I get so annoyed when I hear experts claim that Ontario is now a benefitter of the equalization program, and that this shows how much the province has declined. Simply not true.

Yes Ontario received $1 billion under the program in 2011, but Ontarians also contributed $5.5 billion in taxes to fund the program. Simple math means that Ontario actually lost $4.5 billion due to equalization in 2011. That’s $4.5 billion of Ontarian tax dollars that was transferred to other provinces. Ontario is a big net loser in the program.

Think of it this way: If the Federal government eliminated the equalization program and used the savings to lower federal taxes, Ontario could raise provincial taxes by an equal amount without changing the overall taxes paid by Ontarians. The only difference would be that Ontario itself would have $4.5 billion more to spend on Ontario priorities (like transit infrastructure!!). And that’s just one year.