VANCOUVER, B.C.: The Canadian Taxpayers Federation is joining the fight against Newfoundland and Labradors’ legal bid to increase federal equalization payments.

“Provincial governments want the courts to force Ottawa to give them even more money through the equalization program and taxpayers simply can’t afford to pay those bills,” said Carson Binda, B.C. Director for the CTF. “Taxpayers in so-called have provinces lose billions through the equalization program, but the payments don’t provide any long-term solutions in recipient provinces.

“The Canadian Taxpayers Federation is getting into this court fight to stop provinces from wasting even more taxpayers’ money on the equalization program.” 

The Newfoundland and Labrador government is suing the federal government for more equalization money. Premier Andrew Furey is arguing a province should receive more tax dollars when it can’t afford to pay for new programs that other provinces implement.

“Taxpayers in the rest of Canada shouldn’t be on the hook for whatever new spending provincial politicians want to roll out,” Binda said. “Equalization already costs $25 billion a year – how much would the bill go up if Furey gets his way?” 

The CTF filed an application to intervene in the Newfoundland and Labrador Supreme Court on Oct. 3, 2024. The CTF will argue that the Constitution does not give provinces standing to sue Ottawa for bigger equalization payments.

“Canada’s Constitution was never designed to grant provincial governments the authority to forcibly extract more tax dollars from taxpayers in other provinces,” said Devin Drover, CTF General Counsel and Atlantic Director. “We look forward to representing taxpayers in the court in this groundbreaking case.”

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