Comment by OgsyedIE
2 hours ago
Federal income taxes are the same in all Canadian provinces except for Quebec (as part of the abatement settlement), but Alberta and to a lesser extent Saskatchewan are large net contributors, since the higher-earning median Albertan is more affected by Canadian federal marginal tax rates. It's an exact analogue of Californian tax revenue paying for Mississippi. (If you'd like some keywords for searching, the popular term is Alberta equalization)
Under the current equalization system, Alberta last received a single Canadian dollar of direct spending in the 1964/65 fiscal year, whilst four other provinces have received over $1B annually since 2014 (Quebec, Manitoba, New Brunswick, Nova Scotia).
It sounds like I'm selling Albertan independence, but the fact that Ottawa aims for progressive internal redistribution is the exact same thing the US already has, as you point out. Similar figures of only receiving indirect federal returns can be stated for American net contributor states, too. It's the price of being in a large country, where in exchange you have a pooled currency and military that reduce vulnerabilities to external attackers.
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