Governments love ‘general revenue’ line item — leading to spending flexibility but little transparency

Re: Gregory Cote's argument on equalization payments.

Mr. Cote is correct in the fact the federal government collects taxes and accounts for it as a general revenue line item. All politicians love this system because it allows them to spend money according to their party priorities rather than use directed taxes which would go to specific functions. The system is set up so the politicians and elites have maximum flexibility with little control or knowledge by the general population of where the money is going to.

My personal preference is for directed taxes, for example, fuel taxes go to transportation matters, environmental taxes (fees) go to environment work and so on. Obviously, governments need some flexibility so some funds should go into general revenue.

It is much easier to sell soft programs like massive immigration when the costs are covered from general revenues. If you paid a specific tax to support immigration everyone would notice the massive costs associated with the policy. The same can be said of foreign aid and many other programs.

Back to equalization. The money still flows from Alberta and Saskatchewan to Quebec and others by way of the general revenue fund. The belief that Mr. Cote disputes is in fact, correct. We do subsidize Quebec through the general revenue fund. The effect is the same; money is transferred from Alberta to Quebec as we subsidize their very generous social programs.

Roger Beebe Medicine Hat