Equalization

Cost of Revolution

Economically, Quebec has lagged behind the richest parts of Canada for many decades. Hence, its tax base is smaller but its welfare programs have been among the most generous in Canada since the 1960s. On its own, Quebec would never have been able to construct such a large welfare state. Thanks to federal transfers, Quebec has been able to live beyond its means for decades.

Bavaria Mulls an End to Solidarity

Residents of the country’s industrial and financial powerhouse states, particularly Bavaria, resent having to make payments to poorer regions like the city-state of Berlin, which tops the list of transfer recipients, with annual help from its neighbors of €3 billion ($4 billion).

Spoilt West Invites Its Own Decline

It is easy and natural to think of the woes of the West’s main powers as an economic problem. Because that’s the way it is presented to us. And it is economic – at least, superficially. But if you take a step back, what we’re really living through is the decline of the West.

Euro-Zone Lessons for Canada

Unless Canadians get a handle on the provinces’ runaway spending, their growing mountain of debt, and the resulting tidal wave of interest charges, we can expect lots more home-grown social unrest, as have-not provincial governments fall short of voters’ outsized expectations.

Featured News

No Evidence of Climate Crisis

In his annual State of the Climate report published on April 14, 2022, Dr. Ole Humlum, Emeritus Professor at the University of Oslo, examined detailed patterns in temperature changes in the atmosphere and oceans together with trends in climate impacts. Many of these...

Media Release – The Real Have-Nots in Confederation: Ontario, Alberta and British Columbia: How Canada’s equalization program creates generous programs and large governments in have-not provinces

British Columbia, Alberta and Ontario—the traditional “have” provinces—have fewer doctors and nurses per 100,000 people, higher tuition rates, fewer child care spaces, less social service spending, and higher educator-student ratios in comparison with Quebec, the major equalization recipient.

The Cynical Politics Of Equalization

Kevin Gaudet warns that keeping equalization payments artificially high due to poor fiscal policies in recipient provinces would not only require greater federal debt (read: higher taxes), but also brews regional confrontation. Worth a look from the National Post.

Exiting the Transfer Payment Game

One idea that has received a great deal of currency in recent years is that of transferring to the provinces the sales tax field and allowing them to collect the GST and set the rate within their borders in exchange for an end to Ottawa’s transfers in many areas of social policy.