Equalization report favours Quebec

[Leafless]

The report unveiled yesterday recommends that Newfoundland and British Columbia take a cut while Quebec would get a $1.57-billion boost in funding.

" Quebec would see the highest year-over-year increase, they wrote of the proposed 30-percent increase.

In Quebec City however, Finance Minister Michelle Audit called the conclusion " a good basis for discussion and negotiation."

Prime Minister Stephen Harper raised eyebrows amoung some of the premiers when he catorized the commitment as merely his party's 'preference' on the issue.

http://www.canada.com/montrealgazette/news...518ff64&k=37645

There are problems with equalization formula and premiers are not to happy.

Equalization payments are out of sync with actual per capita incomes. The problem lies with the formula to detirmine equalization that involves 33 revenue sources.

Measurement using tax definitons distort tax bases to reflect political choices rather than true economic resources, such as retail sales tax, that exempt many services or personal taxes that exclude some forms of income.

The equalization program also does not account for underpricing by Provincial Crown corporations that keep provincial profits LOW , such as in Quebec and Manitoba's power systems.

http://www.uofaweb.ualberta.ca/govrel/news.cfm?story=46390

But I think one of the real problems is there are no direct stipulations to describe what exactly is the federal government role or how far should they go in this issue and this leaves room for political posturing or vote buying.

Quebec appears to be doing very well for a province that never even signed Canada's Constitution and has worked against the country with excessive constitutional demands with threats of separation with draconian language laws.

Premiers are upset.

[Charles Anthony]

That article from The Gazette also states:

"Al O'Brien, chairperson of the panel of economists, said the group didn't set out to benefit or penalize one province or another. He said Canadians believe in the country's equalization system but want to see it fixed."

How many people agree?

Here is my solution to fixing it:

Start treating everybody equally by not playing favorites.

Scrap the equalization system entirely.

[Rue]

" Quebec appears to be doing very well for a province that never even signed Canada's Constitution and has worked against the country with excessive constitutional demands with threats of separation with draconian language laws. "

Rather ironic.

[Leafless]

I to think equalization as seen it's better days as there is no 'down button' concerning equalization amounts and is just another form of giving tax payers money to the provinces with no strings attached.

Equalization payments subsidize 'failure' by removing incentives for provinces and it's residents to 'help themselves' rather than be given a lump sum payment with basically no strings attached.

[geoffrey]

The Maritimes have anti-business policies, and will continue to have these negative economic policies, until equilisation is ended. All areas of Canada have abundant human and natural resources, anything less than success is a choice.

Put it this way though, if Harper touches our oil money, he loses Alberta's votes next election. That's 28 seats he needs. Don't laugh at that either, we turned our back on Mulroney fast, we'll do it again if this formula isn't fair. I know I won't want to be part of Canada anymore if they ask for more from us to give to those provinces that want to be poor (well, they arne't poor, because Alberta and Ontario pay them to be as rich as they are).