By now you’ve heard that Jason Kenney has announced the referendum questions that Alberta will be voting on in October as part of Kenney’s mass distraction plans. It’s unheard of to have multiple referendum questions – in this case, daylight savings and removing equalisation from the Constitution – on top of an unconstitutional sideshow of Senate “nominee elections,” and yet Kenney is putting these all together with the upcoming municipal elections. This has the bonus for Kenney of muddying the waters of those elections, where more progressive candidates tend to do better, particularly in the cities, and he gets to claim that he saves money by holding them at the same time, but this is a lie. Municipal elections are run by the municipalities themselves, while these referenda and bogus “nominee elections” are held by Elections Alberta, and just because they happen at the same time and can co-locate spaces doesn’t change the fact that it going to cost more.
The thing is, the referendum on equalization won’t actually do anything because even if they sent a message to the rest of Canada and brought everyone to the table to negotiate, the only thing that’s in the Constitution is the principle of equalization – the formula itself is federal legislation, because the programme is paid out of federal general revenues. But Kenney is content to keep lying to the public and pretending that Alberta signs a cheque every year that Quebec cashes and pays for its child care system with (which it doesn’t – they pay for that out of their own taxes, and they reap the direct economic benefits from it as well). As well, the myth that Quebec killed Energy East is being invoked (Quebec had nothing to do with it – the proponent couldn’t fill both Energy East and Keystone XL with their contracts, so Energy East was abandoned as Keystone XL looked like the more likely to reach completion – not to mention that it wouldn’t have actually served the Eastern Canadian market), which is again about stoking a faux sense of grievance. The fact that Kenney is stoking this anti-Quebec sentiment because he thinks it’ll win him points (and hopefully distract the angry mob that is gathering outside his own door) is not lost on Quebeckers when it comes to Kenney’s good friend, Erin O’Toole, looking for votes in the federal election.
https://t.co/Nsd5qTm21d pic.twitter.com/mlov0HAcq4
— Dale Smith (@journo_dale) July 15, 2021
"You're not the only province that can work itself into a pointless hissy fit!" https://t.co/XcnMldwiBO
— Stephen Gordon (@stephenfgordon) July 15, 2021
But as economist Trevor Tombe keeps saying, Alberta doesn’t need equalization in the same way that Bill Gates doesn’t need social assistance – Alberta is still making way more money than any other province, even with their harder times economically. The province’s deficit is not a result of equalization or money supposedly being siphoned east (again, equalization comes out of federal taxes) – it’s a result of a province that refuses to implement sales taxes or other stable revenue generation, and expecting everyone else to subsidize that choice (while also cutting corporate taxes under the illusion that it would create jobs, but didn’t). This is just Kenney handwaving and shouting “look over there!” because he knows he’s in trouble, and he needs to keep everyone focused on a different enemy. He shouldn’t be rewarded by people falling for it.
If you earn more income, you'll pay more taxes. Federal tax rates are the same in Alberta as they are in BC, Ontario, Etc. pic.twitter.com/TfHbHCfBa4
— Trevor Tombe (@trevortombe) July 15, 2021
It shouldn't be hard to articulate precisely what **specific feature** of fiscal arrangements are "unfair" in Alberta.
It's likely mostly about pipelines, but that's entirely separate from equalization, and federal income taxes.
— Trevor Tombe (@trevortombe) July 15, 2021