Quote:
Originally Posted by GP_Matt
I am not sure that Quebec spending more money will translate into higher equalization payments. Unless you are speaking in a more macro sense in that the new policies will slow the growth of the Quebec economy relative to the rest of the country so that they will receive more in their new poorer state.
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Quebec spending more money will result in an increase in their provincial tax rate to pay for the added expenditures. Increased taxes will result in a slower economy. A slower economy means higher equalization payments.