With yesterday's release of equalization and major transfers, some (incl the premier) are concerned about fairness to Alberta.

Here's the data behind the 2021/22 EQ payments. It pays to lower-income provinces, which have lower ability to raise revenue. EQ pays to them only.

Why is Alberta's deficit so large when its "fiscal capacity" is so high? One reason is because we do not "use" much of our fiscal capacity. Tax rates are, on average, nearly one-third below the national average. Here's the latest data.

This isn't to suggest we should or shouldn't raise taxes, but it is to make clear that our deficit isn't a reason to receive equalization payments. Some claim (or at least imply) that the two are related. Even the premier did so yesterday when pointing to AB's revenue declines.