces are free to use the funds as they please. Payments are made on the basis of a formula that estimates the capacities of provinces to raise revenues by taxes and other levies, and compares them with a standard. Any province whose fiscal capacity is lower than the standard is entitled to equalization payments sufficient to raise its capacity to the standard.

8.10 The principle of making equalization payments has been enshrined in the Constitution since 1982. Specific authority for the equalization program is provided under Part I of the Federal-Provincial Fiscal Arrangements Act. The program is normally renewed every five years. The present program came into effect in 1994 and is due to expire in 1999.

http://www.oag-bvg.gc.ca/domino/reports ... 9708e.html

   

hm..... old an useless! That's what is wrong with it! JUST A PAIN IN THE A$$ Sammy..

p.s. In what year was the constitution, so called bought home? I believe it's the same year Chretien put in the property taxes i to the formula for equalization. Yip! blast from the past!
Chretien and Trudeau still haunt us!!!!!

Provincal government along with the Federal government need new ideas, and should be taking less taxes. Streamlining the governments, and making them accountable to the voters. I understand Harper is havin a tough go.


Anyways I'm rambling again !!!! Sammy

   

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