Equalization 101

  • February 12, 2020
I cannot believe how many people are still on my Twitter feed @Butterflymbca arguing about ‘equalization’ and how ‘Alberta pays for the rest of the country and gets nothing in return’.So I’m going to say this loud and clear… propaganda memes are not facts… the facts are:
  • Regardless of government in power, ALL Canadians pay federal taxes.
  • If you pay more federal taxes than your neighbor, it means you’ve earned more money.
  • If collectively your province pays more federal taxes than another province it’s because your province has collectively earned more money.
  • ALL provinces (yes, even Alberta) get federal transfer payments for things like health care, education, infrastructure etc…
  • The amount of federal tax dollars received depends on many factors, two of the most important are population and need
  • If you live in a province with less people you’ll get less money than those in a province with more people, it’s just math.
  • If you live in a province who collectively earns more than other provinces, you have less demonstrated need and will receive less from the feds (this is where provincial fiscal
  • management is essential).
Equalization 101.Zero to do with political affiliations, East vs West, the name of the Prime Minister or any specific industry.It’s math, not manipulation.You’re welcome.Michelle Budiwski

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