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equalization

Equalization



Federal equalization payments are the Government of Canada’s transfer program for addressing income inequality among provinces. Equalization payments enable less prosperous provincial governments to provide their residents with public ,phlebotomy training(external link) , , resume services(external link) that are reasonably comparable to those in other provinces, at reasonably comparable levels of taxation. The program was entrenched in the Canadian Constitution? writing service(external link) in 1982:

"Parliament and the government of Canada are committed to the principle of making equalization payments to ensure that provincial governments have sufficient revenues to provide reasonably comparable levels of public services at reasonably comparable levels of taxation." (Subsection 36(2) of the Constitution Act, 1982)

Equalization ensures that all Canadian province?s have access to revenues of at least $6,217 per resident to fund public services. Anything below entitles that province to an equalization payment. Ontario is presently at $6600 according to the graph while Alberta is at about $11,000. This has prompted calls by the Ontario Chamber of Commerce to change the formula so Alberta would pay more.

[+] 2008 Which Six provinces receive over $13.6 billion in Equalization payments



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