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Ottawa’s GST break and rebate cheques amount to bad policy

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From the Fraser Institute

By Jake Fuss and Grady Munro

On Thursday, the House of Commons passed legislation (tabled by the Trudeau government) that would temporarily suspend the federal Goods and Services Tax (GST) on select items from December 14 to February 15 at an estimated cost of $1.6 billion, as part of the government’s “more money in your pocket” plan. The legislation now goes to the Senate for approval.

The government has delayed a separate proposal—to give Canadians $250 rebate cheques—in light of NDP demands to expand eligibility to include seniors. The original proposal would have sent cheques to an estimated 18.7 million Canadians (who worked in 2023 and earned $150,000 or less) at a cost of $4.7 billion. While aimed at all Canadians, this proposal is eerily similar to the recent move by Ontario’s Ford government, which plans to send $200 cheques to Ontarians. And again, it’s just bad policy.

Why?

Consider this. During the recent discussion about increasing Old Age Security payments by 10 per cent for seniors aged 65 to 74, former Bank of Canada governor David Dodge said, “The last thing that we need to be spending money on at this point in time is boosting consumption for relatively well-off people.” This critique also applies to the Trudeau government’s $250 rebate cheques, which would go to many well-off Canadians. Indeed, based on the government’s original proposal, a couple earning a combined household income of up to $300,000 could receive these cheques.

Moreover, because onetime payouts and temporary tax breaks don’t incentivize people to work and invest, they don’t help raise living standards. But permanent tax cuts, such as reducing personal income tax rates or lowering capital gains taxes, would provide a stronger incentive for Canadians to work more and make investments because they get to keep more of the money they earn. That would help drive economic growth, create jobs and provide more economic opportunities for workers across the income spectrum.

In fact, the Trudeau government’s plan may actually hurt economic growth in the long run. The government is expected to run budget deficits for the foreseeable future, and will likely borrow the billions needed to pay for the GST break and $250 cheques. In other words, this “relief” package will likely increase the federal deficit in 2024 and potentially 2025. By borrowing more money, the government will increase the tax burden on future generations of Canadians who ultimately must pay off today’s debt. And just as lower taxes improve economic incentives, this higher future tax burden will worsen incentives and likely stifle economic growth and reduce living standards.

Don’t be deceived. While it’s nice to get a cheque in the mail and have a couple months free of the GST for some items, the Trudeau government’s “more money in your pocket” plan is bad policy.

Jake Fuss

Director, Fiscal Studies, Fraser Institute

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Agriculture

USDA reveals plan to combat surging egg prices

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Quick Hit:

USDA Secretary Brooke Rollins has unveiled the Trump administration’s plan to tackle surging egg prices, focusing on chicken repopulation and biosecurity measures while rejecting mandatory vaccines for poultry. The move aims to counter the economic impact of mass culling under the Biden administration’s failed policies.

Key Details:

  • The USDA’s $1 billion plan includes biosecurity enhancements, rapid chicken repopulation, deregulation, and increased egg imports.
  • Rollins ruled out mandating avian flu vaccines after research showed inefficacy in countries like Mexico.
  • The administration is prioritizing securing farms against virus transmission while working on long-term solutions to stabilize egg prices.

Diving Deeper:

USDA Secretary Brooke Rollins, in an exclusive interview with Breitbart News, detailed the Trump administration’s aggressive approach to reducing skyrocketing egg prices, which she attributed to policy failures under former President Joe Biden. Rollins made it clear that President Donald Trump’s administration is focusing on restoring the poultry industry through chicken repopulation, strengthening biosecurity at farms, and removing unnecessary regulations that have stifled industry growth.

Rollins criticized Biden-era policies, noting that while the previous administration recognized the risks of avian flu, it failed to act decisively. “This has been going on now for two years. So it isn’t just regulation and all of the cost input increases and overregulation from the Biden administration, but it’s also not completely addressing the avian bird flu a couple years ago when it first hit,” she said. Under Biden, approximately 160 million chickens were culled, exacerbating supply shortages and sending prices soaring.

To address the crisis, the USDA’s plan includes five key pillars. First, the administration is investing in farm biosecurity, ensuring facilities are properly sealed to prevent virus transmission from wild fowl. Second, the repopulation of poultry flocks is being expedited by removing regulatory roadblocks. Third, the administration is pushing for deregulation in areas such as processing plant operations and California’s Proposition 12, which Rollins called “devastating” to the industry. Fourth, to alleviate immediate supply issues, the U.S. is negotiating egg imports from Turkey and other nations.

The final component of the plan, initially a proposed vaccine initiative, has been scrapped. Rollins stated that studies showed vaccinated poultry in Mexico still contracted avian flu at an alarming rate, making the approach ineffective. “I pulled that off the table,” she declared, adding that the administration is prioritizing research into alternative therapeutic solutions.

In addition to economic recovery efforts, Rollins praised President Trump’s recent address to Congress, highlighting his focus on American farmers and families. She also condemned congressional Democrats for their lack of support for crime victims’ families honored during the speech. “It is stunning,” Rollins said of their refusal to stand during key moments.

Looking ahead, Rollins reaffirmed the administration’s commitment to American farmers, emphasizing that Trump’s trade strategy is centered on protecting agricultural interests. “He is hyper-focused and passionately involved himself… fighting for our farmers, our ranchers, and entire agriculture community,” she said.

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Business

“The insanity is ending”: USDA cancels $600k grant to study transgender men’s menstruation

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Quick Hit:

Agriculture Secretary Brooke Rollins announced Friday that the Department of Agriculture has canceled a $600,000 federal grant intended for a study on menstrual cycles in transgender men. Rollins declared the decision part of broader efforts to end what she called “insanity” and restore common sense in government spending.

Key Details:

  • The grant description outlined the study’s focus on menstruation, stating that most women experience around 450 menstrual cycles over their lifetime, while also emphasizing that “transgender men and people with masculine gender identities, intersex and non-binary persons may also menstruate.”

  • Researchers aimed to explore concerns related to menstruation, including the potential use of natural fibers, such as hemp, in feminine hygiene products.

  • The American Principles Project, a conservative nonprofit, first identified the study as part of a broader review of more than 340 federally funded grants during the Biden administration, which amounted to over $128 million.

Diving Deeper:

The Department of Agriculture’s decision to revoke the $600,000 grant marks another rollback of Biden-era initiatives under the new administration. The study, awarded to Southern University Agricultural & Mechanical College, was originally slated to continue through April 2027, focusing on menstruation-related concerns, including the development of eco-friendly hygiene products.

A description of the study noted that menstruation typically begins around age 12 and continues until menopause, averaging around 450 cycles in a lifetime. The grant documentation also stated that menstruation is not limited to biological women, arguing that transgender men and other gender identities may also experience it.

Rollins took to social media platform X to confirm the cancellation, writing, “CANCELLED: $600,000 grant to study ‘menstrual cycles in transgender men.’” She credited the American Principles Project for uncovering the grant and added, “Keep sending us tips. THANK YOU, @approject! The insanity is ending and the restoration of America is underway.”

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