Equalization

[chuckChuck]

Well then in that case, apparently there is no more need for equalization. With unemployment level that low, it Sounds like the rest of Canada is doing very well. Jobs for everyone, wealth creation, tax receipts. No need for charity or redistribution.

Oh wait a minute. The only reason why the unemployment level is that low is because of all of the newly created government positions competing with the dwindling remaining private sector, and all of the people unwilling to work when the government pays them to stay at home instead. Both of which require massive wealth transfers from those who still work in wealth producing industries.

The equalization formula is based on fiscal capacity in each province. Not employment levels.

We know that the resource sector in Alberta gives the province a fiscal advantage because of high profits and higher wages and a lot of economic activity that many other provinces including Manitoba don't have.

Alberta won the mineral lottery Manitoba not so much. Alberta receives significant federal transfers as well.

Harper and Kenney tweaked equalization but didn't get rid of it. And Crypto Polly will keep it as well.

[GALAXIE500]

Equalization in this country works very simple , it goes like this :

Eastern Canada needs to have the control , because that is where all of the Liberal votes are , so they make sure that the western provinces ( which are a force to be reckoned with with all of their resource wealth) are hamstrung all of the time , taxed literally until we are on our knees crying uncle , over - regulated constantly , penalized constantly , etc , etc , etc, basically so we are constantly chasing our own tail and getting a big boot from Ottawa on our throat day in day out.

The current government is horribly jealous and very threatened by the fact that we have some serious power out here in the west and they want to squash it like an annoying insect, and get rid of it , period.

This is what has been happening since October 2015 , and Chuck I think it's time you took your Liberal blinders off and wake up bud!

Your "crypto Polly " rant is getting kind of old by the way.

[AlbertaFarmer5]

The equalization formula is based on fiscal capacity in each province. Not employment levels.

I see, glad you clarified that, because some poster named chuckChuck earlier in this thread was claiming that unemployment levels were relevant to the equalization discussion. But now, when I pointed out that those numbers are distorted by government hiring, funded by equalization, suddenly they are not relevant.
Seems to be a heads you win, tails I lose type of argument.

[jazz]

wow, chuck actually told a fact for once. Yes it is based on fiscal capacity and some provinces game it by letting the govt stand in for private sector productivity. Like Quebec and the Maritimes.

Ab needs private sector capital because energy is a capital intensive business with special expertise. So they keep a tax fiscal regime to keep that attractive. Nobody will invest in Quebec because they are commies so they use the govt to pay for their projects and subsidize programs. So that distorts the tax base which then causes the equalization to flow one way.

But all Ab needs to do is put in its own pension plan and possible govt match sovereign wealth fund and that will halt that gravy train for good.

[WiltonRanch]

wow, chuck actually told a fact for once. Yes it is based on fiscal capacity and some provinces game it by letting the govt stand in for private sector productivity. Like Quebec and the Maritimes.

Ab needs private sector capital because energy is a capital intensive business with special expertise. So they keep a tax fiscal regime to keep that attractive. Nobody will invest in Quebec because they are commies so they use the govt to pay for their projects and subsidize programs. So that distorts the tax base which then causes the equalization to flow one way.

But all Ab needs to do is put in its own pension plan and possible govt match sovereign wealth fund and that will halt that gravy train for good.

Don’t forget a culture of corruption in Quebec. The reason organized crime and the mafia flourish they’re relative to Alberta or Saskatchewan. It is only natural for a Quebecois PM to appear corrupt and play favourites to Quebec based interests as it is second nature and he does not think he’s doing anything wrong. The ndp in Saskatchewan was very entrenched in the same sort of cronyism at their height. Without an apparatus with teeth and truly independent of political influence to stamp out corruption and cronyism we all suffer.

[chuckChuck]

Hardly a mention of have not Manitoba getting equalization.

Why can't you admit that one of the prairie provinces without as many minerals as their "lucky" neighbors also benefits from equalization?

No doubt the Manitoba Conservatives are holding back the resource sectors full potential. LOL