Monday, November 3, 2008

Ontario and equalization

The concept of the Federal equalization program makes sense. It ensures that all Canadians, regardless of how poor the province, receive roughly equal social support.

The trouble is that Ontario, the only province never to get equalization, looks to be entitled to it in the very near future.

Ontario points out it has paid out (meaning Ontario taxpayers have paid out) $10,000,000,000 in the last five years to other provinces so why shouldn't Ontario get help now Ontario needs it.

The Feds point out that if Ontario gets support almost everyone else will and a wealth redistribution system where everyone gets can't work.

Perhaps the lesson here is that equalization is too rich -- perhaps only the poorest two provinces should get help (or something like that).

What is sure is that if the goalposts are shifted to ensure Ontario is shut out there will be a real uproar.

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