Quote:
Originally Posted by Resolute 14
I don't think you understand how equalization works. All of the provinces pay into the pot. All of the provinces receive from the pot. It all comes from the tax revenue the feds collect. But some provinces - typically out west - pay far more into the pot than they receive back. Thus, "equalization".
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This is just the semantics fight. Technically no provinces pay in since the Federal tax treats all Canadians the same regardless of province of residence. Albertans do pay more in tax revenue than payments that are returned to the province in terms of services.
Both are correct. The reason for the fight in terminology is because when it is worded like the Provinces pay into the pot it people use it to say the Government of Alberta would have more money if there was no equalization when that isn't the case.
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