Quote:
Originally Posted by YOWetal
You pay less federal taxes per capita than average for all kinds of tax. Thus get a subsidy from RoC greater than the equalization payment. Alberta is a huge net contributor even without equalization.
As I said it's a lot more than equalization but the US system has even more of that so Quebec if part of the US would get huge benefits from being so much poorer. Medicaid funding would about as much as the federal government gives for healthcare funding for example.
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Québec ranks in 5th place among provinces for the amount of taxes paid to Ottawa per capita:
https://www.visualcapitalist.com/sp/federal-tax-paid-per-capita-across-canada/
But Canada gets more of its money's worth out of Québec. Before the new federal daycare program, Ottawa deducted in taxes part of what parents paid in daycare, but since Québec has a 7 $ daycare program (paid only by Québec taxpayers), Québécois parents barely got anything reimbursed. According to a study, Ottawa made a little less than a billion a year of savings by not having to give deductions in Québec.
Another example is higher education. To help people to get higher education (and therefore help them increase their revenues, therefore reducing equalization), Québec chose to have lower college and university fees. A consequence of that is that richer provinces can lure graduates with lower taxes (in part because they dont have to finances their own universities as much as Québec) and received fully educated workers ready-to-use. That is worth something, right?
Also, why do you think the loudest whining against equalization comes form Alberta and not from Ontario (who pays more than any other provinces into equalization, BTW)? Ontario knows that a big chunk of that money will get back to them from (very lucrative !) exportations to Québec.
Oh, let's not forget about another perk graciously offered by Québec: diversion. When something bad happens in Canada, there is almost always a way to blame it on Québec, or just to say "yeah, but Québec...". That is worth quite a bit, dont you think?