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The Problem With Trudeau’s Fiscal Responsibility Message

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5 minute read

From the Canadian Taxpayers Federation

By Franco Terrazzano

This year’s interest charges will cost taxpayers more than $46 billion. That’s almost $4 billion every month that’s not going to improve services or lower taxes. It’s also a cost of more than $1,000 for every Canadian.

There’s only one problem with the federal government’s messaging about saving money: the feds aren’t actually saving money.

“The foundation of our Fall Economic Statement is our responsible fiscal plan,” said Finance Minister Chrystia Freeland.

The mid-year budget update shows the government increasing spending by $15 billion this year. A far cry from Freeland’s March promise to find “savings of $15.4 billion over the next five years.”

Next year, the government will increase spending by $30 billion. And that comes on top of an already ballooned baseline.

The feds spent all-time highs before the pandemic. That means Prime Minister Justin Trudeau was spending more before the pandemic than the feds did during any single year during World War II, even after accounting for inflation and population growth.

Freeland is trying to put Canadians’ minds at ease by claiming her deficits are “modest.” Canadians have heard this before.

When running for prime minister in 2015, Trudeau promised to run a few “modest” deficits of less than $10 billion before balancing the budget in 2019. Trudeau blew that balanced budget promise by a “modest” $20 billion.

This year’s deficit is projected to hit $40 billion. Deficits in 2024 and 2025 are both projected to be $38 billion.

Is this the new modest? Four times larger than the “modest” deficits Trudeau first promised?

The mid-year budget update proves this government has no idea how to balance a budget.

In fact, the only mention of a balanced budget in Ottawa comes from the Parliamentary Budget Officer, who forecasts the next balanced budget will happen in 2035. But that relies on the economy growing every year, relatively low interest rates and no new spending.

A government too incompetent to balance the budget means Canadians are paying dearly just to service the debt.

This year’s interest charges will cost taxpayers more than $46 billion. That’s almost $4 billion every month that’s not going to improve services or lower taxes. It’s also a cost of more than $1,000 for every Canadian.

Next year, debt interest charges will surpass federal health transfers to the provinces. Soon, every penny collected from the GST will go toward servicing the debt.

As bad as the budget is, the government could keep the ship from sinking with modest spending restraint.

The government could balance the budget next year by using its own projected program spending from two budget updates ago. Instead of running a $38-billion deficit next year, taxpayers would have a $1-billion surplus if Freeland just stuck to the spending plan she created in 2021.

This highlights the root of Trudeau’s spending problem – the ratchet effect. Almost every budget document released by this government drastically increases spending.

The mid-year budget update in 2019 first projected spending in 2024 to be $421 billion. This year’s budget update shows the government will spend $519 billion in 2024.

This government’s muscle for fiscal responsibility has atrophied.

MPs from all political parties can’t help themselves from taking a pay raise every year – regardless of the struggles their constituents endure. The prime minister can’t help but spend $61,000 on Manhattan hotel rooms during a two-day anti-poverty summit.

No one in government is willing to end the hundreds of millions in bureaucratic bonuses, despite departments consistently meeting less than half of their own performance targets.

The Liberals are also unwilling to take the air out of the ballooning bureaucracy, which increased by 98,000 employees since they took power. That’s almost 40 per cent more federal employees. The bureaucracy currently consumes half of every tax dollar used in day-to-day spending.

No party in the House of Commons is willing to oppose the more than $43 billion taxpayers are being forced to give multinational corporations to build battery plants.

This government hasn’t shown one iota of fiscal restraint. In fact, the government appears to be trying its best to run up the red ink. Fortunately for taxpayers, it would only take modest spending restraint for a serious government to bring the books back into black.

Franco Terrazzano is the Federal Director of the Canadian Taxpayers Federation

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Business

Premiers fight to lower gas taxes as Trudeau hikes pump costs

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From the Canadian Taxpayers Federation

By Jay Goldberg 

Thirty-nine hundred dollars – that’s how much the typical two-car Ontario family is spending on gas taxes at the pump this year.

You read that right. That’s not the overall fuel bill. That’s just taxes.

Prime Minister Justin Trudeau keeps increasing your gas bill, while Premier Doug Ford is lowering it.

Ford’s latest gas tax cut extension is music to taxpayers’ ears. Ford’s 6.4 cent per litre gas tax cut, temporarily introduced in July 2022, is here to stay until at least next June.

Because of the cut, a two-car family has saved more than $1,000 so far. And that’s welcome news for Ontario taxpayers, because Trudeau is planning yet another carbon tax hike next April.

Trudeau has raised the overall tax burden at the pumps every April for the past five years. Next spring, he plans to raise gas taxes by another three cents per litre, bringing the overall gas tax burden for Ontarians to almost 60 cents per litre.

While Trudeau keeps hiking costs for taxpayers at the pumps, premiers of all stripes have been stepping up to the plate to blunt the impact of his punitive carbon tax.

Obviously, Ford has stepped up to the plate and has lowered gas taxes. But he’s not alone.

In Manitoba, NDP Premier Wab Kinew fully suspended the province’s 14 cent per litre gas tax for a year. And in Newfoundland, Liberal Premier Andrew Furey cut the gas tax by 8.05 cents per litre for nearly two-and-a-half years.

It’s a tale of two approaches: the Trudeau government keeps making life more expensive at the pumps, while premiers of all stripes are fighting to get costs down.

Families still have to get to work, get the kids to school and make it to hockey practice. And they can’t afford increasingly high gas taxes. Common sense premiers seem to get it, while Ottawa has its head in the clouds.

When Ford announced his gas tax cut extension, he took aim at the Liberal carbon tax mandated by the Trudeau government in Ottawa.

Ford noted the carbon tax is set to rise to 20.9 cents per litre next April, “bumping up the cost of everything once again and it’s absolutely ridiculous.”

“Our government will always fight against it,” Ford said.

But there’s some good news for taxpayers: reprieve may be on the horizon.

Federal Conservative leader Pierre Poilievre’s promises to axe the carbon tax as soon as he takes office.

With a federal election scheduled for next fall, the federal carbon tax’s days may very well be numbered.

Scrapping the carbon tax would make a huge difference in the lives of everyday Canadians.

Right now, the carbon tax costs 17.6 cents per litre. For a family filling up two cars once a week, that’s nearly $24 a week in carbon taxes at the pump.

Scrapping the carbon tax could save families more than $1,200 a year at the pumps. Plus, there would be savings on the cost of home heating, food, and virtually everything else.

While the Trudeau government likes to argue that the carbon tax rebates make up for all these additional costs, the Parliamentary Budget Officer says it’s not so.

The PBO has shown that the typical Ontario family will lose nearly $400 this year due to the carbon tax, even after the rebates.

That’s why premiers like Ford, Kinew and Furey have stepped up to the plate.

Canadians pay far too much at the pumps in taxes. While Trudeau hikes the carbon tax year after year, provincial leaders like Ford are keeping costs down and delivering meaningful relief for struggling families.

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Agriculture

Sweeping ‘pandemic prevention’ bill would give Trudeau government ability to regulate meat production

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From LifeSiteNews

By Anthony Murdoch

Bill C-293, ‘An Act respecting pandemic prevention and preparedness,’ gives sweeping powers to the federal government in the event of a crisis, including the ability to regulate meat production.

The Trudeau Liberals’ “pandemic prevention and preparedness” bill is set to become law despite concerns raised by Conservative senators that the sweeping powers it gives government, particularly over agriculture, have many concerned.

Bill C-293, or An Act respecting pandemic prevention and preparedness, is soon to pass its second reading in the Senate, which all but guarantees it will become law. Last Tuesday in the Senate, Conservative senators’ calls for caution on the bill seemed to fall on deaf ears. 

“Being from Saskatchewan I have heard from many farmers who are very concerned about this bill. Now we hear quite a short second reading speech that doesn’t really address some of those major concerns they have about the promotion of alternative proteins and about the phase-out, as Senator Plett was saying, of some of their very livelihoods,” said Conservative Senator Denise Batters during debate of the bill. 

Batters asked one of the bill’s proponents, Senator Marie-Françoise Mégie, how they will “alleviate those concerns for them other than telling them that they can come to committee, perhaps — if the committee invites them — and have their say there so that they don’t have to worry about their livelihoods being threatened?” 

In response, Mégie replied, “We have to invite the right witnesses and those who will speak about their industry, what they are doing and their concerns. Then we can find solutions with them, and we will do a thorough analysis of the issue. This was done intentionally, and I can provide all these details later. If I shared these details now, I would have to propose solutions myself and I do not have those solutions. I purposely did not present them.” 

Bill C-293 was introduced to the House of Commons in the summer of 2022 by Liberal MP Nathaniel Erskine-Smith. The House later passed the bill in June of 2024 with support from the Liberals and NDP (New Democratic Party), with the Conservatives and Bloc Quebecois opposing it.   

Bill C-293 would amend the Department of Health Act to allow the minister of health to appoint a “National pandemic prevention and preparedness coordinator from among the officials of the Public Health Agency of Canada to coordinate the activities under the Pandemic Prevention and Preparedness Act.”  

It would also, as reported by LifeSiteNews, allow the government to mandate industry help it in procuring products relevant to “pandemic preparedness, including vaccines, testing equipment and personal protective equipment, and the measures that the Minister of Industry intends to take to address any supply chain gaps identified.”

A close look at this bill shows that, if it becomes law, it would allow the government via officials of the Public Health Agency of Canada, after consulting the Minister of Agriculture and Agri-Food and of Industry and provincial governments, to “regulate commercial activities that can contribute to pandemic risk, including industrial animal agriculture.”  

The bill has been blasted by the Alberta government, who warned that it could “mandate the consumption of vegetable proteins by Canadians” as well as allow the “the federal government to tell Canadians what they can eat.” 

As reported by LifeSiteNews, the Trudeau government has funded companies that produce food made from bugs. The World Economic Forum, a globalist group with links to the Trudeau government, has as part of its Great Reset agenda the promotion of “alternative” proteins such as insects to replace or minimize the consumption of beef, pork, and other meats that they say have high “carbon” footprints.  

Trudeau’s current environmental goals are in lockstep with the United Nations’ “2030 Agenda for Sustainable Development” and include phasing out coal-fired power plants, reducing fertilizer usage, and curbing natural gas use over the coming decades, as well as curbing red meat and dairy consumption. 

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