Canada’s controversial system of equalization payments, explained

Canada’s controversial system of equalization payments, explained THE DECIBEL STAFF, SHERRILL SUTHERLAND AND PATRICK BRETHOUR PUBLISHED 43 MINUTES AGO Open this photo in gallery: ILLUSTRATION BY MELANIE LAMBRICK COMMENTS SHARE SAVE FOR LATER Listen to this podcast 24:00 1X Listen to this episode by clicking above or subscribe to The Decibel on your favourite podcast app or platform: Apple Podcasts, Spotify, Amazon Music, iHeartRadio, Pocket Casts and YouTube. Canada has had a system of equalization payments for decades, where money collected by federal income taxes gets distributed to provinces worse off financially than others. It has proven to be controversial in some areas, like Alberta where Premier Danielle Smith has claimed that equalization is a ‘gravy train’ for the rest of Canada through these payments. Members of the Alberta separatist movement have also used this as a reason to push for separation. But there are a lot of misconceptions about this complicated program. So today, we speak with Patrick Brethour, the Globe’s Editorials editor and former tax and fiscal policy reporter. He’ll demystify the equalization program by explaining how it works, why it’s so controversial, and what he thinks would make it better. Questions? Comments? Ideas? Email us at thedecibel@globeandmail.com Sign up for our Morning Update newsletter. Start your day with context and insight on the biggest stories shaping our lives SIGN UP EXPLORE NEWSLETTERS Report an editorial error Report a technical issue Editorial code of conduct Comments Read or post comments Diversions Horoscope Daily astrology with Sally Brompton Daily Crossword Solve today's puzzle Daily Cryptic Witty word play at its best Sudoku Three difficulty levels to solve Follow related authors and topics ALBERTA FOLLOW DANIELLE SMITH FOLLOW FEDERAL POLITICS (CANADA) FOLLOW TAX FOLLOW Authors and topics you follow will be added to your personal news feed in Following. Interact with The Globe WHAT TO WATCH NEWSLETTER Be captivated Plan your screen time with film and TV columns, reviews and streaming advice from Globe critics Barry Hertz and more SIGN UP GLOBE EVENTS Women's Mental and Brain Health - From awareness to action September 28 | Join The Globe in person or virtually for an event exploring the evolving science and lived experiences shaping women's mental and brain health. REGISTER NOW WATCHLIST A good investor uses the right tools Dig deep into stock quotes for the latest…