What isn’t spelled out, but should be, is that if the pipeline ingrates succeed, their equalization will evaporate. But not because the west shuts it off — even if it could (and it can’t because equalization is a federal program). Well, actually, if your province is getting equalization it’s because its tax base is lower than the national average tax base (albeit with both “national” and “average” defined in ways specific to whatever the latest version of the equalization formula is). So, yes, everybody should be aware of how worse times in high-income Alberta will reduce equalization. But I suspect most pipeline-blockers would say even if killing pipelines kills equalization, it’s a price we’re willing to pay.

Source: National Post November 04, 2019 17:08 UTC