When the federal government announced its changes to equalization in 2007, it provoked an immediate and negative response from the premier of Newfoundland. He argued that the federal government had broken its promise to exclude all nonrenewable-resource revenues. If the purpose of equalization is to equalize disparities in fiscal capacities, what reasons would the premier of Newfoundland have for wanting nonrenewable resources excluded from the formula? What arguments could you make for increasing the inclusion rate from the 50 percent under the former system to the 100 percent under the new system?