I am tired of Jason Kenney distorting information about transfer payments. Yes, the formula he and Harper created is flawed, but it calculates who receives the payments, not who pays them.
Neither Alberta nor any other province pays the transfer payment out of its provincial coffers. The money comes from federal income tax. It is possible to calculate how much money comes from federal taxpayers in each province, but that does not mean it come out of provincial coffers. Indeed, given that the average income in Alberta is down from what it used to be, Albertan federal taxpayers are likely paying less toward transfer payments than they used to.
Yes, the transfer payment formula is flawed and needs to be fixed. We need to work on solving the actual problem, not making political hay out of it.
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Feel free to reply to any comment by clicking the "Reply" button.But...the numbers are out there. I don't know what they are...but a total of individual and corporate income tax that flows to the federal government from each province can be compared to transfers back. I think there is a lag in the numbers and also some other things that may be distorting it. I'm not even sure. But when a province is still a net contributor ("have" province) and their economy is in shambles perhaps something is wrong with the formula.
Robeh
Level 4
Dec 1, 2019
0
I certainly agree about the flaws in the formula. Alberta is a clear demonstration of this. There is always a lag in the numbers, but I think we can get closer to immediate reality than we are. However, the political spinning that Jason Kenney iis using does not help and serves to further the sentiment that somehow the East wants to do in the West.
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