The Wildrose Party recently released their report on the need for equalization payments to be reassessed in order to be fair for all provinces.
The new assessment won’t be completed until 2019 but the official opposition is hopeful that the NDP will take their findings into consideration leading up to those negotiations.
The equalization program allows the federal government to make payments to less wealthy, or have-not provinces, is included in the Constitution Act of 1982 and began in 1957. The formula is based solely on fiscal capacity, which is defined as the potential a province has to raise taxes from its citizens.
In order to make the equalization calculations fair, the Wildrose report aims to provide solutions to some of the issues surrounding those calculations.
Watch as I explain the six key points they identify that would improve the program.
Alberta has sent $20 to $28 billion more to Ottawa than it receives back and from 2007 to 2014, it has made a net contribution of $190B.
It’s going to be an uphill battle to get the NDP to consider some of these recommendations and for other provinces to re-evaluate, but there’s no denying the system is unfair so a revamp of the program is overdue.
As Dr. Atkins suggests, updating and modernizing fiscal arrangements in place for nearly half a century would be an important step to improving the lives of Albertans and the entire Canadian economy.