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Old Posted Nov 8, 2019, 6:28 PM
ssiguy ssiguy is online now
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Join Date: Mar 2006
Location: White Rock BC
Posts: 7,025
The way they figure out equalization is simple math.......Financials + Politics = Equalization.

The way they calculate expenditures per province is pretty basic............everyone pays the same federal tax and the poorer provinces get more money back than the wealthier ones so they can maintain relatively the same health/social/educational services across the country. I don't have a problem with this and I don't think most Canadians do either. This part of the math is the one based upon financials.

The problems comes when the second part of the math equation comes into play..........the politics. This is where the system has become warped because this is where the revenue potential comes in and that is very much a political decision and henced determined by political considerations. It is patently ridiculous when a liguid that is black comes out of the ground it is considered a revenue potential but if it comes out of the ground clear, it isn't. Now before this is attacked by people saying I am being "anti-Quebec", that is not true. Other poorer provinces like Manitoba and NB have huge water revenue potential less so NS and effectively none on PEI. Of course the calculation is not a one-way street as water for electricity potential is massive in AB & SK yet they have chosen to make the least amount of use of it as both still rely on fossil fuels to make electricity.
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