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Alberta Oil - - CONTENTS -

The PTAC pres­i­dent speaks; a B.C. LNG plan gets a much-needed shot in the arm from Ja­pan; and the truth about equal­iza­tion pay­ments

THAT’S THE NUM­BER OF YEARS BE­TWEEN EACH

sched­uled re­view of Canada’s equal­iza­tion pro­gram.

The pro­gram—there is no equal­iza­tion “fund”—re­dis­tributes rev­enues based on a for­mula that is both sim­ple and com­plex. The pro­gram’s in­come dis­tri­bu­tion is based on a three-year av­er­age of all ten prov­inces’ and three ter­ri­to­ries’ po­ten­tial rev­enue per capita. Cur­rently, fed­eral tax­pay­ers in both the “have” prov­inces of Al­berta, B.C., New­found­land and Saskatchewan, and the six “have not” prov­inces will con­tinue to pay the cur­rent “have not” prov­inces for at least an­other year, as 2016 to 2017’s cal­cu­la­tions still fac­tor in the boom years of high oil prices.

To be clear, the prov­inces and ter­ri­to­ries don’t pay each other any­thing. The fed­eral gov­ern­ment trans­fers money raised through fed­eral taxes to “have not” prov­inces. Rich fed­eral tax­pay­ers in Nova Sco­tia will see more of their money go to the gov­ern­ment of Nova Sco­tia in fed­eral trans­fers than less well-to-do fed­eral tax­pay­ers in Al­berta would pay to Nova Sco­tia.

Calgary Mayor Na­heed Nen­shi is an out­spo­ken critic of pro­vin­cial lead­ers who op­pose oil pipe­lines while their prov­inces are net-re­cip­i­ents of the fed­eral gov­ern­ment’s equal­iza­tion trans­fer pro­gram

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