canada's federal equalization program

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Removing resource revenue from equalization would do nothing for Alberta

Jason Kenney, leadership candidate for Alberta’s United Conservative Party, called for reform to Canada’s equalization program.

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This fiscal year, Canada's federal government will send more than $68 billion in transfer payments to the provinces.

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Saskatchewan Premier Brad Wall’s call for changes to Canada’s system of equalization makes an overview of that system timely.

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Canada’s federal equalization program is motivated by good intentions. However, the program has unintended consequences, and creates perverse incentives that have allowed at least two “have-not” provinces to shun sensible economic opportunities.