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- Xref: sparky can.politics:11708 soc.culture.canada:10391
- Newsgroups: can.politics,soc.culture.canada
- Path: sparky!uunet!cs.utexas.edu!torn!watserv2.uwaterloo.ca!mach1!dmccrea6
- From: dmccrea6@mach1.wlu.ca (doug mccready F)
- Subject: Re: Deficit, Deficit, who's got the Deficit? was: NDP "communism?"
- References: <jstewart.727977919@cunews> <1993Jan25.183618.3628@mdivax1.uucp>
- Message-ID: <C1G5x7.3H3@mach1.wlu.ca>
- Organization: Wilfrid Laurier University
- Date: Tue, 26 Jan 1993 05:58:19 GMT
- Lines: 44
-
- >
- >The problem of higher taxes decreasing (or seeming to) real disposable
- >income is not unique to Ontario.
- >
- >I believe that Vancouver area home prices are comparable to, or greater
- >than, TO area home prices. Ditto for other expenses (heating excepted). Yet
- >BC is still a "have" province as well. [An interesting aside which does
- >somewhat support John's complaint is that the home ownership rate in
- >Newfoundland is about 80% and is, I believe, the highest in the country]
- >
- >One thing, however, that I could never understand is how Quebec is a
- >"have-not" province. It seems quite well off compared to the Atlantic
- >provinces and even Sask & Manitoba. Could Doug possibly address this?
-
- The formula takes into account revenues of many different types.
- Saskatchewan varies between a have and a have not province from year-to-year
- based on the fact that it's revenue base changes quite a bit from year to
- year (both natural resources and grain vary tremendously in price and thus
- revenue bases for that province). Manitoba and Quebec are closer to the
- accepted standard than the four eastern provinces but the formula brings the
- poor provinces up to a six province average which was designed by the
- Trudeau government (when it was last changed) to include those provinces as
- poor provinces.
-
- Thus, if the Conservatives wanted to reduce the amount going to poor
- provinces, particularly Quebec, Manitoba, and Saskatchewan, all that has to
- be changed is the standard level of revenues to equalize to - if that were
- based on the national (all ten province average) Quebec and Manitoba would
- still qualify (I think) but if it were say 40% of the national ten-province
- average, both provinces would not qualify as poor provinces. Our
- constitution since 1982 has guaranteed an equalization formula but never has
- specified what formula. Thus, for those who want to complain, I suggest that
- the acceptable standard be 40% national ten-province standard and billions
- of dollars would be saved - can you imagine the hus and cry about how cruel
- the Feds were being then? I just cannot imagine any government bring such a
- policy in except maybe Reform and I don't believe they would even be
- willing.
-
- >Jim Robinson
- >robinson@mdd.comm.mot.com
- >{ubc-cs!van-bc,uunet}!mdivax1!robinson
- >
-
-
-