I think that it's fair to say that any economist would not support the Canadian model as it currently exists as a form of state welfare.
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The authors also say that Ontario is still a net contributor to federal coffers and likely will be in the future. Based on the most recent 2005 data, they say Ontario residents contributed $21 billion more to Ottawa than they got back in federal spending.
So if Ontario does end up getting equalization payments, "Ontario residents will, in effect, be paying the equalization tab with their own money," according to Drummond and Burleton.
The authors suggest that it may be time to take another look at the equalization formula, even though the new formula has been in place for just a year. "Ontario's transformation into an equalization-receiving province underscores the impact of the inclusion of 50 per cent of non-renewable resource revenues for all provinces in the formula at a time of soaring energy prices," they write.