Business
Budget update proves Trudeau isn’t serious about federal finances

From the Canadian Taxpayers Federation
Author: Franco Terrazzano
“when you pay the GST on a hockey stick, a tank of gas or bar of soap, every penny will go to interest charges on the federal debt. In fact, interest charges will surpass federal health-care transfers next year”
Taxpayers should brace for impact based on the finance minister’s latest projections.
Interest charges on the federal debt will go from $47 billion this year to $61 billion in 2028-29, according to the budget update.
But what does $61 billion mean to you?
Sixty-one billion is the same amount the government plans to collect with the GST in 2028-29.
So, in a few short years, when you pay the GST on a hockey stick, a tank of gas or bar of soap, every penny will go to interest charges on the federal debt.
In fact, interest charges will surpass federal health-care transfers next year.
Let the shock sink in just a little deeper: what could we do if it weren’t for the federal debt?
We could virtually double federal health spending.
Or we could completely eliminate the GST in a couple years.
Somehow the government is communicating these perplexing projections with considerable calmness.
Finance Minister Chrystia Freeland claims “the foundation of our Fall Economic Statement is our responsible fiscal plan.”
But last year the government spent $474 billion. And this year the feds plan on spending $489 billion. By 2029, the government will be spending $595 billion a year.
Pro-tip for Freeland: when you spend billions of dollars more every year, you’re saving money wrong.
And all that spending comes on top of an already ballooned base line. Even before the pandemic, the Trudeau government was spending all-time highs. And that’s after accounting for inflation and population differences.
Last year’s $35-billion deficit will increase to $40 billion this year. The feds have no plan to balance the budget. And that’s pushing up interest charges.
Again, brace yourself, because in 2028, federal debt interest charges will cost taxpayers $61 billion. For context, pre-pandemic interest charges were around $20 billion a year.
Meanwhile, if you’re hoping for meaningful tax relief from this government, you shouldn’t hold your breath.
“I absolutely understand that after three difficult years – with a global pandemic, global inflation, and global interest rate hikes – Canadians are worn out, frustrated, and feeling the squeeze,” Freeland said. “What Canadians deserve today is for us to address the very real pain that so many are feeling.”
The easiest and simplest way for Freeland to help Canadians is to stop taking so much money from taxpayers’ wallets in the first place.
But Freeland and Prime Minister Justin Trudeau aren’t even willing to provide the simplest forms of tax relief like ending the sales tax-on-tax at the gas pumps. The GST on the carbon tax alone will cost taxpayers $429 million this year.
The government isn’t willing to end the anti-democratic escalator that increases alcohol taxes every year without a single vote in Parliament. Next year’s hike will cost taxpayers about $100 million.
The government isn’t even willing to extend the same relief to all Canadians that it gave Atlantic Canadian families and remove the carbon tax from everyone’s home heating bills. The carbon tax on natural gas will cost the average family $300 this year.
The budget update is an admission that the government has a spending problem, but it still isn’t serious about managing our finances or providing real tax relief.
The solution for Trudeau and Freeland should be simple: put down the credit card and pick up some scissors.
This column was originally published in the Toronto Sun on Nov. 24, 2023.
2025 Federal Election
Alcohol tax and MP pay hike tomorrow (April 1)

The Canadian Taxpayers Federation is calling on all party leaders to stop a pair of bad policies that are scheduled to happen automatically on April 1: pay raises for members Parliament and another alcohol tax increase.
“Party leaders owe taxpayers answers to these two questions: Why do you think you deserve a pay raise and why should Canadians pay higher taxes on beer and wine?” said Franco Terrazzano, CTF Federal Director. “Politicians don’t deserve a raise while millions of Canadians are struggling.
“And the last thing Canadians need is another tax hike when they pour a cold one or uncork a bottle with that special someone.”
MPs give themselves pay raises each year on April 1, based on the average annual increase in union contracts with corporations with 500 or more employees.
The CTF estimates tomorrow’s pay raise will amount to an extra $6,200 for backbench MPs, $9,200 for ministers and $12,400 for the prime minister, based on contract data published by the federal government.
After tomorrow’s pay raise, backbench MPs will receive a $209,300 annual salary, according to CTF estimates. A minister will collect $309,100 and the prime minister will take home $418,600.
Meanwhile, the alcohol escalator automatically increases excise taxes on beer, wine and spirits every year on April 1, without a vote in Parliament. Alcohol taxes will increase by two per cent tomorrow, costing taxpayers about $40 million this year, according to Beer Canada estimates.
The alcohol escalator tax has cost taxpayers more than $900 million since it was imposed in 2017, according to Beer Canada estimates.
“Politicians are padding their pockets on the same day they’re raising beer taxes and that’s wrong,” Terrazzano said. “If party leaders want to prove they care about taxpayers, they should stop the MP pay raises.
“And if party leaders care about giving Canadian brewers, distillers and wineries a fighting chance against tariffs, it’s time to stop hitting them with alcohol tax hikes year after year.”
The CTF released Leger polling showing 79 per cent of Canadians oppose tomorrow’s MP pay raise.
2025 Federal Election
Poilievre To Create ‘Canada First’ National Energy Corridor

From Conservative Party Communications
Poilievre will create the ‘Canada First’ National Energy Corridor to rapidly approve & build the infrastructure we need to end our energy dependence on America so we can stand up to Trump from a position of strength.
Conservative Leader Pierre Poilievre announced today he will create a ‘Canada First’ National Energy Corridor to fast-track approvals for transmission lines, railways, pipelines, and other critical infrastructure across Canada in a pre-approved transport corridor entirely within Canada, transporting our resources within Canada and to the world while bypassing the United States. It will bring billions of dollars of new investment into Canada’s economy, create powerful paycheques for Canadian workers, and restore our economic independence.
“After the Lost Liberal decade, Canada is poorer, weaker, and more dependent on the United States than ever before,” said Poilievre. “My ‘Canada First National Energy Corridor’ will enable us to quickly build the infrastructure we need to strengthen our country so we can stand on our own two feet and stand up to the Americans.”
In the corridor, all levels of government will provide legally binding commitments to approve projects. This means investors will no longer face the endless regulatory limbo that has made Canadians poorer. First Nations will be involved from the outset, ensuring that economic benefits flow directly to them and that their approval is secured before any money is spent.
Between 2015 and 2020, Canada cancelled 16 major energy projects, resulting in a $176 billion hit to our economy. The Liberals killed the Energy East pipeline and passed Bill C-69, the “No-New-Pipelines” law, which makes it all but impossible to build the pipelines and energy infrastructure we need to strengthen the Canadian economy. And now, the PBO projects that the ‘Carney cap’ on Canadian energy will reduce oil and gas production by nearly 5%, slash GDP by $20.5 billion annually, and eliminate 54,400 full-time jobs by 2032. An average mine opening lead time is now nearly 18 years—23% longer than Australia and 38% longer than the US. As a result of the Lost Liberal Decade, Canada now ranks 23rd in the World Bank’s Ease of Doing Business Index for 2024, a seven-place drop since 2015.
“In 2024, Canada exported 98% of its crude oil to the United States. This leaves us too dependent on the Americans,” said Poilievre. “Our Canada First National Energy Corridor will get us out from under America’s thumb and enable us to build the infrastructure we need to sell our natural resources to new markets, bring home jobs and dollars, and make us sovereign and self-reliant to stand up to Trump from a position of strength.”
Mark Carney’s economic advice to Justin Trudeau made Canada weaker while he and his rich friends made out like bandits. While he advised Trudeau to cancel Canadian energy projects, his own company spent billions on pipelines in South America and the Middle East. And unlike our competitors Australia and America, which work with builders to get projects approved, Mark Carney and Steven Guilbeault’s radical “keep-it-in-the-ground” ideology has blocked development, killed jobs, and left Canada dependent on foreign imports.
“The choice is clear: a fourth Liberal term that will keep our resources in the ground and keep us weak and vulnerable to Trump’s threats, or a strong new Conservative government that will approve projects, build an economic fortress, bring jobs and dollars home, and put Canada First—For a Change.”
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