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calculating who gets what is complex one report called it the black box of Equalization arithmetic first things first this is a federal program Ottawa collects tax revenues from across the country and uses that for any number of things including transfers to the provinces we often talk about equalization but that is just one of three programs sending federal money to the provinces Canada held transfers Canada social transfers and equalization at the heart of Equalization is whats known as fiscal capacity thats the revenue each province could raise if they all used a standard tax rate provinces with stronger economies raise more revenue than provinces with lower incomes the feds use equalization to bring those with a weaker fiscal capacity up to a national standard the formula actually started quite simply equalization equals the national standard - each provinces fiscal capacity its grown more complex over the years now it looks more like this its a glazing for sure but the main p
