July 25, 2018
Towards a more principled allocation of federal transfers
Over the ten years from 2007 to 2016, Ontarians paid a total of $96.3 billion more in federal taxes than they received in federal spending. In 2016 alone, that gap was $12.9 billion. This is the key finding from A Fair Fiscal Deal: Towards a more principled allocation of federal transfers, Mowat’s latest report.
We find that some of Canada’s transfers – Old Age Security, the Canada Health Transfer and the Canada Social Transfer – meet this test. But other major transfers – Employment Insurance, Equalization, and at least some transfers generally classified under the “Other Transfers” header – allocate their funding in an unprincipled manner. These unprincipled allocations significantly contribute to Ontario’s fiscal gap.
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Authors
Andrew Thies
Jordann Thirgood
Erich Hartmann
Release Date
July 25, 2018
ISBN
978-1-77259-067-8
Mowat Research
No. 166