During a conversation, Quebec was mentioned.
“We don’t want them,” said one of the five at the table. “They don’t pay any federal taxes. They keep it all for themselves.’’
“That doesn’t make sense,” responded one fellow.
“You are misinformed,” said another.
“No, I’m not misinformed. I read it somewhere.’’
A Google search turned up the facts from Government of Canada Accounts contradicting this fellow’s misguided belief.
Accounts show in 2023 Quebec residents paid personal income taxes as in other years.
The Quebec economy has done well in the last 20 years, largely attributed to a 1960s Parti Quebecois government that gave free post-secondary education tuition.
That change in a few generations developed a skilled educated labour force that can compete with anybody.
In addition to $4.2 billion personal income tax Quebeckers pay corporate income tax and GST to Ottawa.
They pay 15.7 per cent of Ottawa’s personal income tax revenues, paling in comparison to Ontario.
Ontario pays the most personal income tax with $11.6 billion of the $27.5 billion collected.
Third most personal income tax comes from British Columbia with $4.16 billion followed by Alberta at $3.39 billion and Manitoba at just over $1 billion.
Saskatchewan residents paid $871.5 million, or 3.1 per cent of the total.
One per cent of these taxes were paid by non-residents, Yukon and the Territories.
To further respond to this apparent conspiracy theory the question arises: how much money do the provinces receive from the federal government from Canada Health, social programs and equalization?
In the fiscal year that ended March 2024, the feds paid provinces $87.67 billion, with about one-quarter in equalization payments.
Equalization is intended to prop up poorer provinces so they can offer comparable levels of services.
The largest share of federal payments was to Quebec for $27.4 billion with two-thirds in equalization.
Second largest was Ontario at $23.8 billion (about $1 in $7 in equalization).
British Columbia was next at $8.4 billion and had no equalization. Fourth was Alberta at $7.1 billion and no equalization,
Fifth was Manitoba at $5.1 billion, with 60 per cent in equalization.
Next came Nova Scotia at $4.1 billion, over half in equalization, followed by New Brunswick at $3. 6 billion with two-thirds in equalization,
Saskatchewan with $1.09 billion and no equalization was eighth.
Ninth was Newfoundland and Labrador at $1.6 billion and no equalization payments.
Last was Prince Edward Island at $765 million, two-thirds in equalization funds.
The equalization formula reduces eligibility based on resource revenues. Alberta, Saskatchewan, Newfoundland and Labrador and British Columbia have petroleum revenues that eliminated them in 2023-24.
Resources revenues from hydroelectricity in Ontario, Quebec, Manitoba, British Columbia and Newfoundland and Labrador aren’t part of the equalization formula, creating an injustice.
The point of this column with the data load is to convince people to think carefully and ask for sources when presented with good or bad-sounding information.
Ron Walter can be reached at [email protected]
