Business
Trudeau gov’t appears to back down on ‘digital services tax’ plans
From LifeSiteNews
‘feds need to stop dreaming up new taxes and new ways to make life more expensive.’
A plan by Prime Minister Justin Trudeau’s federal government to tax the advertising revenues of non-Canadian tech giants and other companies – which could spark a major trade war and make accessing the internet more expensive – seems to be off the table, at least for now.
According to Canadian law professor Dr. Michael Geist, the Trudeau government seems to have “quietly backed down from its plans to implement a new Digital Services Tax (DST) as of January 2024.”
In its 2019 election party platform, the Trudeau Liberals had promised to impose a three percent so-called DST, which could have brought in an estimated $7.2 billion, but at the expense of tech giants that all provide services to Canadians.
In October, the head of the Canadian Taxpayers Federation (CTF) Franco Terrazzano said the “feds need to stop dreaming up new taxes and new ways to make life more expensive.”
“Prime Minister Justin Trudeau should be doing everything he can to make life more affordable, but this Digital Services Tax will mean higher prices for ordinary Canadians,” he noted.
The CTF noted that when France introduced a similar tax against tech giants such as Google, Facebook, Amazon, and other large online sites, it caused everything to get more expensive in the country.
“An economic impact assessment of the French digital services tax shows that about 55% of the total tax burden will be passed on to consumers, 40% to online vendors and only 5% borne by the digital companies targeted by the new tax,” noted the CTF.
Geist said that after months of the Trudeau government insisting a DST would be incoming next year, the government has removed that “implementation deadline” in their recent Fall Economic Statement.
When news first broke of the tax in late 2019, many U.S. Senators and Representatives signed letters asking the Canadian government to delay implementing a DST, which they warned would have created disastrous consequences.
As it stands now, a 1984 Convention Between Canada and the U.S. regarding taxes on income lets American web companies only pay tax in their home state. Indeed, a federal report even confirmed that such a tax would breach the 1984 treaty and does not work with current Canadian income tax laws.
Canadian Finance Minister Chrystia Freeland had been insisting up until recently a DST would be coming. In the summer 2023, she said, “Two years ago, we agreed to pause the implementation of our own Digital Services Tax (DST), in order to give time and space for negotiations on Pillar One. But we were clear that Canada would need to move forward with our own DST as of January 1, 2024, if the treaty to implement Pillar One has not come into force.”
Even earlier this month Freeland seemed “cautiously optimistic” a deal could be reached between Canada and the U.S. for a DST.
Geist noted that it now “appears that the optimism came from a decision to simply remove the January 1, 2024 start date,” to implement the tax and move it down the road to a later date.
As noted in the Trudeau Liberals Fall Economic Statement, “In order to protect Canada’s national economic interest, the government intends to move ahead with its longstanding plan for legislation to enact a Digital Services Tax in Canada and ensure that businesses pay their fair share of taxes and that Canada is not at a disadvantage relative to other countries.”
“Forthcoming legislation would allow the government to determine the entry-into-force date of the new Digital Services Tax, as Canada continues conversations with its international partners.”
Geist noted that the delay in implementing a DST means that it “buys time for a potential international agreement on implementing a global approach to the issue and should relieve some of the external pressure.”
Putting in place DST now would create ‘significant risks’
As it stands now, the Trudeau Liberals have already pushed forth bills that will regulate the internet. This includes the federal government’s censorship Bill C-11, the Online Streaming Act, which has been blasted by many as allowing the government more control of free speech through potential new draconian web regulations.
Another Trudeau internet censorship law, Bill C-18, the Online News Act, became law in June 2023 despite warnings that it will end free speech in Canada. This new law forces social media companies to pay Canadian legacy media for news content shared on their platforms.
Geist observed that while implanting a DST on tech giants might be more “preferable to the cross-industry subsidy model found in Bills C-11 and C-18,” pushing forth with a DST now would bring disastrous consequences and could spark a trade war.
“Moving ahead now would have created significant risks, including the prospect of billions in retaliatory tariffs. Led by Bill C-18 and the digital services tax, the government talked tough for months about regulating big tech,” wrote Geist.
“But with the (Fall Economic Statement) FES providing a massive bailout to compensate for the harm caused by the Online News Act and the decision to hold off on implementing the DST, it would appear that the tough talk has been replaced by much-needed realism on what amounted to deeply flawed policies and a weak political hand.”
Geist has continually warned that the Trudeau government’s meddling with big tech by trying to regulate the internet will not stop at “Web Giants,” but will lead to the government going after “news sites” and other “online” video sites as well.
Business
Canada needs serious tax cuts in 2026
What Prime Minister Mark Carney gives with his left hand, he takes away with his right hand.
Canadians are already overtaxed and need serious tax cuts to make life more affordable and make our economy more competitive. But at best, the New Year will bring a mixed bag for Canadian taxpayers.
The federal government is cutting income taxes, but it’s hiking payroll taxes. The government cancelled the consumer carbon tax, but it’s hammering Canadian businesses with a higher industrial carbon tax.
The federal government cut the lowest income tax bracket from 15 to 14 per cent. That will save the average taxpayer $190 in 2026, according to the Parliamentary Budget Officer.
But the government is taking more money from Canadians’ paycheques with higher payroll taxes.
Workers earning $85,000 or more will pay $5,770 in federal payroll taxes in 2026. That’s a $262 payroll tax hike. Their employers will also be forced to pay $6,219.
So Canadians will save a couple hundred bucks from the income tax cut in the new year, but many Canadians will pay a couple hundred bucks more in payroll taxes.
It’s the same story with carbon taxes.
After massive backlash from ordinary Canadians, the federal government dropped its consumer carbon tax that cost average families hundreds of dollars every year and increased the price of gas by about 18 cents per litre.
But Carney’s first budget shows he wants higher carbon taxes on Canadian businesses. Carney still hasn’t provided Canadians a clear answer on how much his business carbon tax will cost. He did, however, provide a hint during a press conference he held after signing a memorandum of understanding with the Alberta government.
“It means more than a six times increase in the industrial price on carbon,” Carney said.
Carney previously said that by “changing the carbon tax … We are making the large companies pay for everybody.”
Carney’s problem is that Canadians aren’t buying what he’s selling on carbon taxes.
Just 12 per cent of Canadians believe Carney that businesses will pay most of the cost of his carbon tax, according to a Leger poll. Nearly 70 per cent of Canadians say businesses will pass most or some of the cost to consumers.
Canadians understand that it doesn’t matter what type of lipstick politicians put on their carbon tax pig, all carbon taxes make life more expensive.
Carney is also continuing his predecessor’s tradition of automatically increasing booze taxes.
Ottawa will once again hike taxes on beer, wine and spirits in 2026 through its undemocratic alcohol tax escalator.
First passed in the 2017 federal budget, the alcohol escalator tax automatically increases federal taxes on beer, wine and spirits every year without a vote in Parliament.
Federal alcohol taxes are expected to increase by two per cent on April 1, and cost taxpayers $41 million in 2026. Since being imposed, the alcohol escalator tax has cost taxpayers about $1.6 billion, according to industry estimates.
Canadians are overtaxed and need the federal government to seriously lighten the load.
The biggest expense for the average Canadian family isn’t the home they live in, the food they eat or the clothes they buy. It’s the taxes they pay to all levels of government. More than 40 per cent of the average family’s budget goes to paying taxes, according to the Fraser Institute.
Politicians are taking too much money from Canadians. And their high taxes are driving away investment and jobs.
Canada ranks a dismal 27th out of 38 industrialized countries on individual tax competitiveness, according to the Tax Foundation. Canada ranks 22nd on business tax competitiveness. Canada is behind the United States on both measures.
A little bit of tax relief here and there isn’t going to cut it. Carney’s New Year’s resolution needs to be to embark on a massive tax cutting campaign.
Business
DOOR TO DOOR: Feds descend on Minneapolis day cares tied to massive fraud
Federal agents are now going “DOOR TO DOOR” in Minneapolis, launching what the Department of Homeland Security itself describes as an on-the-ground sweep of businesses and day-care centers tied to Minnesota’s exploding fraud scandal — a case that has already burned through at least $1 billion in taxpayer money and is rapidly closing in on Democrat Gov. Tim Walz and his administration.
ICE agents, working under the umbrella of the Department of Homeland Security, fanned out across the city this week, showing up unannounced at locations suspected of billing state and federal programs for services that never existed. One day-care worker told reporters Monday that masked agents arrived at her facility, demanded paperwork, and questioned staff about operations and enrollment.
“DHS is on the ground in Minneapolis, going DOOR TO DOOR at suspected fraud sites,” the agency posted on X. “The American people deserve answers on how their taxpayer money is being used and ARRESTS when abuse is found.”
DHS is on the ground in Minneapolis, going DOOR TO DOOR at suspected fraud sites.
The American people deserve answers on how their taxpayer money is being used and ARRESTS when abuse is found. Under the leadership of @Sec_Noem, DHS is working to deliver results. pic.twitter.com/7XtRflv36b
— Homeland Security (@DHSgov) December 29, 2025
Authorities say the confirmed fraud already totals roughly $300 million tied to fake food programs, $220 million linked to bogus autism services, and more than $300 million charged for housing assistance that never reached the people it was meant to help. Investigators from the FBI, Justice Department, and Department of Labor have now expanded their probes after a viral investigation exposed taxpayer-funded day cares that received more than $1 million each while allegedly serving few — or zero — children.
One of the most glaring examples, the Minneapolis-based Quality “Learing” Center — infamous for its misspelled sign — suddenly appeared busy Monday as national media arrived. Locals told reporters the center is typically empty and often looks permanently closed, despite receiving about $1.9 million in public funds. State inspection records show the facility has racked up 95 violations since 2019. Employees allegedly cursed at reporters while children were bused in during posted afternoon hours.
DHS officials say the “DOOR TO DOOR” operation is deliberate. In videos released online, agents are seen questioning nearby business owners about whether adjacent buildings ever had foot traffic, whether they appeared open, and whether operators used subcontractors or outside partners to pad billing. DHS Secretary Kristi Noem posted footage of agents pressing workers about business relationships and transportation services used by suspected fraud sites.
“This is a large-scale investigation,” DHS Assistant Secretary Tricia McLaughlin told the New York Post, confirming that Homeland Security Investigations and ICE are targeting fraudulent day-care and health-care centers as well as related financial schemes.
FBI Director Kash Patel warned that what investigators have uncovered so far is “just the tip of a very large iceberg.” He pointed to the bureau’s dismantling of a $250 million COVID-era food-aid scam tied to the Feeding Our Future network, a case that resulted in 78 indictments and 57 convictions. Patel has also made clear that denaturalization and deportation remain on the table for convicted fraudsters where the law allows.
Dozens of arrests have already been made across the broader scheme, many involving Somali immigrants, though federal officials stress the investigation targets criminal behavior — not communities. Some local residents say the scandal is hurting law-abiding families. One Somali Uber driver told reporters he works 16-hour days and is furious that “some people are taking advantage of the system,” making the entire community look bad.
Now, with federal agents going “DOOR TO DOOR” across Minneapolis, the era of polite indifference appears to be over. The message from Washington is blunt: the money trail is being followed, the paperwork is being checked, and the days of treating taxpayer-funded programs like an open vault are coming to an end.
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