VANCOUVER — Albertans’ net contribution to federal finances has saved taxpayers in other provinces about $1,000 annually on average over the past two decades, according to a new study from the Fraser Institute.
The study, released Monday by the Vancouver-based public policy think tank, estimates Alberta will contribute a net $321.9 billion more to federal revenues than it receives back in federal spending and transfers between 2007-08 and 2026-27.
The report says Alberta’s projected net contribution is nearly four times larger than British Columbia’s and more than five times Ontario’s over the same period.
According to the study, maintaining current federal spending levels without Alberta’s net contribution would require taxpayers in other provinces to pay an average of $1,007 more per year in income taxes.
The Fraser Institute defines a net contribution as the difference between the amount residents and businesses send to Ottawa through taxes and other revenues and the amount returned through federal spending and transfers.
Tegan Hill, director of Alberta policy at the Fraser Institute and co-author of the report, said many Canadians are unaware of the size of Alberta’s contribution to federal finances.
The report comes amid heightened debate over federal-provincial relations, equalization and Alberta’s role within Confederation.
The Fraser Institute is an independent public policy think tank. Its findings have not been independently verified.
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