Connect with us

Alberta

Equalization Program grows to record $20.9 Billion – Fairness Alberta looking to Ontario and BC for support

Published

4 years ago

4 minute read

This article submitted by Fairness Alberta

FAIRNESS ALBERTA: RECORD EQUALIZATION PAYMENTS IN BUDGET ARE UNFAIR, UNAFFORDABLE, AND UNNECESSARY

Fairness Alberta has released an analysis highlighting how this year’s federal budget allocates a record $20.9 billion to the Equalization program and plans to hike payments to so-called ‘have not’ provinces by 20% over the next four years.

Fairness Alberta Executive Director Dr. Bill Bewick is calling on Canadians in British Columbia and Ontario in particular – who will pay roughly $2,400 per family of four this year into payments for others – to join Albertans in demanding Equalization reform.

“The $20 billion-and-growing price tag for Equalization payments to 30% of the country is not just unaffordable, it is totally unfair and unnecessary given how much the gap between the ‘have’ and ‘have not’ provinces shrunk since 2015,” said Dr. Bewick. “When you consider the higher costs and budget struggles in places like Ontario, B.C., and Alberta, it is unacceptable to take so much from them to fund other provinces’ budgets, and outrageous that this would increase by 20% over the next four years.”

Fairness Alberta used the most recent Library of Parliament breakdown of federal revenues by province to estimate the share of Equalization funding that comes from each province, and broke it down to a per capita basis.
Alberta families are contributing about $2,700 to cover this year’s record Equalization payments, and Ontario and B.C. families are on the hook for about $2,400 each at a time when every provincial government is under tremendous strain.  Fairness Alberta recently called for a rebate to contributing provinces until a new formula is worked out or Equalization is scrapped altogether.

“The 67% of Canadians in the contributing provinces were struggling with their own provincial services even before COVID-19,” said Dr. Bewick.  “Given the collapse of the wealth gap between provinces, the ‘have’ provinces should get the share of Equalization that came from their taxpayers rebated until serious reforms are made.”

As Dr. Bewick outlined recently in the National Post, even a 50% rebate would mean a bump to provincial budgets of $4 billion in Ontario, and $1.5 billion being returned to B.C. and Alberta as provincial responsibilities like health care come under strain.

Fairness Alberta is a grassroots, non-partisan, and non-separatist association of concerned citizens, aiming to increase awareness across the country related to Albertans’ major contributions to Canada, while also providing clear, factual information on unfair federal policies that are anticipated to undermine the prosperity of Alberta and other contributing provinces further.

Fairness Alberta previously released analysis and recommendations for reforms to Equalization and the Fiscal Stabilization program, with an overview of fiscal federalism as well at fairnessalberta.ca.

Our previous releases, interviews, columns, and presentations to the House of Commons Standing Committee on Finance can be found in the NEWS section of our website. For more information on Fairness Alberta, its mandate, and future plans, please visit our website at www.fairnessalberta.ca.

For further information or to arrange interviews, please contact:

Bill Bewick, Ph.D.
Executive Director
Fairness Alberta
Cell: (780) 996-6019
Email: [email protected]
Background Calculations:

Ben Eisen and Milagros Palacios recently published a reportshowing the “Great Convergence” in provincial fortunes since the 2015 energy downturn.  While the gap between the median ‘have’ and ‘have not’ fell from $5000 per person in 2015 to only $1600 now, Equalization payments grew by 23%. This year’s $20.9 billion windfall to 5 provinces with one-third of the population is budgeted for $25.1 billion in 4 years.

Using the contribution rates to federal revenues by province last updated here we broke down Equalization funding per capita as follows:
Related Topics:

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

More from this author
International / 33 mins ago

California’s soaring electricity rates strain consumers, impact climate goals

Crime / 2 hours ago

Former UK MP says ‘nothing was done’ with child trafficking information given to police, MI5

National / 4 hours ago

Chrystia Freeland’s WEF page deleted after she announces bid to replace Trudeau

Alberta

Alberta Premier Danielle Smith Media Roundtable from Washington

Published on January 21, 2025

By

From the YouTube channel of Alberta Premier Danielle Smith

Members of the media join Premier Danielle Smith for a round table on January 21, 2025.

Continue Reading

Alberta

Is There Any Canadian Province More Proud of their Premier Today…

Published on January 21, 2025

By

Yakk Stack  By Sheldon Yakiwchuk

 

Prior to Trumps inauguration event and announcement was made that Trump would not be imposing the 25% tariffs…

Which means, Canada seriously dodged a bullet here.

And while the Liberals will most likely frame this as, their success in showing, Bad Orange Man, that they’re tough and ready to burn down what is left of our economy, throwing Alberta under the bus, first…through a nuclear option…

Premier Smith rode this challenge out like the true champion we knew that she would be.

It’s hard to say if this was a legality matter in the grander scheme…or if the 25% tariffs would have truly been as big of an impact on the US…

One thing is clear, however…

Smith was ready to go to the tables with the Trump administration and opt for diplomacy over threats…which should be what we expect from our leaders.

And should these 25% tariffs have gone through…I’m more than sure a Plan B would have been brought out in civil conversations, over screeching rhetoric.

“She’s treasonous”, they screeched.

“She’s supporting her friends in Oil and Gas”, they relent.

“She should put Canada first”, they echo…

And let’s just address these…

Is Walmart beholden to Campbells soup? Fruit of the Loom? Kraft?

Or does Walmart sell products that helps keep their doors open?

Walmart is not beholden to any product…just like Premier Smith isn’t. We have 26% of our GDP – the largest portion – owed to Alberta O&G, something that we have a limited trade partner with, due to the Liberal – Anti-Alberta/Anti-O&G/Anti-Pipeline attitude that wants to spend us further in debt with unreliable and expensive “Renewables”.

What does Alberta get from renewables?

A higher cost for energy, in an affordability crisis, created by the same people who continue to push them…sounds like a terrible deal, for Albertans, and something a true leader would Not Favor.

When Walmart sits down to hash out a deal with Heinz, are they committing treason because they haven’t shown their allegiance to their own, ‘Great Value’ brand Ketchup?

No…other provinces have their own industries and resources, which they are free to continue developing independent of the federal government, as is suitable and supportive of their own economies…Alberta isn’t competing with them, nor Canada as a whole.

Alberta through industry and resource, actually supports Canada through a grand imbalance on “Equalization Payments”…

Image

As do we through paying 50% more into the Canada Pension Plan, than we actually get out of the Canada Pension Plan…to the tune of a $334 Billion Dollars.

And as for this “Team Canada”, horseshit…

The title Premier of Alberta, should hold some clues as to who Premier Smith should be advocating for…as she is the Premier of Alberta and Not the Prime Minister, nor leader in the Liberal Party that has created this fiasco, to begin with.

Rail, as they may…other provinces can’t cast a vote in her support, either way…

None of the other provinces, through Members of Parliament, nor through Premiers, came to support Alberta and our economy through a number of Federal Bills that railed on our provincial resources…

Worse yet…these hypocrites cash cheques from our province, while telling us how to diversify our economy…to which I’d state one thing unequivocally…

If we wanted to be a Have Not Province…like you are…we’ll come and ask you for your advice.

Until then…

I’ll hold my Alberta Flag Higher than my Canadian…

And be proud today, of having the only Premier in the country of Canada, worthy of any praise today!

Continue Reading

Trending

X