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Bank of Canada admits eliminating carbon tax could reduce inflation by 16%

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From LifeSiteNews

By Clare Marie Merkowsky

Bank of Canada Governor Tiff Macklem testified that cutting the tax would create a one-time reduction of inflation by 0.6%, which is 16% of Canada’s total inflation rate

Bank of Canada Governor Tiff Macklem admitted that Trudeau’s carbon tax is responsible for 16% of Canada’s current inflation rate. 

On October 30, Macklem told the House of Commons finance committee that eliminating the carbon tax would reduce inflation by 0.6%, which is 16% of Canada’s total inflation rate.  

“That would create a one-time drop in inflation of 0.6 percentage points,” Macklem told Conservative MP Philip Lawrence, who had questioned the tax’s effect on the economy. 

Currently, Canada’s inflation rate is at 3.8% which means that a decrease of 0.6% by eliminating the tax would result in a 16% decrease in the overall inflation. 

Lawrence further questioned if eliminating the tax would ease the economic situation, considering it would mean a “sizable drop in inflation.” However, Macklem explained that cutting the tax would only affect inflation for one year. 

“It would be helpful if monetary and fiscal policy was rowing in the same direction,” he added, explaining that government spending has made keeping interest rates steady a difficult task.  

“Any standard economic textbook will tell you if you cut government spending that will tend to slow growth, raise the unemployment rate, and reduce inflation,” Macklem explained.  

In September, Macklem admitted that food costs are of particular concern as “[m]eat’s up six percent, bread’s up 13 percent, coffee’s up eight percent, baby food’s up nine percent. If you look at food overall it is up nine percent.”    

To combat this inflation, the Bank of Canada has raised interest rates to 5 percent, the highest benchmark rate in 22 years. Another increase is expected in October.   

In addition to deficit spending, others have pointed to the Trudeau government’s ongoing carbon taxes and energy regulations as one of the reasons for the sharp increases in the cost of living.  

According to a March report, Trudeau’s carbon tax is costing Canadians hundreds of dollars annually as government rebates remain insufficient to compensate for the increased fuel prices.   

Last week, Prime Minster Justin Trudeau suspended his carbon tax on home heating oil, amid rising costs of living and his decreasing popularity across multiple polls.   

Under the new regulations, home heating oil is exempted from the carbon tax, while rural residents will receive a 10 percent increase in the carbon tax rebate payments. The increase is set to climb to 20 percent beginning next year.    

In March, the Parliamentary Budget Officer calculated the total carbon tax costs for fuel in 2023 minus government rebates. The steepest increase is for Albertans, who will pay an average of $710 extra per household. Following Alberta is Ontario with a $478 increase.   

Prince Edward Island households will pay an extra $465, Nova Scotia $431, Saskatchewan $410, Manitoba $386, and Newfoundland and Labrador $347.     

The increased costs are only expected to rise as a recent report revealed that a carbon tax of more than $350 per tonne is needed to reach Trudeau’s net-zero goals by 2050.   

Currently, Canadians living in provinces under the federal carbon pricing scheme pay $65 per tonne, but the Trudeau government has a goal of $170 per tonne by 2030.   

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Vacant Somali Daycares In Viral Videos Are Also Linked To $300 Million ‘Feeding Our Future’ Fraud

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From the Daily Caller News Foundation

By Melissa O’Rourke

Multiple Somali daycare centers highlighted in a viral YouTube exposé on alleged fraud in Minnesota have direct ties to a nonprofit at the center of a $300 million scam, the Minnesota Star Tribune reported Thursday.

The now-infamous videos from YouTube influencer Nick Shirley, posted Dec. 26, showed several purported Somali-run daycare centers receiving millions in taxpayer funds despite little evidence that children were actually present at the facilities. Now it turns out that five of the 10 daycare centers Shirley visited operated as meal sites for Feeding Our Future, the Minnesota-based nonprofit implicated in a massive fraud scheme that has already produced dozens of convictions, the outlet reported.

Between 2018 and 2021, those five businesses received nearly $5 million from Feeding Our Future, the outlet reported. While none of the centers in Shirley’s video have been legally accused of wrongdoing, the revelations underscore the sprawling web of fraud engulfing the state. (RELATED: Somalis Reportedly Filled Ohio Strip Mall With Potential Fraudulent Childcare Centers)

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Federal prosecutors have charged over 70 individuals — mostly from the Somali community — with stealing more than $300 million from the Federal Child Nutrition Program through Feeding Our Future. During the COVID-19 pandemic, the program funded sites across Minnesota to provide meals to children. Prosecutors say leaders of Feeding Our Future, along with dozens of associates who ran sponsored “meal sites,” submitted false or inflated meal counts to claim reimbursements.

One facility featured in Shirley’s video, the Minnesota Best Childcare Center, received $1.5 million from Feeding Our Future, according to the Minnesota Star Tribune.

Minnesota Best Childcare Center, which has been licensed by the state since 2013, did not respond to the Daily Caller News Foundation’s request for comment.

Other daycares featured in Shirley’s video have been cited dozens of times for rule violations while continuing to receive millions in state funding. The now-infamous Quality “Learing” Center was cited for 121 violations in the past three years, including for failing to report a “death, serious injury, fire or emergency as required,” according to the Star-Tribune.

The paper’s investigation found that six of the facilities featured by Shirley were either closed or employees did not open their doors.

Following that exposé, which has accumulated more than 135 million views on X, the Trump administration announced it would freeze all childcare disbursements to Minnesota while federal officials review how taxpayer dollars have flowed to licensed providers.

The fraud allegations extend beyond childcare, with prosecutors claiming millions in taxpayer funds were also stolen from Minnesota’s Housing Stabilization Services and autism treatment programs. Federal prosecutors also estimate that as much as half of the roughly $18 billion Minnesota has spent since 2018 on 14 Medicaid programs may have been siphoned off by fraudsters.

Even the state’s assisted living program has come under scrutiny, with Republican state Rep. Kristin Robbins warning that individuals connected to the Feeding Our Future scheme continue to receive millions in taxpayer funds.

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The great policy challenge for governments in Canada in 2026

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From the Fraser Institute

By Ben Eisen and Jake Fuss

According to a recent study, living standards in Canada have declined over the past five years. And the country’s economic growth has been “ugly.” Crucially, all 10 provinces are experiencing this economic stagnation—there are no exceptions to Canada’s “ugly” growth record. In 2026, reversing this trend should be the top priority for the Carney government and provincial governments across the country.

Indeed, demographic and economic data across the country tell a remarkably similar story over the past five years. While there has been some overall economic growth in almost every province, in many cases provincial populations, fuelled by record-high levels of immigration, have grown almost as quickly. Although the total amount of economic production and income has increased from coast to coast, there are more people to divide that income between. Therefore, after we account for inflation and population growth, the data show Canadians are not better off than they were before.

Let’s dive into the numbers (adjusted for inflation) for each province. In British Columbia, the economy has grown by 13.7 per cent over the past five years but the population has grown by 11.0 per cent, which means the vast majority of the increase in the size of the economy is likely due to population growth—not improvements in productivity or living standards. In fact, per-person GDP, a key indicator of living standards, averaged only 0.5 per cent per year over the last five years, which is a miserable result by historic standards.

A similar story holds in other provinces. Prince Edward Island, Nova Scotia, Quebec and Saskatchewan all experienced some economic growth over the past five years but their populations grew at almost exactly the same rate. As a result, living standards have barely budged. In the remaining provinces (Newfoundland and Labrador, New Brunswick, Ontario, Manitoba and Alberta), population growth has outstripped economic growth, which means that even though the economy grew, living standards actually declined.

This coast-to-coast stagnation of living standards is unique in Canadian history. Historically, there’s usually variation in economic performance across the country—when one region struggles, better performance elsewhere helps drive national economic growth. For example, in the early 2010s while the Ontario and Quebec economies recovered slowly from the 2008/09 recession, Alberta and other resource-rich provinces experienced much stronger growth. Over the past five years, however, there has not been a “good news” story anywhere in the country when it comes to per-person economic growth and living standards.

In reality, Canada’s recent record-high levels of immigration and population growth have helped mask the country’s economic weakness. With more people to buy and sell goods and services, the overall economy is growing but living standards have barely budged. To craft policies to help raise living standards for Canadian families, policymakers in Ottawa and every provincial capital should remove regulatory barriers, reduce taxes and responsibly manage government finances. This is the great policy challenge for governments across the country in 2026 and beyond.

Ben Eisen

Senior Fellow, Fraser Institute

Jake Fuss

Director, Fiscal Studies, Fraser Institute
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