Canada’s Equalization Formula
Publication No. 2008-20-E
10 November 2008
Revised 4 September 2013

1 INTRODUCTION

Equalization is a federal transfer payment program that was first introduced in 1957and is designed to reduce the differences in revenue-generating capacity across Canada’s 10 provinces. By compensating poorer provinces for their relatively weak tax bases or resource endowments, Equalization helps to ensure that Canadians residing in provinces have access to a reasonably similar level of provincial government services at reasonably similar levels of taxation, regardless of which province they call home. Another federal transfer program, Territorial Formula
Financing, serves a similar purpose for territorial governments.

Equalization is financed entirely from Government of Canada general revenues.
The provinces are uninvolved in the transfer except to the extent that they may qualify for Equalization payments; provincial governments do not contribute financially to the Equalization program, and each provinces ability to raise Tax revenues is unaffected by the transfer. There are no conditions on the use of Equalization payments or the standards that should be achieved by the Equalization-receiving provinces. Instead, the provinces make decisions on behalf of their residents, and they are accountable to voters for the services they provide.

The above is a government document from Ottawa explaining how the Equalization transfers work and how they are distributed within Canada.  The NSEF is fighting strong and hard against our own provincial government on the issue of how they distribute these funds within the province.  Karen Casey just sent a letter to Mark Eyking stating that the provincial government does not have specific numbers for government funding in a region, like Cape Breton. The province keeps stating that they are treating Cape Breton as fair as everyone else in the province.  Now I ask you, are we being treated fairly? Why will the government not sit down and speak to the NSEF, who have been collecting data for over 20 years on this issue? How can the government actually tell people of this Island that they have no idea how much money has been spent in our region in infrastructure, etc? 

The constitution of Canada clearly states what the Equalization funds are being provided for.  Why are property taxes going through the roof in Cape Breton and service are dwindling more and more every day. Why is the Federal Government completely ignoring us on the issue of crimes against the people of rural Nova Scotia.  The Minister of Justice (Jody Wilson-Raybould) has been contacted several times and had letters hand delivered but will not even acknowledge any of it.  This is for a reason no doubt.  I have said it before and I will say it again......The party politics are killing this country.  The political parties are too busy looking after the parties and not the politics of the land. 

Cape Breton might want to look long and hard at separating from Nova Scotia.  If your own governments (Both Levels) are completely ignoring laws being broken against you because of the different political parties, then we have a problem Houston.......Dan Christmas is 100% correct, "we are dying and slowly bleeding to death" and the reason it is a slow bleed is to ensure the capitol region will continue to receive funding.

SHAME ON THE GOVERNMENT OF NOVA SCOTIA.