If you look up the definition of the word equalization you’ll find more than one meaning. For audiophiles it‘s the process of adjusting the balance between frequency components within an electronic signal. The equalization in the news nowadays has to do with another definition that means to make equal by minimizing the tax burden. In Canada, equalization is a federal program, paid out of federal revenues, that pays out money to provinces whose ability to raise revenues is below a national threshold using federal government formulas. If you ask how it works, the answer is akin to asking about Moir and Virtue’s personal relationship. The answer: it’s complicated. Equalization payments are transferred from Ottawa to less wealthy provinces, called “have not” provinces while those who don’t receive payments are called “have” provinces”. Currently, by the measuring devices used, the “have” provinces are Saskatchewan, Alberta, British Columbia, and go figure, Newfoundland and Labrador. The remaining six share over $18 Billion with Quebec getting the lion’s share, $11.7 Billion. Our next door neighbour, Manitoba, gets $1.7 Billion. The federal government has announced it is extending the current equalization formula for another five years which doesn’t make our premier happy. Considering pipelines, carbon taxes, cannabis, and now equalization, this great confederation of ours never seems to have a dull moment lately.
That’s Coffeetalk. I’m Vic Dubois.