Quote:
Originally Posted by MarchHare
Actually, Ontario isn't the baseline. Rather, the baseline is determined by taking the average revenue-generating power of Quebec, Ontario, Manitoba, Saskatchewan, and BC. "Rich" Alberta and "poor" Atlantic Canada aren't included in the equation.
|
Sorry, I was confusing the new report on how to fix the fiscal imbalance which recommends that Ontario per capita revenue raising ability be used as the top up baseline. Meaning that no province gets topped up above the lowest average per capita revenue raising ability of the lowest non-equalization receiving province.
The new report is interesting, it recommends that 50% of resource revenues be calculated in the revenue raising abilities of the provinces. This will affect SK and NFLD the most as their resource revenues will limit the amount of top up they receive.
Another recommendation is that property values should be calculated in the revenue raising abilities of the provinces. This means that BC will almost certainly be moved to a 'have' province.