Trego's Mountain Ear

"Serving North Lincoln County"

Understanding Canadian Equalization

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Years ago someone told me “Americans are benevolently ignorant about what goes on in Canadian politics, but Canadians are malevolently well informed about American politics.”  I’m really noticing how uninformed I’ve been about Canada’s politics as I watch the election move along and pay a bit more attention.  I’ve been downright intrigued as Alberta’s Premier keeps heading south to visit Trump.

So I’ve done a bit of reading about Canada’s provincial equalization.  Wikipedia explains it: “In Canada, the federal government makes equalization payments to provincial governments of lesser fiscal capacity so that “reasonably comparable” levels of public services can be provided at similar levels of taxation.[1] Equalization payments are entrenched in the Constitution Act of 1982, subsection 36(2).[2]

It reminds me of Montana’s equalization for school taxation – and this map shows which provinces make out on the equalization:

It’s pretty obvious that the provinces colored black are taxed for the benefit of the eastern provinces.  The map shows why Danielle Smith visits Trump – Alberta is shafted so much by the eastern provinces that Trump’s tariff’s have trouble registering.

That 13.3 billion dollar (Canadian) equalization in Quebec keeps Quebec from threatening to secede.  Equalization cost Alberta $67 billion. What has it bought? Hostility – Canadian Energy News, Top Headlines, Commentaries, Features & Events – EnergyNow  went to print in 2021 – here’s what the numbers looked like four years ago:

“Sixty-seven billion dollars.

That’s how much the federal government’s equalization scheme has cost Alberta taxpayers since its inception in 1957.

This year, equalization will cost Alberta taxpayers nearly $3 billion. That means that equalization will cost an Alberta family of four about $2,600 this year on average.

Since equalization was created, Albertans have received less than 0.02% of all equalization payments. The last penny paid to Wild Rose County from equalization was all the way back in 1965.

Equalization is only one federal program that redistributes money away from Alberta taxpayers. After considering all the money the feds tax and spend, Albertans have paid more than $600 billion more to Ottawa than the province received back in federal spending since 1961.”

I never realized – benevolently ignorant, remember – just how much Alberta is exploited to keep Quebec in Canada.  Now, it looks like some of the Albertans are tired of their system.  As close as we are to Canada, we probably should pay more attention to what goes on with their politics.

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