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Pressure mounts to change ‘stabilization’ program and increase payments to Alberta
Alberta received just $249 million in payments despite a revenue loss of $7.2 billion. ...
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New report notes ‘over-equalizing’ nature of equalization program
Currently, equalization payments increase in line with nominal GDP growth. ...
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Maritime provinces vulnerable to any future changes to equalization program
In 2019/20, equalization comprised 21 per cent of provincial government revenue in Prince Edward Island. ...
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Heavy reliance on Ottawa puts Atlantic Canada’s finances at risk
The three Maritime provinces rely more heavily on federal transfers than any other province. ...
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Maritime provinces could soon see smaller slice of equalization pie
Appeared in the New Brunswick Telegraph-Journal, December 8, 2020 Many Canadians have long thought of their country as divided between affluent “have” provinces and poorer “have-nots.” The traditional dividing line has been whether a province receives ...
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Measuring the Equalization Clawback on Natural Resource Revenue in Have-Not Provinces
Over time, critics have identified many problems with Canada’s equalization program. This study will examine and quantify one such problem: the disincentive that the program creates for the development and deployment of natural resources in “have-not” ...
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Equalization is broken and needs fixing now
Appeared in the National Post, June 18, 2020 While the full extent of the damage is not yet known, the economic consequences of the COVID recession have been severe. Millions are now unemployed and countless businesses have been shuttered, some forever. ...
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Equalization and Stabilization Post-Recession: Is Canada Ready?
Is Canada’s existing system of federal transfers designed to respond adequately to economic volatility across the country and more precisely to rapid changes in relative income levels across provinces? The purpose of this paper is to investigate this ...
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It’s time to let equalization shrink
Canada’s equalization program has been in the news recently. Alberta Premier Jason Kenney has repeatedly suggested his province may hold a referendum related to the program as part of a broader effort to push the federal government to ...
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Why Is Equalization Still Growing?
Equalization is a federal government program that aims to provide all Canadians with access to comparable public services at comparable levels of taxation. To do this, it transfers federal tax dollars collected from taxpayers across the country directly ...