Canada

Is Alberta Being Treated Unfairly?

Much of Alberta’s frustration comes from how the equalization formula is structured. Some aspects do deserve scrutiny, such as the exclusion of certain provincial revenues, particularly from electricity generation, which disproportionately benefits Quebec. The formula could be adjusted to ensure a more accurate reflection of provincial wealth.

But Alberta’s grievances often overlook a key reality: equalization is not the only way federal dollars flow between provinces. Alberta receives significant funding through federal programs, infrastructure spending, and social transfers. The province has also benefited from federal relief efforts during economic downturns, just as other provinces have in times of crisis.

Additionally, Alberta has maintained low provincial tax rates, meaning that if the province truly wanted to receive more federal transfers, it could raise taxes to boost its eligibility. The fact that it chooses not to is a policy decision, not evidence of systemic bias.

Source: https://canadianreturnee.substack.com/p/the-truth-about-equalization-payments

Also, it's not Alberta that pays the equalization payments to other provinces. It's actual individual income tax. It just so happens that the most wealthy Canadians live in Alberta. And there's a lot more at play and you can learn about it by watching ths little 6 min video.

Source: https://www.youtube.com/watch?v=9vyd8p3BzCc