Canada’s controversial system of equalization payments, explained

Canada has had a system of equalization payments for decades, where money collected by federal income taxes gets distributed to provinces worse off financially than others. It has proven to be controversial in some areas, like Alberta where Premier Danielle Smith has claimed that equalization is a ‘gravy train’ for the rest of Canada through these payments. Members of the Alberta separatist movement have also used this as a reason to push for separation.

But there are a lot of misconceptions about this complicated program. So today, we speak with Patrick Brethour, the Globe’s Editorials editor and former tax and fiscal policy reporter. He’ll demystify the equalization program by explaining how it works, why it’s so controversial, and what he thinks would make it better.

Questions? Comments? Ideas? Email us at thedecibel@globeandmail.com

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