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Tingkai
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To find the Northwest Passage
Aug 2001 time: 13:19
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You're wrong Asher.
Equalization payments are a transfer of federal money to the provinces. Provincial governments do not contribute money to the payments.
From the CBC
"Equalization payments are money [the federal government gives to poorer provinces to help narrow the gap between the "have" and "have-not" provinces."
From Department of Finance Canada
Equalization payments "allows all provinces, regardless of their ability to raise revenue, to provide roughly comparable levels of services at roughly comparable levels of taxation."
The $8,500 for Alberta refers to the revenue the Albertan government could collect if it used all of its revenue generating
capabilities, in order words, its "fiscal capacity."
"The fiscal capacity of a province is a measure of its ability to raise revenues from more than 30 revenue sources." -- From Department of Finance Canada
Yes, Alberta's fiscal capacity includes oil revenues. That is the only reason why its fiscal capacity is so high. But oil revenues do not fund the equalization payments.
Since we're dealing with federal money, income taxes provide a good picture of the contribution residents of each province make to the equalization payments. We could also look at profit tax, but that would be skewed in favour of Ontario since most Canadian corporations are based in Ontario, even if they do business throughout the country.
quote: Originally posted by Asher
The Canadian government's website clearly disagrees with you.
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Good luck finding a quote that says I'm wrong.
quote: Originally posted by Asher
Your figures don't even add up to the total transfer payments paid... |
That's because you incorrectly believe that only Alberta and Ontario contribute to the payments. In fact, the payments come from all Canadian taxpayers. For example, money from taxpayers in Newfoundland goes to the federal government which then transfers a portion to the Nfld provincial government.
quote: Originally posted by Asher
I do mind sharing. Why should Alberta pay for Newfoundland's eqaulization for 52 years in a row? It's not a temporary measure, it's a constant money hole. Why did we even let Newfoundland in the country, anyway?
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Again, you don't understand the point of the equalization payments. Think of it as two parts of a city, one rich and one poor. The city collects money from all of its taxpayers and then spends it equally throughout all of the city.
"Transfers help ensure that all Canadians receive reasonably comparable levels of public services, wherever they live. They support important provincial programs – such as health care, post-secondary education, social assistance, social services and early childhood development. " -- Department of Finance Canada
There are problems with the current equalization payments system, but I think a starting point is for you to understand how the system works.
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Asher
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Calgary, Alberta
Nov 1999 time: 22:19
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quote: Originally posted by Tingkai
Equalization payments are a transfer of federal money to the provinces. Provincial governments do not contribute money to the payments.
From the CBC
"Equalization payments are money [the federal government gives to poorer provinces to help narrow the gap between the "have" and "have-not" provinces." |
Of course it comes from the FEDERAL Government. Duh?
It wouldn't make any sense if the Alberta government was directly giving money to Newfoundland, would it?
quote: "The fiscal capacity of a province is a measure of its ability to raise revenues from more than 30 revenue sources." -- From Department of Finance Canada
Yes, Alberta's fiscal capacity includes oil revenues. That is the only reason why its fiscal capacity is so high. But oil revenues do not fund the equalization payments. |
Bullshit.
To quote the CBC:
quote: Currently, the federal government takes back 70 cents in equalization for every dollar in energy royalties. |
quote: Since we're dealing with federal money, income taxes provide a good picture of the contribution residents of each province make to the equalization payments. We could also look at profit tax, but that would be skewed in favour of Ontario since most Canadian corporations are based in Ontario, even if they do business throughout the country. |
Are you unaware of just how much money the government collects in royalties? That's where a HUGE portion of this money is coming from and you're neglecting it completely in order to make your argument work.
quote: That's because you incorrectly believe that only Alberta and Ontario contribute to the payments. In fact, the payments come from all Canadian taxpayers. For example, money from taxpayers in Newfoundland goes to the federal government which then transfers a portion to the Nfld provincial government. |
You don't seem to have comprehended what I said. Of course ALL taxpayers pay towards this equalization fund -- but if these provinces get the money BACK, PLUS additional money from the "have" provinces, it's effectively the same as only having the "have" provinces pay for it, as they don't receive equalization payments at all. It's charity.
quote: Again, you don't understand the point of the equalization payments. Think of it as two parts of a city, one rich and one poor. The city collects money from all of its taxpayers and then spends it equally throughout all of the city. |
Duh?
That's the idea, you seem to misunderstand my argument it would seem.
quote: There are problems with the current equalization payments system, but I think a starting point is for you to understand how the system works. |
I know how it works, you're taking out gigantic chunks of the picture and even then it doesn't add up for you.
Look at your previously cited figures -- they don't even add up to the payments distributed, or even come close to it.
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Tingkai
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To find the Northwest Passage
Aug 2001 time: 13:19
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All right Asher, prove to me that the provincial governments pay for the equalization payments.
What is your problem with the numbers I listed. The equalization payments equal about $10.7 billion. If Ontario taxpayers provide 44 per cent of federal income tax revenues then Ontario finances $4.7 billion of the equalization payments (10.7 x 0.44). Albertan taxpayers provides 11 per cent of federal income tax revenues so Albertan taxpayers finance about $1.2 billion of the payments (10.7 x 0.11).
The remainder of the transfer payments would come from taxpayers in other provinces.
Instead of saying "you're wrong, you're wrong" why don't you state what you believe.
quote: Originally posted by Asher
Bullshit.
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Well that is insightful. Exactly what do you think is bullshit? Are you trying to argue oil revenues do not contribute to Alberta's wealth?
It is an attempt to ensure that all Canadians receive the same level of services from areas controlled by the provincial governments, e.g. education.
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Tingkai
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To find the Northwest Passage
Aug 2001 time: 13:19
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quote: Originally posted by Asher
I was unaware Saskatchewan and BC merged. When did that happen? |
Never said it did. 
quote: Originally posted by Asher
And the corruption argument is incredibly silly, considering the scandals and corruption the NDP just went through in BC.
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IIRC, No NDP MLAs in BC have been convicted for crimes, unlike the Devine government. Oh did I mention the Conservative MLA who was convicted of murder, Collin Thatcher, a crime committed while he was an MLA.
quote: Originally posted by Asher
Look at the GDP growth, look at the unemployment rates, look at the consumer price index...
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At 5.9 per cent, unemployment is well below the national average.
GDP growth projected at about 3 per cent for 2002.
Inflation 1.4 per cent (Mar - Apr) 3.6 per cent y-o-y (Alta's y-o-y inflation was 3.4 per cent.
Pretty good for a province that doesn't have much.
When the NDP under Tommy Douglas came to power, Saskatchewan was in massive debt. Douglas not only created a fiscal surplus, he also introduced the first medicare in Canada.
Last edited by Tingkai on 04-06-2002 at 08:12
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Asher
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Calgary, Alberta
Nov 1999 time: 22:19
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quote: Originally posted by Tingkai
IIRC, No NDP MLAs in BC have been convicted for crimes, unlike the Devine government. Oh did I mention the Conservative MLA who was convicted of murder, Collin Thatcher, a crime committed while he was an MLA. |
Whatever happened to BC's Premier? 
quote: At 5.9 per cent, unemployment is well below the national average.
GDP growth projected at about 3 per cent for 2002.
Inflation 1.4 per cent (Mar - Apr) 3.6 per cent y-o-y (Alta's y-o-y inflation was 3.4 per cent.
Pretty good for a province that doesn't have much.
When the NDP under Tommy Douglas came to power, Saskatchewan was in massive debt. Douglas not only created a fiscal surplus, he also introduced the first medicare in Canada. |
Yes, and to this day the quality of medicare deteriorates at a rapid rate while Chretien uses his budget to buy his private jet fleet.
What a wonderful thing Douglas gave us. 
Public medicare only works if the government is competent enough to maintain it. Obviously, that concept is out of the question with Chretien.
Personally I've had nothing but horrible experiences with Canada's healthcare, FAR worse than I got in the states.
1) I had to wait over a YEAR to have a cyst removed on my right wrist -- for the last 4 months before the operation it began pinching a nerve and cramped my hand minutes after I started writing. My dad had the same operation done a year or two earlier on the SAME DAY he saw the doctor when we lived in California.
2) My dad's appendix burst and he had to wait nearly 12 hours WITHOUT PAINKILLER before they could operate. People who have had an appendix burst know how PAINFUL it is. This was in Ontario, before you blame it on Klein. 
3) The public healthcare doesn't include dental care. I just coughed up $1500 for wisdom teeth removal. Thankfully my dad's company covers dental insurance... 
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