Nova Scotia, New Brunswick, and the Equalization Policy Crutch

In general, the equalization program creates disincentives for economic development in have-not provinces. Past equalization reforms that sought to weaken these disincentives appear not to have been robust enough. The result is that existing incentives are still not strong enough for Nova Scotia and New Brunswick to pursue resource development—development that would, if pursued, have the potential to result in higher incomes, additional royalty and tax revenues for both provincial governments, and which would then allow for a reduction in the noticeably high tax levels in both provinces.

Click here to read the full publication →