The equalization formula ignores Alberta's resource wealth.
Claimed by: Commonly stated by Alberta independence advocates
False: False as written according to the settled evidence. How we rate.
Summary
There is a legitimate debate here: Alberta pays in heavily through federal taxes while its high fiscal capacity means it does not qualify for payments, and critics argue the formula does not account for cost-of-living differences. What the claim gets wrong is the mechanics. The formula does not ignore resource revenue. Since 2007, eligible provinces receive the greater of two calculations, one that includes 50 percent of natural resource revenues and one that excludes them, and Alberta's energy resources are part of the standard provinces are measured against. So the flat claim that resources are ignored misstates how the formula works, even though the underlying frustration is real.
Evidence
Since 2007 eligible provinces receive an equalization payment based on a calculation that either includes 50 percent of natural resource revenues or excludes them, whichever is larger.
Finance Canada documents the program design and how fiscal capacity, including resource revenue, is measured.