Tyler_JC wrote:cube wrote:DaleFromCalgary wrote:Equalization, for the benefit of non-Canadian readers, takes a portion of federal tax money and redistributes it to provincial governments using a have/have not formula that makes the Wall Street derivatives a model of clarity. The idea is to help poorer provinces maintain public services at a common national level.
woah that's a weird system
that would never happen in the USA
I hope you're joking...
....
no I am not joking.
There is no official system in place that redistributes federal dollars from one state to another.
politics can and do change.
Just because a state received more federal dollars then they contributed one year that does not mean it will be the same next year.
1) For example a state may get hit with a natural disaster and thus receive an unusually large amount of federal aid.
2) Presidential politics is another variable.
Back when Bill Clinton was running for a 2nd term there was a running gag, "Bill Clinton was the best governor California ever had."
Not surprisingly he won California's electoral votes.
3) There may be some transportation / military reason. Imagine Hawaii during WW2...I'm quite sure a whole lot of federal money got poured into that area.
The point I'm trying to make is of course some states receive more then others but it's
NOT based on some type of socialistic system where the objective is to even things out. It's done for other reasons. Remember no one has ever accused Americans of being socialists.