A TD economist has postulated that Ontario will be a have-not province under Canada's Equalization Payments system by 2010. The current program of making poor people as
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The real flaws are in his brain.
The real story behind this Equalization brew-ha-ha is that the artificially heightened price of oil has boosted the tax resources of the provinces that mine for fermented dinosaurs and reduced the taxing power of those provinces with a industrial base.
So what does Flabberty say about this? "Action needs to be taken by the Province of Ontario to join us, to partner with us to encourage economic growth in that province." Is the way he talks about Ontario and its Premier the way to encourage partnership? The action that Flabberty wants Ontario to take is to reduce corporate taxes. That is an utterly stupid thing to say on two fronts. First, reducing corporate taxes only helps corporations who make a profit, like the banks and oil companies, who fund the Con party. It is interesting to note that if the Ontario government were to reduce corporate taxes they would move towards have not status even faster.
So what is a government to do? If Ontario is classified as have-not then they will get funding from the Equalization pool, a pool that they contribute $20 billion per year to. Essentially they would be funding themselves. Not good.
The alternative is the wipe out Equali
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The only winner in this battle between Ontario and the Feds is the people of Ontario. Owing to his big foul mouth, there is no way that Flabberty will ever become the leader of the provincial Cons or Premier of Ontario.
By the way, a word to the wise about economists. It is said that if you ask 20 economists a question you will be 21 answers.