Ontario A Have-Not Province?

[troutman]

http://www.reportonbusiness.com/serv.../Business/home

Ontario will soon be a have-not province, and is poised to start collecting equalization payments in two years, economists at Toronto-Dominion Bank say.

Ontario's economy is struggling to deal with the compounding effects of high energy costs, a strong loonie, and now a U.S. downturn, the economists note in a paper published Tuesday morning. But it's the rising prosperity of the energy-rich provinces, and not Ontario's actions, that have turned Ontario into a have-not, their paper argues.

[Azure]

Awesome.

How many billions more will Alberta have to give up now?

[BlackArcher101]

We must separate!

[Resolute 14]

Originally Posted by Azure

Awesome.

How many billions more will Alberta have to give up now?

We're too busy paying to keep Quebec afloat. Let Saskatchewan pay for Ontario.

[Julio]

Sask is giving $ to Manitoba...they are the pretty much the biggest provincial 'welfare bum' in Confederation.

[Iggy's Forehead]

But, but...I thought Ontario ISSSS Canada!!!11!!

[Iggy's Forehead]

Originally Posted by Julio

Sask is giving $ to Manitoba...they are the pretty much the biggest provincial 'welfare bum' in Confederation.

New Brunswick, Nova Scotia and PEI say hi.

[llama64]

Oh goodie.. yet another reason for Easterners to hate Albertans (and vice-versa).

When your economy is based on production, and then joins into a global market... When the energy market experiences a downturn, Canada had better watch out.

[flip]

Does this now mean AB is the lone Have province? Have BC, Sask or Que improved any since I was in school because it used to be AB, BC and ON then just AB and ON. If it is now just us then wow.

If so the whole Have/Have Not idea needs to be scrapped. I don't think you can have 1 supporting the other nine. It just isn't fair.

[IntenseFan]

Now that resource revenue is counted, the have provinces include Alberta, B.C. and Sask. They all have major resource revenues (oil, gas, logging, uranium, etc.).

[Ironhorse]

Great. Now we get to subsidize their arses, while they still determine who forms our next federal government. Something akin to the inmates running the asylum.

[Julio]

Originally Posted by Iggy's Forehead

New Brunswick, Nova Scotia and PEI say hi.

NS gets less of it's funding from the feds than Manitoba (34.4% compared ti 36.7%. NB and PEI (39.4 and 41.1% respectively) do get more, but my ire comes from Manitoba not having to count it's hydro resources while Sask (and Alberta as well) have to count their non renewable resources, which is the main reason that Sask is a have province while Manitoba classified as a have not province.

[MarchHare]

If so the whole Have/Have Not idea needs to be scrapped. I don't think you can have 1 supporting the other nine. It just isn't fair.

That's not really how equalization works -- taxpayers in every province pay for the program, but some provinces receive a greater benefit from it than others.

Equalization is when the federal government redistrubutes money to the provincial governments of the "have not" provinces in such a manner that each province can spend roughly the same on services such as healthcare and education on a per capita basis. It's beneficial to all Canadians that this system exists. Without equalization, PEI would have third-world quality healthcare and Alberta would have a much harder time finding educated workers from other provinces to help with our labour shortage.

[Iggy's Forehead]

Originally Posted by MarchHare

That's not really how equalization works -- taxpayers in every province pay for the program, but some provinces receive a greater benefit from it than others.

Equalization is when the federal government redistrubutes money to the provincial governments of the "have not" provinces in such a manner that each province can spend roughly the same on services such as healthcare and education on a per capita basis. It's beneficial to all Canadians that this system exists. Without equalization, PEI would have third-world quality healthcare and Alberta would have a much harder time finding educated workers from other provinces to help with our labour shortage.

!!!!!!!

[Dan02]

How was a province which was home to the leafs ever considered a "have" province?

[Iggy's Forehead]

Originally Posted by Dan02

How was a province which was home to the leafs ever considered a "have" province?

Simple, really. They "have" a crappy hockey team.

[Tron_fdc]

Well, the obvious solution to this problem is to spend more, and make Alberta a have-not province as well.

Vote in the Rhino party!! Dome over fish creek here we come!!!!

[Ozy_Flame]

Originally Posted by Tron_fdc

Well, the obvious solution to this problem is to spend more, and make Alberta a have-not province as well.

Vote in the Rhino party!! Dome over fish creek here we come!!!!

Unfortunately the equalization payments are based on gross revenue, not net income; we are generating revenue above a certain amount that makes us contribute more to the plan than most other provinces. With whatever net we have left over, then we can spend, but spending more will not give us any sort of advantage, unfortunately. That would come from our own coffers, not the federal governments.

I was thinking the same thing to, where Alberta could massively spend and qualify as a have-not province, and keep getting that money back, but it doesn't quite work like that! =(

[HotHotHeat]

This will do wonders for Toronto's real estate market, which locals will still tell you is the strongest in the country.