The Reform of Equalization Payments

Dan Usher

Canadian Public Policy, 2007, vol. 33, issue 3, pages 337-366

Abstract: A reasonable and fair interpretation of the mandate for equalization payments in Section 36(2) of the Canadian Constitution would differ from the present equalization formula in these respects: (a) transfers to the poorer provinces would be financed by transfers from the richer provinces rather than from the federal government; (b) entitlement to equalization payments would depend on provincial income rather than on a tax-by-tax comparison of the provinces' many tax bases; (c) for this comparison, provincial income would include revenue accruing directly to the provincial governments as well as the private income of residents of the pr ovince; and (d) compensation would be made for the exemption of provincial resource revenue from federal income tax. The most pronounced effect of these proposals would be to transfer the greater burden of equalization payments from Ontario to Alberta which is now, by far, the richest province.

Date: 2007
View list of references

Downloads: (external link)
http://economics.ca/cgi/jab?journal=cpp&view=v33n3/CPPv33n3p337.pdf Full text (application/pdf)
No access restriction except for the four most recent issues.

Related works:
Working Paper: The Reform of Equalization Payments (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:cpp:issued:v:33:y:2007:i:3:p:337-366

Ordering information: This journal article can be ordered from
http://www.utpjournals.com/cpp/

Access Statistics for this article

Canadian Public Policy is edited by James B. Davies

More articles in Canadian Public Policy from University of Toronto Press
Address: University of Toronto Press Journals Division 5201 Dufferin Street Toronto, Ontario, Canada M3H 5T8
Series data maintained by Prof. Werner Antweiler ().