IDEAS home Printed from https://ideas.repec.org/p/qed/wpaper/1121.html
   My bibliography  Save this paper

The Reform Of Equalization Payments

Author

Listed:
  • Dan Usher

    (Department of Economics, Queen's University)

Abstract

A reasonable and fair interpretation of the mandate for equalization payments in Section 36(2) of the Canadian Constitution would differ from the present equalization formula in these respects: (a) transfers to the poorer provinces would be financed by transfers from the richer provinces rather than from the federal government; (b) entitlement to equalization payments would depend on provincial income rather than on a tax-by-tax comparison of the provinces' many tax bases; (c) for this comparison, provincial income would include revenue accruing directly to the provincial governments as well as the private income of residents of the pr ovince; and (d) compensation would be made for the exemption of provincial resource revenue from federal income tax. The most pronounced effect of these proposals would be to transfer the greater burden of equalization payments from Ontario to Alberta which is now, by far, the richest province.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Dan Usher, 2007. "The Reform Of Equalization Payments," Working Paper 1121, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:1121
    as

    Download full text from publisher

    File URL: https://www.econ.queensu.ca/sites/econ.queensu.ca/files/qed_wp_1121.pdf
    File Function: First version 2007
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Thomas J. Courchene & David A. Beavis, 1973. "Federal-Provincial Tax Equalization: An Evaluation," Canadian Journal of Economics, Canadian Economics Association, vol. 6(4), pages 483-502, November.
    2. W. D. Gainer & T. L. Powrie, 1975. "Public Revenue from Canadian Crude Petroleum Production," Canadian Public Policy, University of Toronto Press, vol. 1(1), pages 1-12, Winter.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jaime Bonet-Morón & Jhorland Ayala-García, 2015. "Transferencias intergubernamentales y disparidades fiscales horizontales en Colombia," Documentos de Trabajo Sobre Economía Regional y Urbana 14181, Banco de la República, Economía Regional.
    2. Albouy, David, 2012. "Evaluating the efficiency and equity of federal fiscal equalization," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 824-839.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Robert D. Cairns, 1981. "The Constitution as Regulation: The Case of Natural Resources," Canadian Public Policy, University of Toronto Press, vol. 7(1), pages 66-74, Winter.
    2. Michael Smart, 1996. "Taxation incentives and deadweight loss in a system of intergovernmental transfers," Working Papers msmart-96-03, University of Toronto, Department of Economics.
    3. Buettner, Thiess, 2006. "The incentive effect of fiscal equalization transfers on tax policy," Journal of Public Economics, Elsevier, vol. 90(3), pages 477-497, February.
    4. Ann Cavlovic & Kathleen Day, "undated". "Equalization and the Incentives for Growth: An Empirical Investigation of the "Tax-Back" Effect," Working Papers-Department of Finance Canada 2003-23, Department of Finance Canada.
    5. Brosio, Giorgio & Jiménez, Juan Pablo & Ruelas, Ignacio, 2018. "Territorial inequality, equalization transfers and asymmetric sharing of non-renewable natural resources in Latin America," Macroeconomía del Desarrollo 44368, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    6. Brosio, Giorgio & Jiménez, Juan Pablo & Ruelas, Ignacio, 2018. "Territorial inequality, equalization transfers and asymmetric sharing of non-renewable natural resources in Latin America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    7. Bev Dahlby & Neil Warren, 2003. "Fiscal Incentive Effects of the Australian Equalisation System," The Economic Record, The Economic Society of Australia, vol. 79(247), pages 434-445, December.
    8. Albouy, David, 2012. "Evaluating the efficiency and equity of federal fiscal equalization," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 824-839.
    9. Robin Boadway & Katherine Cuff, 2017. "The impressive contribution of Canadian economists to fiscal federalism theory and policy," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(5), pages 1348-1380, December.
    10. Robin Boadway & Frank Flatters & A. Leblanc, 1983. "Revenue Sharing and the Equlization of Natural Resource Revenues," Canadian Public Policy, University of Toronto Press, vol. 9(2), pages 174-180, June.
    11. Jean-Thomas Bernard & Soufiene Ben Mabrouk, 2010. "Péréquation et comportement stratégique des provinces bénéficiaires : un contre-exemple intrigant," Canadian Public Policy, University of Toronto Press, vol. 36(2), pages 215-225, June.
    12. Santiago Lago Peñas, 2002. "Nivelación interterritorial e ineficiencia de las decisiones presupuestarias: reflexiones para el caso español," Hacienda Pública Española / Review of Public Economics, IEF, vol. 162(3), pages 79-100, ¨Septembe.

    More about this item

    Keywords

    Equilization; Federal-provincial transfers;

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:qed:wpaper:1121. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mark Babcock (email available below). General contact details of provider: https://edirc.repec.org/data/qedquca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.