Alberta Premier Jason Kenney said he was “delighted” that all premiers agreed on the request.
The fight over equalization payments has raged for generations, one economics professor said.
Before using the threat of equalization payments as a "poke in the ribs" to provinces such as British Columbia and Quebec, perhaps the petroleum industry should rethink its own dependency on subsidies. It should be aware that it, too, is vulnerable to budgetary policy.
The Ontario government claims that it's shortchanged because Ontarians send more federal tax dollars to Ottawa than what the federal government directly spends in Ontario. But does this prove that Ontario's government deserves more money from the federal government?
Instead of demanding more money from the federal government, Ontario could a) cut provincial spending or b) reform everything from labour laws to regulation to tax policy and electricity policy, to unleash the economy and thus produce more at-home tax revenue or c) both. Ontario should not expect continued billions in annual equalization payments. While the exact decline in equalization is unknown -- it depends on how badly the resource economies and their provincial treasuries are hit -- Ontario should face reality and act accordingly.
The move to per capita transfers means that health care transfers will not be based on need, but on population alone. We know there are a number of provinces with smaller populations and many with a disproportionately large number of seniors -- it will cost those provinces more in order to deliver the care they need, when they need it.
From the fur trade to fisheries and forests, Canada was built on the toil and sweat of those who wanted to prosper. But these days, it's harder to create opportunity. And sometimes, government is to blame. The latest example comes from Nova Scotia.
in Canada's Equalization program, "have" provinces such as British Columbia, Alberta and Saskatchewan send billions of dollars to Ottawa that are in turn handed to chronic overspending "have-nots" like Quebec. It creates a system where the reward for prudent fiscal management is bailing out those who couldn't care less. In other words, we in B.C. pay so they can play.