I had this exact conversation with my son this week as he and his wife visited from the west.
Alberta, Ottawa set to clash over rent supplement cost, Dec. 27
This story reports another impasse over money between Alberta and Ottawa. Yet it fails to explain the full story as to why Alberta is so low on cash.
Alberta has been a tax haven for decades, and still has no provincial sales tax like almost all of the rest of Canada pays. For Ontario, the provincial sales tax is 8 per cent; for Alberta, it is 0. The revenue going to provincial coffers from this are huge in Ontario; zilch in Alberta.
So what does Alberta Premier Jason Kenney do? He expects federal funds to cover for the lack of Alberta provincial funds. He never mentions sales tax. That means taxpayers in other provinces, who pay provincial sales tax as well as other taxes, are expected to maintain the Alberta tax haven.
Why isn’t this fact included in every story about Alberta seeking federal money? Canadians would then better understand how Kenney is pulling the wool over everyone’s eyes.
Allan Fox, Toronto