Quote:
Originally Posted by crazy_eoj
So you are stating they do not count equalization payments as general revenues?
You might want to check that.
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They measure provincial fiscal capacity by using five tax bases: personal income tax, business income tax, consumption tax, property tax and natural resources. 50% of natural resource revenues are excluded in determining each province’s fiscal capacity.
That determines how much revenue per capita each province is able to raise. That number varies by province...some have higher fiscal capacities than others.
Those per capita revenue figures are then compared to the national standard which is now based on the average incomes of all 10 provinces. The Atlantic provinces fall under the Atlantic Accord.
Whether a province receives equalization, and how much it receives, is based on its comparison to the national standard. If you are below the national standard, you receive equalization payments. If you are above the national standard, you do not receive equalization payments.