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.