Eliminating “overpayments" could reduce regional tensions.
canada's federal equalization program
Quebec banned shale gas fracking and tightened rules for oil and gas drilling.
Closing the income gap with the rest of Canada will require Quebec’s government to work to attract more investment.
If federalism means anything, provinces must have real responsibilities.
Jason Kenney, leadership candidate for Alberta’s United Conservative Party, called for reform to Canada’s equalization program.
This fiscal year, Canada's federal government will send more than $68 billion in transfer payments to the provinces.
Saskatchewan Premier Brad Wall’s call for changes to Canada’s system of equalization makes an overview of that system timely.
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.