alt Hacker NewsThey're called "Equalisation payments". Certain provinces pay them, like BC, Alberta, and Ontario, and then other provinces receive them.
In 2023, the federal government spent $24.0 billion including an estimated $3.3 billion from Alberta, which has not received equalization payments since 1964/65. From 2007 to 2022, Albertans’ net contribution to federal finances was $244.6 billion, more than five times the net contribution from British Columbia or Ontario, the only other two net contributors.
Albertans’ also disproportionately contribute to the CPP. From 1981 to 2022, the amount Albertans paid into the program, over and above what retirees in Alberta received in CPP payments, was $53.6 billion, approximately six times greater than the net contribution of B.C., the only other net contributing province.
Replies
No province pays equalization payments. They come out of the federal government's general revenues.
https://en.wikipedia.org/wiki/Equalization_payments
This indicates Alberta (and Ontario and BC) don't pay higher tax rates. The equalization payments just come out of the general budget.
The US isn't all that much different. Wealthy states pay more per capita because it's an income tax, not a per capita tax. Looks like ~13 states pay more than they get back, with Massachusetts paying relatively more (-$5000/person) and New Mexico recieving relatively more (+$15,000/person).