National
The political welfare straw man
From the Canadian Taxpayers Federation
Author: Jay Goldberg
After taking office, Ford started decreasing political welfare payments. But once the pandemic hit, Ford cranked the payments up to all-time highs, blaming the pandemic for making it more difficult for political parties to fundraise.
For Ontario’s political parties, the jig may finally be up.
Premier Doug Ford is just six months away from scrapping Ontario’s political welfare system. Political welfare has been a golden goose for the province’s political bigwigs and a nightmare for everyday taxpayers.
The program will soon be relegated to the ash heap of history, so long as Ford doesn’t go wobbly.
How did we get here?
Nearly a decade ago, former premier Kathleen Wynne banned corporate and union donations to political parties in Ontario. But at the same time, she created a taxpayer-funded political welfare scheme. As a result, political parties get a set amount of money from taxpayers four times a year for every vote they received in the previous election – no strings attached.
In trying to sell this political welfare cash cow to Ontario taxpayers, Wynne presented the situation as a trade-off: to ban corporate and union donations to political parties, the so-called per-vote subsidy was needed.
“Democracy is not free,” argued one of Wynne’s ministers when the Liberals introduced the program.
Before Ford got to Queen’s Park, he knew all of that was hogwash.
“I do not believe the government should be taking money from hard-working taxpayers and giving it to political parties,” said Ford in 2018.
Political parties, Ford argued, should survive by raising money from everyday taxpayers. There was no need for corporate and union donations or taxpayer handouts.
Sadly, Ford lost his way.
After taking office, Ford started decreasing political welfare payments. But once the pandemic hit, Ford cranked the payments up to all-time highs, blaming the pandemic for making it more difficult for political parties to fundraise.
Of course, Ford didn’t let logic or facts get in the way. The truth is Ontario’s political parties raised millions during the pandemic and didn’t need taxpayer handouts.
But now it appears Ford is finally seeing the light: Wynne’s political welfare regime is set to expire at the end of 2024.
Let there be no mistake: there is no valid argument in favour of keeping this taxpayer atrocity.
Ontario’s political parties will not go broke when the taxpayer taps turn off next year. In fact, they’re currently swimming in buckets of cash.
The province’s four major political parties – the Progressive Conservatives, Liberals, NDP and Greens – raised more than $14 million collectively in 2023, and currently have the same amount of money in the bank.
The PCs, Liberals and NDP all have at least $2.3 million in their bank accounts. Even the Green Party, which holds just one seat at Queen’s Park, is sitting on more than $500,000 in cash.
Clearly, Ontario’s political parties won’t go broke if they get off the taxpayer dole.
Even if Ontario’s political parties weren’t sitting on a massive war chest, the reality is they would adapt quickly to a new system reliant on small-dollar donations.
Former prime minister Stephen Harper ended the federal version of Wynne’s political welfare scheme over a decade ago. And corporate and union donations have been banned federally for two decades. Prime Minister Justin Trudeau hasn’t so much as tweaked those changes.
Since Harper put an end to federal political welfare, Canada’s political parties have flourished.
They’ve all gotten better at appealing to everyday Canadians to make small-dollar donations and they’re raised more money since the per-vote subsidy was scrapped than they did before.
That’s exactly what will happen when Ford kiboshes Ontario’s version of the per-vote subsidy at the end of the year. And that’s how it should be.
If political parties want to raise cash, they should do so by winning over taxpayers, not raiding their wallets.
The deadline is looming, but the fight here in Ontario is far from over.
Ford extended the life of the political welfare regime before and he could do it again.
That means taxpayers must stay vigilant.
If Ford sticks to his word, Ontario taxpayers will have one less monkey on their backs come 2025.
Let’s make sure that comes to pass.
From the Fraser Institute
By Ben Eisen and Milagros Palacios
Hiring by the federal government in excess of population growth cost taxpayers $7.5 billion in 2022/23.
The federal workforce has grown more rapidly than the Canadian population starting in 2015/16, imposing significant costs on taxpayers, finds a new study published by the Fraser Institute, an independent, non-partisan Canadian public policy think tank.
Federal government employment has grown significantly faster than the Canadian population starting in 2015/16, and we’re already seeing the consequences,” said Ben Eisen, senior fellow at the Fraser Institute and author of Growing Government Workforce Puts Pressure on Federal Finances, the first in a series of studies on federal reform.
The study finds that between 2015/16 and 2022/23, the latest year of data available, the number of full-time federal workers has increased by 26.1 per cent compared to growth in the overall Canadian population of 9.1 per cent.
“Growth in federal employment has almost tripled the rate of population growth since 2015/16, which is simply unsustainable” commented Eisen.
How much will this growth in government cost Canadian taxpayers?
According to the study, if federal hiring had simply kept pace with the rate of Canada’s population growth taxpayers would have saved $7.5 billion.
The reduced spending on federal employees would lower the federal deficit, which is expected to exceed $35.3 billion in 2022/23.
“The growth in the number of federal employees has been a major contributor to the growth in federal government spending and the size of deficits in recent years,” Eisen said.
- The Canadian federal government workforce has grown more rapidly than the Canadian population starting in 2015/16, imposing significant costs on taxpayers.
- In fact, between 2015/16 and 2022/23, the latest year of data available, the number of full-time federal government workers has increased by 26.1 per cent, compared to growth in the overall Canadian population of 9.1 per cent.
- If federal hiring had simply kept pace with the rate of Canada’s population growth taxpayers would have saved $7.5 billion.
- The reduced spending on federal employees would lower the federal deficit, which is expected to exceed $35.3 billion in 2022/23.
Ben Eisen
Milagros Palacios
After years of mocking Trump and betting on a woke Washington, Trudeau now finds himself groveling to save Canada’s economy from MAGA’s hardball tactics.
Justin Trudeau has spent years mocking and deriding the MAGA movement, banking on a continuation of woke, progressive leadership in Washington. He bet everything on a Kamala Harris presidency, believing the days of Donald Trump’s America-first agenda were a distant memory. Now, with Trump back in office, Trudeau finds himself groveling at Mar-a-Lago, trying to salvage what’s left of Canada’s crumbling economic future.
This is the same Justin Trudeau who painted MAGA as a dangerous fringe movement, aligning himself with global elites and lecturing Americans on their supposed moral failings. He openly scoffed at Trump’s tariffs, his immigration policies, and his tough-on-China stance. Trudeau’s bet? That a Democrat-controlled America would reward his sycophantic pandering with favorable trade deals and continued subsidies for his progressive fantasies.
But Trudeau’s gamble failed. Trump is back, and Trudeau’s entire house of cards is collapsing. Canada’s economy, propped up by unfair trade advantages and U.S. energy consumption, is suddenly exposed. The 25% tariff threat on Canadian imports has Trudeau scrambling, not with bold leadership, but with empty promises and nervous laughter at Mar-a-Lago.
In a moment of pure irony, Trudeau, who once lectured Trump about values, now finds himself kneeling to kiss the ring. MAGA, what? Gone is the smug defiance, replaced by desperate platitudes about border security and economic cooperation. But let’s be clear: Trudeau isn’t there to protect Canadian interests; he’s there to save face. His government is woefully unprepared for Trump’s hardball tactics, and the Prime Minister’s office knows it.
During a recent dinner at Mar-a-Lago, President-elect Donald Trump reportedly suggested that Canada could become the 51st U.S. state if it couldn’t handle the economic impact of proposed tariffs. This remark came after Prime Minister Justin Trudeau expressed concerns that a 25% tariff on Canadian imports would “kill” Canada’s economy.
Trump’s comment underscores the significant economic interdependence between the two nations. In 2022, trade between the U.S. and Canada exceeded $900 billion, with the U.S. accounting for 63.4% of Canada’s global trade. This deep economic integration means that shifts in U.S. trade policy can have profound effects on Canada’s economy.
Trump’s quip about Canada becoming the “51st state” wasn’t just a joke; it was a power move, a reminder of who holds the cards in this relationship. While Trudeau nervously laughed, the message was clear: Canada needs the U.S. far more than the U.S. needs Canada. Trudeau’s weakness has brought us here. Instead of securing energy independence, he’s strangled Alberta’s oil industry with crippling regulations. Instead of standing up to China, he’s kowtowed to Beijing while relying on U.S. trade to keep his agenda afloat.
And now, Trudeau is at the mercy of a man he spent years mocking. Trump’s tariffs are a direct consequence of Trudeau’s inability to lead. His failure to address illegal immigration and the fentanyl crisis has made Canada not just a bad neighbor, but a liability.
Trudeau’s Liberals have always been more concerned with appearances than action, more focused on virtue signaling than real governance. But now, the bill has come due. And the man holding the ledger is none other than Donald J. Trump.
So here we are: Justin Trudeau, the woke globalist, reduced to pleading for mercy at Mar-a-Lago. His smugness replaced by desperation, his rhetoric exposed as hollow. MAGA what, indeed.
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