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  • Ontario's middle and working class families are losing ground August 15, 2017
    Ontario is becoming more polarized as middle and working class families see their share of the income pie shrinking while upper middle and rich families take home even more. New research from CCPA-Ontario Senior Economist Sheila Block reveals a staggering divide between two labour markets in the province: the top half of families continue to pile […]
    Canadian Centre for Policy Alternatives
  • Join us in October for the CCPA-BC fundraising gala, featuring Senator Murray Sinclair August 14, 2017
    We are incredibly honoured to announce that Senator Murray Sinclair will address our 2017 Annual Gala as keynote speaker, on Thursday, October 19 in Vancouver. Tickets are now on sale. Will you join us? Senator Sinclair has served as chair of the Truth and Reconciliation Commission (TRC), was the first Indigenous judge appointed in Manitoba, […]
    Canadian Centre for Policy Alternatives
  • How to make NAFTA sustainable, equitable July 19, 2017
    Global Affairs Canada is consulting Canadians on their priorities for, and concerns about, the planned renegotiation of the North American Free Trade Agreement (NAFTA). In CCPA’s submission to this process, Scott Sinclair, Stuart Trew and Hadrian Mertins-Kirkwood point out how NAFTA has failed to live up to its promise with respect to job and productivity […]
    Canadian Centre for Policy Alternatives
  • What’s next for BC? July 4, 2017
    Five weeks ago the CCPA-BC began a letter to our supporters with this statement: “What an interesting and exciting moment in BC politics! For a bunch of policy nerds like us at the CCPA, it doesn’t get much better than this.” At the time, we were writing about the just-announced agreement between the BC NDP […]
    Canadian Centre for Policy Alternatives
  • Could skyrocketing private sector debt spell economic crisis? June 21, 2017
    Our latest report finds that Canada is racking up private sector debt faster than any other advanced economy in the world, putting the country at risk of serious economic consequences. The report, Addicted to Debt, reveals that Canada has added $1 trillion in private sector debt over the past five years, with the corporate sector […]
    Canadian Centre for Policy Alternatives
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Archive for 'equalization'

Quebec Tuition: Between a Rock and Hard Place?

In the context of student protests over Quebec tuition fees, my friend Luan Ngo has just written a very informative blog post on Quebec’s fiscal situation. While I encourage readers to read his full post, I do want to use the present space to make mention of three important points he makes: -On a per […]

Wall Strikes Out on Fiscal Federalism

Saskatchewan’s Brad Wall recently issued a statement exhorting his fellow Premiers to blaze largely unspecified new trails on healthcare, Employment Insurance and Equalization. Unfortunately, he misses the ball on all three issues. Greg Fingas and Verda Petry have already refuted Wall’s call for further healthcare privatization. On Employment Insurance, Wall implies that eastern Canadians are […]

Ontario Budget: Federal-Provincial Relations

My post on the night after Ontario’s budget hit the key features. However, the budget had a couple of other interesting aspects from a federal-provincial perspective. Childcare Funding Some progressive voices trumpeted the provincial budget’s allocation of $63.5 million annually to replace discontinued federal funding for childcare spaces. While the Ontario government finally made the […]

Equalization Bailout?

I have always grudgingly admired the Canadian Taxpayers Federation’s ability to manufacture news, but last week’s op-ed by Kevin Gaudet takes the cake. It launches an attack on Equalization from an utterly false premise: Next year, federal equalization payments to the provinces are expected to decline anywhere from 10 to 15%. As a result, some […]

The Star on Equalization: Another Reality Check

The lead editorial in today’s Toronto Star essentially restates McGuinty’s case more coherently than yesterday’s reports. The supposed problem identified is that, if Ontario becomes a “have-not” province, it would continue to pay more into Equalization than it would get out. This scenario is not nearly as strange as The Star makes out. Equalization has […]

McGuinty on Equalization: A Reality Check

For a while, the Ontario Premier was looking quite reasonable in his dispute with the federal government. As Jim Flaherty charged that Ontario’s economic woes reflected a lack of provincial corporate tax cuts, Dalton McGuinty correctly responded that a lower rate of tax on profits would entail a large fiscal cost and provide little assistance […]

Lawsuits Galore

While the Saskatchewan government’s decision to take the federal government to court over Equalization has captured more headlines, the Saskatchewan government is also helping to finance legal action against the federal government’s handling of the Canadian Wheat Board: Sask. backs CWB lawsuit The Leader-Post (Regina) Thursday, June 14, 2007 Page: D1 / FRONT Section: Business & Agriculture […]

Wading through the Equalization Swamp Armed Only With 1105 Words

This post was inspired by my wife, a non-economist (thankfully) who asked me the other day for my opinion on the endless equalization debate. My answer was simple: follow the politics. As every insider knows, the excommunication of Bill Casey, an MP from Nova Scotia, is only the tip of the iceberg of discontent over […]

Reflections on the “fiscal imbalance”

A year ago, I was concerned that the Harper government, in the name of “fixing” the “fiscal imbalance”, would endorse ideas coming from the Canadian Council of Chief Executives and the CD Howe Institute for a radical decentralization of fiscal federalism. This would have entailed eliminating the non-equalization transfers to the provinces (that fund health […]

Caledon Institute Budget Commentary

http://www.caledoninst.org/Publications/PDF/622ENG.pdf “There are several positive measures, most notably the Working Income Tax Benefit, the Registered Disability Savings Plan and the proposed changes to the Equalization program.  Other provisions, like the child tax credit, are a large cup of wasteful spending.  The funds could have been far better spent on an increased Canada Child Tax Benefit, […]

Politics and the “fiscal imbalance”

Having read the electoral tea leaves, Stephen Harper decides to take the “fiscal imbalance” issue off the table, to be replaced, it would appear with the new “green plan”, an issue unmentioned in the Tory platform, but one that they apparently think will get them better milage than the minefield of federal-provincial relations. When Harper […]

What’s New on the “Fiscal Imbalance”?

The Institute for Research on Public Policy (IRPP) organized a breakfast forum in Ottawa today (September 12), to launch a special issue of Policy Options on the so-called “fiscal imbalance” issue. A moderately decentralist (France St Hillaire) to distinctly pro province/ right of centre (Tom Courchene and Gilles Paquet) panel of economic experts lamented the […]

Fear of Sharing

All of this equalization talk has Preston Manning worried. While Alberta Premier Ralph Klein would have just told the rest of us to keep our grubby hands off Alberta’s wealth, Manning and his co-author Fred Kerr take 1200 words to explain to us that Alberta is already sharing as much as it can. Let’s take […]

Charest says give me more money (no strings attached, please)

Quebec wants big, new equalization dollars from Ottawa. Why equalization? Because it is not conditional – Charest could use new money for tax cuts or any way he wants. Did I mention a Quebec election is coming up next year? The Globe reports: Quebec maintains the key to solving the so-called fiscal imbalance between the […]

Alberta’s Oil and Quebec Seperation

Rafe Mair looks back at history, then contemplates high oil prices and resulting tensions in Confederation, in his Tyee column: First some history. With the arrival of the Organization of the Petroleum Exporting Countries (OPEC) in 1965, the oil price fix has been in and we all know about the crisis in 1974 that brought […]

Greasing the wheels of federalism

The Globe and Mail's John Ibbitson (subscriber access only) thinks the outlines of a solution to the alleged "fiscal imbalance" has been found through a mix of more equalization plus increased program-related transfers to the provinces: The O'Brien report [aka the Expert Panel on Equalization and Territorial Formula Financing, appointed by former Finance Minister Ralph […]

Equalization – A Family History

Dalhousie's Lars Osberg reflects on his family in relation to the equalization program. This piece was published in the Halifax Mail-Star and Chronicle Herald Op-Ed, April 6, 2005 and merits a reprint here in the context of much bickering among the premiers: When my parents were growing up in Alberta in the 1930s, it was […]

Alberta, Equalization and a Little Irony

http://thetyee.ca/Views/2006/06/07/AlbertaEffect/ Over the years, Alberta Premier Ralph Klein has rarely missed an opportunity to poke a finger at the equalization program and to re-assert that Canada better keep its hands off Alberta's resource wealth. For King Ralph, it makes for great theatre and even better politics. Klein recently threatened to pull out of the equalization […]