The equalization quagmire

The arguments in favour of the changes can be classified into four different categories: •. Resource revenues and the Equalization standard are inadequate owing to the exclusion of Alberta from the calculation of the standard. [...] In effect, the changes represent a significant reform of the program without the benefit of an analytical assessment of the program that would identify a better system. [...] Saskatchewan has the much to gain from addressing the deficiencies of the current system – particularly the impact of the Equalization claw-back, the measurement of tax bases and the exclusion of Alberta from the calculation of the Equalization standard. [...] The exclusion of Alberta from the standard makes Saskatchewan a resource rich province relative to the other provinces that comprise the national standard used in the Equalization formula. [...] In other words, the tax base assumed to be available to a province in the Equalization formula may not be the same as the tax base assessed and taxed by the province.