Wednesday, July 20, 2011


It is increasingly clear that equalization is not working. I think it probably needs to be abolished and the provincial governments given more tax points. Fadcinating how dalton mcliar has truned Ontarion into a have not province.

TORONTO — In just three years, Ontario has become the second-largest recipient of equalization payments in the country, with $2.2-billion set to flow into its “have-not” coffers this year.

Only Quebec, which takes in $7.8-billion in such payments, receives more.

More ominously, Ontario’s burgeoning take threatens to destabilize Confederation, says one of the country’s leading academics, by creating problems for Quebec, Manitoba and the Atlantic provinces.

Tom Courchene, an economist at Queen’s University and a senior scholar at the Institute of Research on Public Policy says those other have-not provinces will find themselves increasingly squeezed out of a fixed pot of equalization money as Ontario takes a bigger share of the pie.

Federal equalization payments to Ontario have risen 534% in the two years since the province received its first payment. The program has been capped at Canada’s GDP growth since 2009.

1 comment:

Anonymous said...

They’re pushing for change here. And as Ontario’s take grows, that may put even more pressure on other provinces, who may escalate their argument with the federal government, that the federal government should stop the artificial (limit on) growth of equalization.

The above is wrong to think the problem is with the Cap on equalization. Rather, the problem is with the Ontario Liberal government letting it come to this in the first place imposing all sorts of harmful measures to slow, distort and harm the its economy.

Equalization payments seem to cover up all the red ink the Liberals spill budget after budget.

Ontario's debt to GDP is way out of hand and when they're not making it worse through needless interventions, they play everything off like business as usual.
Ontario's debt to GDP is worse than the state of California.

Had they been elected and done nothing their entire time in office the province would of fair better than it has now.
Which is why I laugh when they attack the previous PC government for their woes. When the PC government inherited a far worse off situation during a far worse off time and made good with what they had without pummelling the province with tax hikes, new liabilities and entitlements.

I Support Lord Black