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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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Canadians should expect even more spending in federal fall economic statement

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From the Fraser Institute

By Jake Fuss and Grady Munro

The Trudeau government will soon release its fall economic statement. Though technically intended to be an update on the fiscal plan in this year’s budget, in recent years the fall economic statement has more closely resembled a “mini-budget” that unveils new (and often significant) spending commitments and initiatives.

Let’s look at the data.

The chart below includes projections of annual federal program spending from a series of federal budgets and updates, beginning with the 2022 budget and ending with the latest 2024 budget. Program spending equals total spending minus debt interest costs, and represents discretionary spending by the federal government.

Clearly, there’s a trend that with every consecutive budget and fiscal update the Trudeau government revises spending estimates upwards. Take the last two fiscal years, 2023/24 and 2024/25, for example. Budget 2022 projected annual program spending of $436.5 billion for the 2023/24 fiscal year. Yet the fall economic statement released just months later revised that spending estimate up to $449.8 billion, and later releases showed even higher spending.

The issue is even more stark when examining spending projections for the current fiscal year. Budget 2022 projected annual spending of $441.6 billion in 2024/25. Since then, every subsequent fiscal release has revised that estimate higher and higher, to the point that Budget 2024 estimates program spending of $483.6 billion for this year—representing a $42.0 billion increase from the projections only two years ago.

Meanwhile, as spending estimates are revised upwards, plans to reduce the federal deficit are consistently pushed off into later years.

For example, the 2022 fall economic statement projected a deficit of $25.4 billion for the 2024/25 fiscal year, and declining deficits in the years to come, before reaching an eventual surplus of $4.5 billion in 2027/28. However, subsequent budgets and fiscal updates again revised those estimates. The latest budget projects a deficit of $39.8 billion in 2024/25 that will decline to a $26.8 billion deficit by 2027/28. In other words, though budgets and fiscal updates have consistently projected declining deficits between 2024/25 and 2027/28, each subsequent document has produced larger deficits throughout the fiscal outlook and pushed the timeline for balanced budgets further into the future.

These data illustrate the Trudeau government’s lack of accountability to its own fiscal plans. Though the unpredictable nature of forecasting means the government is unlikely to exactly meet future projections, it’s still reasonable to expect it will roughly follow its own fiscal plans. However, time and time again Canadians have been sold a certain plan, only to have it change dramatically mere months later due to the government’s unwillingness to restrain spending. We shouldn’t expect the upcoming fall economic statement to be any different.

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Trudeau gov’t threatens to punish tech companies that fail to censor ‘disinformation’

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From LifeSiteNews

By Anthony Murdoch

A report from the House of Commons Heritage Committee claimed that ‘some individuals and groups create disinformation to promote political ideologies including extremist views and conspiracy theories or simply to make money.’

A report from a Canadian federal committee said MPs should enact laws to penalize social media and tech companies that don’t take action to quell so-called “undesirable or questionable” content on the internet.

MPs from the ruling Liberal, New Democratic Party (NDP), and separatists Bloc Québécois party on the House of Commons Heritage Committee summarized their opinions in a report.

“The Government of Canada notes some individuals and groups create disinformation to promote political ideologies including extremist views and conspiracy theories or simply to make money,” reads the report titled Tech Giants’ Intimidation and Subversion Tactics to Evade Regulation in Canada and Globally.

“Disinformation creates ‘doubt and confusion’ and can be particularly harmful when it involves health information,” it continues.

The report notes how such “disinformation” can cause “financial harms as well as political polarization and distrust in key institutions,” adding, “The prevalence of disinformation can be difficult to determine.”

As noted in Blacklock’s Reporter, the report claims that many of Canada’s “major societal harms” have come from “unregulated social media platforms relying on algorithms to amplify content, among them disinformation and conspiracy theories.”

Of note is the committee failed to define what “disinformation” or “conspiracy theories” meant.

Most of the MPs on the committee made the recommendation that Google, Facebook, and other social media platforms, which ironically have at one point or another clamped down on free speech themselves, “put mechanisms in place to detect undesirable or questionable content that may be the product of disinformation or foreign interference and that these platforms be required to promptly identify such content and report it to users.”

“Failure to do so should result in penalties,” the report stated.

As reported by LifeSiteNews, Canadian legal group The Democracy Fund (TDF) warned that the Liberal government’s Bill C-63 seeks to further clamp down on online speech and will “weaponize” the nation’s courts to favor the ruling federal party and do nothing but create an atmosphere of “fear.”

Bill C-63 was introduced by Liberal Justice Minister Arif Virani in the House of Commons in February and was immediately blasted by constitutional experts as troublesome.

Jordan Peterson, one of Canada’s most prominent psychologists, recently accused the bill of attempting to create a pathway to allow for “Orwellian Thought Crime” to become the norm in the nation.

Conservative MPs fight back: ‘A government bureaucracy should not regulate content’

Conservative MPs fought back the Heritage Committee’s majority findings and in a Dissenting Report said the committee did not understand what the role of the internet is in society, which is that it should be free from regulation.

“The main report failed to adequately explore the state of censorship in Canada and the role played by tech giants and the current federal government,” the Conservatives wrote in their dissenting report, adding, “Canadians are increasingly being censored by the government and tech giants as to what they can see, hear and say online.”

The Conservative MPs noted that when it comes to the internet, it is “boundless,” and that “Anyone who wants to have a presence on the internet can have one.”

“A government bureaucracy should not regulate which content should be prioritized and which should be demoted,” it noted, adding, “There is space for all.”

LifeSiteNews reported how the Conservative Party has warned that Trudeau’s Bill C-63 is so flawed that it will never be able to be enforced or become known before the next election.

The law calls for the creation of a Digital Safety Commission, a digital safety ombudsperson, and the Digital Safety Office, all tasked with policing internet content.

The bill’s “hate speech” section is accompanied by broad definitions, severe penalties, and dubious tactics, including levying pre-emptive judgments against people if they are feared to be likely to commit an act of “hate” in the future.

Details of the new legislation also show the bill could lead to more people jailed for life for “hate crimes” or fined $50,000 and jailed for posts that the government defines as “hate speech” based on gender, race, or other categories.

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