• chonglibloodsport@lemmy.world
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    2 days ago

    Canada has a massive program of equalization transfer payments where taxes collected in rich provinces go to subsidize poor ones. The US does not have anything like this. None of the state governments have their budgets subsidized by other states.

    • Kecessa
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      1 day ago

      It’s federal taxes so it’s the federal government that’s subsidizing some provinces and not others to make their potential tax revenue per capita the same, the goal is to make sure those provinces aren’t left behind.

      If the program didn’t exist Albertans would still pay those taxes, they would be used to pay for other Canada wide programs.

      Bonus: Lil’PP signed on the the current calculation of transfer payments, it was put in place during the Harper years.