No oil, Quebec? Fine. No equalization payments (OP-ED)

Equalization does not come from Alberta, it comes from the taxes Quebec pays to Ottawa. Equalization means that Quebec gets a refund of SOME of the taxes it pays.

Quebec contributes MORE to the general revenues of the federal government than Alberta, more than $40 billion a year.

Think of equalization like the "old age" programs at your local pharmacy... Old people, by the virtue of being old and because old people are usually poorer than working adults, get a special card that gives them a 5-10-15% rebate on their purchases. The rest of us have to pay full price for the same items.

Well nobody complains that old people are gaming the system, they are still paying for their purchase but they pay slightly less than younger people who are below 65 years of age.

Now Quebec and other have-not provinces are also poorer than some other provinces, which means that they also get that special card which entitles them to a rebate on their income taxes, just like old people at the pharmacy. It does not mean that Quebec does not pay income taxes to Ottawa, it only means it pays a bit less because it is poorer.

So, at the end of the day, Quebec contributes more in taxes than what it gets in equalization, which means the Quebec receives its own money in equalization!

The thing that MOST OF YOU don't realize is that it is technically possible for all 10 provinces to receive equalization payments... When that happens, then WHO is paying for equalization???

Equalization is not a transfer of money from Alberta to the rest of Canada, it is a tax rebate returned to the provinces on the taxes they have already paid to Ottawa because they are poorer than some provinces.

/r/canada Thread Link - m.torontosun.com