Quote:
Originally Posted by crazy_eoj
You said their spending is based on revenues.
They count transfers as revenues.
So which is it?
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I did? This was my post:
Quote:
Originally Posted by Makarov
Smith clearly has no clue how equalization payments work. Quebec's expenditures have absolutely nothing to do with how much it recieves in equalization transfers. It is entirely based on revenues.
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Perhaps I wasn't clear in the above quoted post. I meant that equalization transfers are based entirely on (potential) provincial revenues. If a province would obtain below average revenue by using a calculated average Canadian tax rate, it recieves transfer payments. Therefore, how it spends its money, or indeed, what its actual tax rates are, are irrelevant.