Skip to main content

“I am a Canadian, free to speak without fear, free to worship in my own way, free to stand for what I think right, free to oppose what I believe wrong, or free to choose those who shall govern my country. This heritage of freedom I pledge to uphold for myself and all mankind.” ~~ John G. Diefenbaker

‘Have-not’ provinces received $2.1billion more in equalization payments due to program design flaw ~~ Fraser Institute


Canada’s equalization program has cost taxpayers — including taxpayers in “have” provinces such as Alberta — $2.1 billion more in equalization payments since 2017 due to a program design flaw, finds a new study released today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

“Most Canadians likely assume that if the fiscal disparity between richer and poorer provinces shrinks, equalization payments also shrink—but currently, that’s not how the program works,” said Ben Eisen, Fraser Institute senior fellow and co-author of Why is Equalization Still Growing?

Due to a specific rule (created in 2009) within Canada’s equalization program, which transfers federal tax dollars to lower-income provinces, total equalization payments to “have-not” provinces must grow every year, even if the gap between richer and poorer provinces shrinks.

And that’s exactly what’s happened recently, due largely to economic slumps in “have” provinces such as Alberta. The gap between richer and poorer has shrunk, yet program costs kept rising. As a result, total program costs over the past two years have been$2.1 billion (or 5.7 per cent) larger than they would have been without the rule.

So, what can be done to solve this problem?


Thankfully, there’s a relatively simple solution. Ottawa can replace the “fixed growth rate” rule, which requires the program’s envelope to grow annually, with a new rule that lets the cost of the program shrink if “richer” provinces such as Alberta continue to struggle.

“Federal equalization is already a controversial program, and unfortunately a key source of regional discontent, so Ottawa should ensure that when the economic gap between richer and poorer provinces shrinks, the equalization program should shrink, too,” said study co-author Steve Lafleur, a senior policy analyst at the Fraser Institute.



TO READ the full report, “Why is Equalization Still Growing”, CLICK HERE
Labels:

Comments

Post a Comment

Popular posts from this blog

'Very good news' that Supreme Court will hear B.C. mineral claims case, Eby says

The BC government needs clarity from the Supreme Court of Canada on a landmark mineral rights claim, Premier David Eby says. But the lawyer representing the challenger says that they would have preferred the province respect the lower court's decision. Eby said Thursday it is very good news that the court will hear its appeal of a ruling that found the United Nations Declaration on the Rights of Indigenous Peoples and the provincial mineral claims regime are "inconsistent." The BC Court of Appeal ruled in December that the provincial Declaration on the Rights of Indigenous Peoples Act, or DRIPA, should be "properly interpreted" to incorporate the UN declaration into the laws of B.C. with immediate legal effect. That ruling set off the appeal from the province amid concerns that it could cause economic uncertainty ... CLICK HERE for the full story 
Post a Comment
Read more

EBY OFFSIDE WITH NATIONAL INTEREST AS CARNEY AND SMITH BUILD BC'S ECONOMIC FUTURE WITHOUT HIM ~~ BC Conservatives

IMAGE CREDIT :  CBC News   Prime Minister Mark Carney and Alberta Premier Danielle Smith announced a landmark agreement today committing Ottawa to designate a new pipeline to BC's west coast as a project of national interest by October 1, 2026, with construction approval targeted for September 1, 2027. The deal pairs the pipeline with a new industrial carbon pricing framework and a fall 2027 construction start. British Columbia, the province where the pipeline ends, where the jobs would land, and where the export terminal would be built, was nowhere at the table. "This is a nation-building deal, and the BC NDP have been locked out of the room," said Trevor Halford, Interim Leader of the Official Opposition.  "While the Prime Minister and the Premier of Alberta were doing the hard work of growing the Canadian economy, the NDP is on the sidelines calling this pipeline a 'fiction' and an 'energy vampire.'  He chose petulance over partnership, and now BC ...
Post a Comment
Read more

Kamloops - North Thompson BC Conservative MLA Ward Stamer speaks to Bill 20 — K’ómoks Treaty Act

The following is a condensed version of Kamloops – North Thompson MLA Ward Stamer’s remarks, to the BC Legislature, on the afternoon of Tuesday May 19th : I rise today to continue remarks on Bill 20, the K’ómoks treaty, and to address what I believe are some of the most important constitutional, democratic and governance concerns facing this Legislature today. At the centre of this debate are two major issues. First, unresolved overlapping territorial boundaries tied to this treaty process. And second, the growing legal and political consequences arising from the provincial government’s implementation of the Declaration of Rights of Indigenous Peoples Act, more commonly known as DRIPA. Much of the government’s defence on DRIPA rests upon references to the United Nations declaration on the rights of Indigenous Peoples, commonly known as UNDRIP. And this is where we must begin having a more honest and mature conversation in this province. UNDRIP was never originally designed to function ...
Post a Comment
Read more

Labels

Show more