I came across the following article
This year in Canada exactly two provinces – Alberta and Ontario – will contribute to the federal equalization payment pool, while the other eight provinces and three territories are on the receiving end. Ontario is quickly moving towards becoming a have-not province which will leave only Alberta footing the entire federal equalization bill. According to Stats Canada, Alberta CONTRIBUTES about $3,000 per person per year. Provinces like PEI and New Brunswick RECEIVE $1776 and $1537 per person respectively. This means that a family of four living in Alberta earning $30,000 dollars a year will pay $12,000 to other p! ! rovinces; $3500 will go towards community improvements for a family of two earning $150,000 per year in PEI.
I was quite shocked to learn that certain areas in Canada are funding other less well off areas. This sounds normal ie we all pay our tax and everyone benefits but this is not what is happening. For instance, if you live in one state you pay $3000 a year which gets given to families in another state.
And what are “equalization payments”? Sounds a bit like communism to me.