Equalization is indeed a complex issue, but let's be fair. It is a bit like an income tax form: it could be far simpler, but then it would be less accurate.
I referred to the Séguin report, but I also referred to the Council of the federation document as well as that of a panel of experts whose report was commissioned by the federal government. So, although it may not be simple, there is a way to find a solution.
As to whether the provinces should have or could have access to the 1% resulting from the July 1st decrease in the GST, that would have been feasible. Legally speaking, there is nothing precluding their accessing that amount. But if we want to properly settle the fiscal imbalance, Ottawa will have to lend a hand and offer a 3% reduction in the GST.
During the last election campaign, Mr. Harper was standing by a cash register when he talked about decreasing the GST. He did not say he was going to give the money to the provinces, he said he was going to give it to the people.
Technically speaking, the provinces could have done that.