David A
Senior Member
Perhaps, but the big flaw in the equalization argument is it is not money collected by the Alberta government sent to Ottawa. The Federal government sets its tax rates which are the same in Alberta as in every other Province. Likewise Alberta sets its own provincial tax rates independently like every other province does and all the money Alberta collects from that stays in Alberta. So equalization does not contribute to the provincial deficit.J.C. That's a lot of money. Has the UPC screwed up that badly or do they want to use the deficit as ammunition to change the transfer payment agreement relationship with Ottawa and the other provinces? Migration into Alberta didn't create those kind of deficit forecasts. Not everybody that moved to Alberta is unemployed and using the health care and education system pro bono as the UPC would have the electorate believe.
As for other Federal transfers, I really doubt a higher deficit of a poor rich province with more room to adjust revenue will be much of an argument for the Feds to increase them. Although a number of other provinces with less room to increase their revenues have higher deficits now too, so that may be more persuasive.




