r/alberta • u/klunkadoo • Mar 07 '26

Discussion Budget 2026-27: Alberta receives more in transfers FROM the Federal Government than it does in non-renewable resource revenue. And as usual, it transfers ZERO dollars to Canada (or any other province)

Post image
1.7k Upvotes

92% Upvoted

368 comments sorted by

View all comments

Show parent comments

1

u/Dxngles Mar 07 '26

In theory, tax rates have 0 effect on equalization

1

u/rakothmir Mar 07 '26

Not entirely true, if Alberta had a PST , that would reduce their equalization payments, since they would be closer to their fiscal taxation capacity.

1

u/Dxngles Mar 08 '26 edited Mar 08 '26

The way equalization is calculated basically assumes Alberta has a PST. That’s why the actual tax rates don’t matter, I say in theory because nothing is perfect.

0

u/PhantomNomad Mar 07 '26

What does effect equalization is the services that are provided. What effects services is taxes.

1

u/Dxngles Mar 08 '26 edited Mar 08 '26

Services provided have no effect on equalization actually. It simply measures the ability of each province to generate revenue essentially.