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Tom Monto

There is no Equalization Fund that Alberta pays into

The federal government collects taxes, it then distributes federal government money to the provinces as it sees fit, in practice according to an equalization formula agreed to by the provinces.


No money goes from Alberta to a federal government fund. The Alberta government dos not pay into an equalization fund. There is no fund.


(Such a claim is like the old days when Alberta charged a health care premium - the money did not go to healthcare -- it went into general revenue and then was spent as the government decided. Part of it went to pay for special white sand flown in from Saudi Arabia for the rich-guys' Kananaskis golf course. Through the healthcare premium, the government actually imposed a modified head tax but called it a healthcare insurance premium to make it acceptable.)


Money does go from Alberta tax-payers and Alberta corporations to the federal government. This money does not go into fund to be "equalized " out among the provinces. If there was no equalization program, the federal government would still charge the same taxes. Like store prices we are used to paying them. if a store got cheaper rent it would not drop its prices necessarily - no, not if consumers were still buying at the established prices. Same with taxes.


And Alberta currently gets money from the federal government. in 2018 it received $8B from the federal government. See the Alberta government website "Alberta government revenue." The Alberta UCP-ers may want more money to come to Alberta but it is wrong of them to say that Alberta does not get anything.


Apropos this "more more" thing -- Alberta already has pipelines, else how could we cut off the taps to BC. Those taps are pipelines. So really the government does not want a pipeline --it wants another pipeline.


Logically it seems it will then want another -- and another -- and another. Where will it end?


The Alberta government says Alberta has no money But just look at the expensive houses and the monster pick-up trucks on our roads. Oh right. it had money then it spent it on these things and now it does not have money., Oh I see. It is rich; it just does not have any money.


And the government while saying it has no money gives tax cuts to rich Albertans -it keeps income tax among the lowest in the country. So it turns its back on a source of money used by other provinces and then calls on the federal government to give it more money. Isn't this like trying to "eat your cake and have it too"?


To which the federal government answers, we give you as much as you deserve to get ($8B in 2018). You have cut your taxes so don't then come to us asking us to bail you out.


In other words it responds to Alberta wanting to "eat its cake and have it too" it says "you made your bed, now lie in it."

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