A University of Calgary professor believes there are certain misconceptions when it comes to equalization payments in this country.
One of those is that each province dips into its coffers and contributes something to the pot that the federal government then distributes to other provinces which isn’t the case. The equalization money comes from general tax revenue that the federal government makes and none of the provinces contributes directly to that.
Political Studies Professor at the U of C Doreen Barrie says the last time Alberta received equalization payments was in the 60’s but believes most people support the program. She adds it’s easy for people to get riled up if people don’t have all the facts, specifically here in Alberta.
The program is reviewed every five years and redistributes funds utilizing a pre-set formula to provinces that require assistance.