Parliament and the government of Canada are.
committed to the principle of making equalization.
payments to ensure that provincial governments.
have sufficient revenues to provide.
reasonably comparable levels of public services.
at reasonably comparable levels of taxation.
(Constitution Act, 1982, section 36(2).).
The Constitution Act of 1982 enshrines the principle of equalization payments from "have" to "have not" provinces to ensure that Canadians, no matter where they live, have access to comparable levels of public services at comparable rates of taxation. In reality, just two "have" provinces-Ontario and Alberta-contribute equalization funds to 5 "have not" provinces-the 4 Maritime Provinces and Quebec. Is it fair for people in those two "have" provinces? Is equalization payment efficient? Does it achieve equity? .
The purpose of this paper is to reassess equalization payment from an economic perspective and exam equalization payment from two major angles: efficiency arguments with incentive effect, and equity criteria. Equalization payments have the original purpose to eliminate the inefficiency of labor migration in a decentralized federation and to provide comparable levels of public services at comparable rates of taxation, no matter where people live. Equalization is politically popular but not perfect. This paper covers the causes of labor migration, the perverse incentive of equalization payment has on provinces, and finally the debatable equity issue. .
Efficiency and Incentive Effect.
An economy is efficient when resources and goods are allocated among people to make people as well off as possible, and no reallocation could make people better off without hurting somebody else. Whether equalization payment is efficient depends on whether it raises national income above when equalization payment is not in place. .
Without equalization payment in place, inefficiency of labor migration is one problem in decentralized federation.
On March 28,1917 the House of Commons, with an overwhelming majority, voted to allow women, over the age of 30 who were householders, wives of householders, occupiers of property with a rent payment, and graduates of British universities, the right to vote. Finally, in March of 1928 a bill was introduced giving men and women equalized voting rights. ... The government, therefore, equalized the power differences between men and women. ...
Employees in hardship countries can also receive additional leave expense payments and rest and rehabilitation periods (Dowling, 186-187). ... A policy must be competitive and it must recognize factors such as incentive for Foreign Service, tax equalization, and reimbursement for reasonable costs. ... This is payment to make up the differences in expenditures between home and in the foreign country. ... Relocation allowances pay for the costs of moving, shipping, storage, temporary living arrangements, subsidies for vehicles purchases, and down payment or lease related charges. ... In th...
The argument considers the effects of international transactions in a gold standard, a system in which gold is the official means of international payments and each nation's currency is in the form of gold itself or of paper currency fully convertible into gold. ... Moreover, since private capital moved swiftly to offset any balance of payments shocks, there was no need to ship gold across the Atlantic Ocean (though some gold shipment actually occurred). The overall balance of payments (=current account + capital account) could be kept near zero instantaneously as long as capital was mob...
The State Board of Equalization estimates that around 25,000 affiliates are located in California - 10,000 of which make money from Amazon. ... Rockwell plans to move out of state in order to recover his payments (Lifsher). ...
The paternalistic powers gave women what they thought they needed for an equalizer, not understanding the need for self-affirmation and independence. ... Economic sanctions include: payment of an "excess child levy" as compensation to the state for the cost of another child to the country; reduction in the family's grain ration (or higher prices) for producing a "surplus" child; limitations on additional land for private plots and the right to collective grain in times of flood and drought; and ineligibility for promotion for four years, demotion, or reduction in wages (And...
After looking at the vast amount of differences in management techniques from one nation or culture to the next, it became apparent that a paper on the subject would be extremely general. I decided to narrow my focus to expatriates and the changes that have taken place over the past decade or so th...
However, some people argue that non-smokers live longer than smokers do and will use healthcare services for a longer period of time, thus equalizing these costs. ... If a smoker becomes seriously ill and can not work, then they may become dependent on the government for housing and medical costs (in-kind transfer payments). ...
The most prominent item in dispute was the Funds reliance on gender and race-based data for work-life estimates from the Bureau of labor Statistics to calculate Fund compensation, which would result in lower payments to both women and minorities. ... I devoted a portion of this discussion to certain payments (specifically unpaid services) handled under the guise of Economic Loss that are either not addressed or underpaid to those who deserve it most (women). ... For cases such as this the Compensation Fund authorized advance payment of small fund awards ($50,000 for death benefits and $25,000...
As the great equalizer or leveler, the Web would give every American access to more education, business, public services, and economic power than ever before. ... My desire to get a new personal computer was interfering with my responsibilities toward providing my family with food and bills payments at home. ...
