Can Ottawa fix equalization before Alberta gives up? Economist offers plan
Lennie Kaplan says equalization rewards provinces for raising less revenue, breeding resentment and incentivizing dependence on larger equalization cheques.
Alberta’s equalization fight could finally have a fix amid the looming threat of independence.
One of the province’s leading economists says tying payments to public service costs or fiscal disparities would reduce regional tensions and better target billions in transfers.
Lennie Kaplan, a former Alberta Treasury Board senior manager, says the current equalization formula fuels resentment by rewarding provinces for raising less revenue, giving them an incentive to avoid growth and keep larger cheques from Ottawa.
“It shouldn’t come down to a choice between the costs of Alberta separation or maintaining the status quo,” Kaplan told Juno News, noting as many as three in 10 Albertans want to break away from Canada.
