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dismalafyesterday at 6:36 PM2 repliesview on HN

> Alberta does not "pay into" equalization payments. Provinces do not "send money to other provinces". That's simply not how the program works.

You're being pedantic.

Income from Alberta workers gets taxed and sent to other provinces or citizens living in other provinces via various federal programs. If we were a separate country, all that money would stay in Alberta.

Splitting hairs over the precise "how" doesn't change the fact it's money siphoned out of Alberta to other provinces.


Replies

jeromegvyesterday at 11:08 PM

> If we were a separate country, all that money would stay in Alberta.

Yes. But you’d have to pay for your own border, army, customs, etc, etc.

By that logic every single province could separate, become a country, and then what? Is that supposed to be more cost efficient? Would the economy and free market between each province better? Would Alberta oil be worth the same price without having pipelines going through every province?

And then, why not have Calgary separate from Alberta. After all money from Calgary pays for roads in Edmonton and smaller towns. Surely we don’t want money leaving Calgary, if Calgary was independent, Calgary could keep its own money and not have their money “siphoned out”.

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stackghostyesterday at 7:10 PM

>Income from Alberta workers gets taxed and sent to other provinces or citizens living in other provinces via various federal programs. If we were a separate country, all that money would stay in Alberta.

And you'd be incurring lots of new expenses like border controls, national security, etc. The last estimates I saw were that the total equalization payments attributable to Alberta were about a tenth of the cost of federal government services provided to Alberta.

That is to say Albertan taxpayers would be on the hook for an additional 25 billion dollars annually, or so.

>Splitting hairs over the precise "how" doesn't change the fact it's money siphoned out of Alberta to other provinces.

It's not pedantic, you're just factually incorrect. It's money that all Canadians already pay to the government (because it's money from federal income tax). There's no line item in the Alberta budget for "equalization payments".

If we deleted the entire Equalization Program tomorrow, we'd all still be paying the same taxes.

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