Seems to me I've commented on provincial equalization before ... but hey, once more into the breech!

Why try and equalize governments, with all the incredible complexity that entails in both negotiation and implementation, when you can promote individual equalization by using those provincial transfers to fund a basic income implemented as a negative income tax. Naturally this would replace provincial responsibility for welfare. That way, the people who needed a helping hand would actually get it, regardless of what province they lived in, and those who didn't, wouldn't, again, regardless of where they lived.

Promoting individual equalization would be far more granular, and therefore more accurate, than any provincial equalization formula.

And best of all, integrating it with the individual tax system (treating it as a negative tax) provides a mechanism for people to earn their way out of needing it without further intervention by government.

And no, I don't mean a liveable basic income, as most of its proponents do. One half of poverty line should be enough for an adult individual, with supplements for disabled, seniors and children, because none of them are expected to work.

And that mechanism would also be via a much lower marginal rate than welfare clawbacks (usually 50%) + income tax + other federal credits. It's bizarre many complain about high marginal rates for those at the top being a disincentive without having any idea how high the marginal rates are at the bottom.

Unfortunately, this all has constitutional implications - provincial transfers are baked into the Constitution Act as they were in the BNA Act.

What would happen is that the tax rates in Quebec and the Maritime provinces (not including NL) would have to go sky high to offset the loss of equalization payments, whereas not so in the rest of the country.

THAT to me is proof positive that the current provincial equalization scheme is not fair.

Welfare should be a program based on personal circumstances, not governmental ones. Giving welfare to governments is a recipe for waste. We're living it now.