I believe what has been done is to ‘fix’ the whole stupid equation. Past Prime Ministers have continuously signed one-off agreements that has resulted in the equalization becoming what it was — unmanageable and subject to election influence.

As far as Alberta, Ontario, as per McSqinty’s demand for fairness, Ottawa has agreed to return to a ‘FIXED’ funding amount per capita. Alberta had been the province that was being screwed the worst given it was the province in receipt of the lowest per capita funding transfer (for healthcare & post-secondary education for example), followed by Ontario.

Now (or by 2014?) every province will receive the same level of funding transfers, in order to ensure an equity of service provision, regardless of their fiscal capacity.

Ed the Hun

What is the objective? Is it merely to buy votes? There is lots of spending but to what purpose? I believe this is the point the Liberals are trying to make.

Most of the transfers to provinces are going to Quebec, Ontario, and Alberta. Two of these provinces are the wealthiest in Canada. It appears that this is regional “he who has gets” budget. The poorer provinces, such as Nova Scotia actually will get less unless they succumb to federal blackmail and agree to tear up the off shore accord.

Many of the tax cuts are aimed at groups who may be happy to receive them but probably need them less than others. For example, young people just starting out with large education debts or relocation costs get nothing. While senior couples, who often own their own homes, and are comfortable will get a significant tax cut. Again it seems that “he who has gets.”

The $1000 to $500 tax incentive to get people off welfare is a joke. Anyone who has retired will understand that the costs associated with working are so much higher that the amount is useless.