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Canada’s department of government efficiency: A blueprint

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From the Canadian Taxpayers Federation

By Franco Terrazzano 

Average compensation for a federal bureaucrat is $125,300. Cutting back the bureaucracy to population growth would save taxpayers $9 billion every year

Dumb government spending doesn’t stop at the 49th parallel.

U.S. President-elect Donald Trump announced the creation of a Department of Government Efficiency, with a mandate to “dismantle government bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure federal agencies.”

Those marching orders sure would sound good in a prime minister’s mandate letter to a finance minister. And here’s the blueprint they should follow.

Begin with crazy research Canadian taxpayers are forced to subsidize.

The Social Sciences and Humanities Research Council spends $1 billion a year supporting “research and research training in the social sciences and humanities.”

Here’s a little taste of the reports it funds with your tax dollars:

  • Gender Politics in Peruvian Rock Music ($20,000)
  • Cart-ography: tracking the birth, life and death of an urban grocery cart, from work product to work tool ($105,000)
  • My Paw in Yours: Dead Pets and Transcendence of Species Divides in Experimental Art-Making Practice ($17,500)
  • Playing for Pleasure: The Affective Experience of Sexual and Erotic Video Games ($50,000)

And that’s just the tip of the iceberg.

Parks Canada put Mr. Magoo in charge of its hunting operations. It spent four years and $10,000 capturing a single bullfrog and dropped $800,000 hunting 84 deer on a B.C. Island. How can a simple hunt cost $10,000 per deer?

Well, hunting gets more expensive when instead of your grandpa’s old rifle, you use prohibited semi-automatic weapons, instead of a box of shells, you get a crate of ammo, and instead of your buddy’s old pickup, you rent a helicopter for $67,000.

Or how about the $8-million barn at Rideau Hall. Or $12,500 live senior citizen sex story shows. Or the $8,800 sex toy show in Germany. Or the millions wasted producing government podcasts no one listens to.

Then there’s government officials living high on the hog.

Governor General Mary Simon spent $71,000 on limo services in Iceland. Bureaucrats spend $76,000 a month renting art. Global Affairs Canada spends $51,000 on booze a month.

Now, the big stuff.

The size and cost of the government is out of control. Prime Minister Justin Trudeau hired 108,000 new bureaucrats. That’s a 42 per cent increase in less than a decade.

Had the bureaucracy only increased with population growth, there would be 72,491 fewer bureaucrats today.

Average compensation for a federal bureaucrat is $125,300. Cutting back the bureaucracy to population growth would save taxpayers $9 billion every year.

It’s time to stop rewarding failure with bonuses.

The feds dished out $1.5 billion in bonuses since 2015.

And the bonuses flow despite federal departments only managing to hit half of their performance targets once in the past five years.

Government executives overseeing ArriveSCAM took $340,000 in bonuses.

The Canada Mortgage and Housing Corporation rubberstamped $102 million in bonuses amid the worst housing crisis in Canadian history.

The Bank of Canada printed $20 million in bonus cheques in 2022, as inflation reached a 40-year high.

The CBC dished out $132 million in bonuses since 2015.

The next thing on the chopping block? Corporate welfare.

Trudeau put taxpayers on the hook for $30 billion in subsidies to multinational corporations like Honda,Volkswagen, Stellantis and Northvolt.

Federal corporate subsidies totalled $11.2 billion in 2022 alone.

Shutting down the federal government’s seven regional development agencies would save taxpayers an estimated $1.5 billion annually.

True efficiency would also mean eliminating failing government operations altogether. The feds should sell any Crown corporation that can, or should, be left to the private sector.

Here are a few examples.

The CBC, which takes more than $1 billion from taxpayers annually.

Canada Post, which lost $1.2 billion in the last two years and forecasts “larger, unsustainable losses in future years.”

VIA Rail, took $1.8 billion in taxpayer cash during the past five years just to cover operating losses.

The bad news for taxpayers is we pay too much tax because the government wastes too money. The list of wasteful spending in this article is far from exhaustive.

Other examples include the multi-billion dollar gun confiscation that police officers say won’t work, the $25-billion equalization scheme and taxpayer-funded media bailouts, among others.

The good news is a champion of taxpayers could make massive cuts and barely anyone outside the Ottawa bubble would notice.

This is the blueprint to slash Ottawa’s wasteful, bloated bureaucracy. All we need now is a prime minister with the guts to pick up the scissors.

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Massive government child-care plan wreaking havoc across Ontario

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From the Fraser Institute

By Matthew Lau

It’s now more than four years since the federal Liberal government pledged $30 billion in spending over five years for $10-per-day national child care, and more than three years since Ontario’s Progressive Conservative government signed a $13.2 billion deal with the federal government to deliver this child-care plan.

Not surprisingly, with massive government funding came massive government control. While demand for child care has increased due to the government subsidies and lower out-of-pocket costs for parents, the plan significantly restricts how child-care centres operate (including what items participating centres may purchase), and crucially, caps the proportion of government funds available to private for-profit providers.

What have families and taxpayers got for this enormous government effort? Widespread child-care shortages across Ontario.

For example, according to the City of Ottawa, the number of children (aged 0 to 5 years) on child-care waitlists has ballooned by more than 300 per cent since 2019, there are significant disparities in affordable child-care access “with nearly half of neighbourhoods underserved, and limited access in suburban and rural areas,” and families face “significantly higher” costs for before-and-after-school care for school-age children.

In addition, Ottawa families find the system “complex and difficult to navigate” and “fewer child care options exist for children with special needs.” And while 42 per cent of surveyed parents need flexible child care (weekends, evenings, part-time care), only one per cent of child-care centres offer these flexible options. These are clearly not encouraging statistics, and show that a government-knows-best approach does not properly anticipate the diverse needs of diverse families.

Moreover, according to the Peel Region’s 2025 pre-budget submission to the federal government (essentially, a list of asks and recommendations), it “has maximized its for-profit allocation, leaving 1,460 for-profit spaces on a waitlist.” In other words, families can’t access $10-per-day child care—the central promise of the plan—because the government has capped the number of for-profit centres.

Similarly, according to Halton Region’s pre-budget submission to the provincial government, “no additional families can be supported with affordable child care” because, under current provincial rules, government funding can only be used to reduce child-care fees for families already in the program.

And according to a March 2025 Oxford County report, the municipality is experiencing a shortage of child-care staff and access challenges for low-income families and children with special needs. The report includes a grim bureaucratic predication that “provincial expansion targets do not reflect anticipated child care demand.”

Child-care access is also a problem provincewide. In Stratford, which has a population of roughly 33,000, the municipal government reports that more than 1,000 children are on a child-care waitlist. Similarly in Port Colborne (population 20,000), the city’s chief administrative officer told city council in April 2025 there were almost 500 children on daycare waitlists at the beginning of the school term. As of the end of last year, Guelph and Wellington County reportedly had a total of 2,569 full-day child-care spaces for children up to age four, versus a waitlist of 4,559 children—in other words, nearly two times as many children on a waitlist compared to the number of child-care spaces.

More examples. In Prince Edward County, population around 26,000, there are more than 400 children waitlisted for licensed daycare. In Kawartha Lakes and Haliburton County, the child-care waitlist is about 1,500 children long and the average wait time is four years. And in St. Mary’s, there are more than 600 children waitlisted for child care, but in recent years town staff have only been able to move 25 to 30 children off the wait list annually.

The numbers speak for themselves. Massive government spending and control over child care has created havoc for Ontario families and made child-care access worse. This cannot be a surprise. Quebec’s child-care system has been largely government controlled for decades, with poor results. Why would Ontario be any different? And how long will Premier Ford allow this debacle to continue before he asks the new prime minister to rethink the child-care policy of his predecessor?

Matthew Lau

Adjunct Scholar, Fraser Institute
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Canada Caves: Carney ditches digital services tax after criticism from Trump

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From The Center Square

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Canada caved to President Donald Trump demands by pulling its digital services tax hours before it was to go into effect on Monday.

Trump said Friday that he was ending all trade talks with Canada over the digital services tax, which he called a direct attack on the U.S. and American tech firms. The DST required foreign and domestic businesses to pay taxes on some revenue earned from engaging with online users in Canada.

“Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” the president said. “We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period.”

By Sunday, Canada relented in an effort to resume trade talks with the U.S., it’s largest trading partner.

“To support those negotiations, the Minister of Finance and National Revenue, the Honourable François-Philippe Champagne, announced today that Canada would rescind the Digital Services Tax (DST) in anticipation of a mutually beneficial comprehensive trade arrangement with the United States,” according to a statement from Canada’s Department of Finance.

Canada’s Department of Finance said that Prime Minister Mark Carney and Trump agreed to resume negotiations, aiming to reach a deal by July 21.

U.S. Commerce Secretary Howard Lutnick said Monday that the digital services tax would hurt the U.S.

“Thank you Canada for removing your Digital Services Tax which was intended to stifle American innovation and would have been a deal breaker for any trade deal with America,” he wrote on X.

Earlier this month, the two nations seemed close to striking a deal.

Trump said he and Carney had different concepts for trade between the two neighboring countries during a meeting at the G7 Summit in Kananaskis, in the Canadian Rockies.

Asked what was holding up a trade deal between the two nations at that time, Trump said they had different concepts for what that would look like.

“It’s not so much holding up, I think we have different concepts, I have a tariff concept, Mark has a different concept, which is something that some people like, but we’re going to see if we can get to the bottom of it today.”

Shortly after taking office in January, Trump hit Canada and Mexico with 25% tariffs for allowing fentanyl and migrants to cross their borders into the U.S. Trump later applied those 25% tariffs only to goods that fall outside the free-trade agreement between the three nations, called the United States-Mexico-Canada Agreement.

Trump put a 10% tariff on non-USMCA compliant potash and energy products. A 50% tariff on aluminum and steel imports from all countries into the U.S. has been in effect since June 4. Trump also put a 25% tariff on all cars and trucks not built in the U.S.

Economists, businesses and some publicly traded companies have warned that tariffs could raise prices on a wide range of consumer products.

Trump has said he wants to use tariffs to restore manufacturing jobs lost to lower-wage countries in decades past, shift the tax burden away from U.S. families, and pay down the national debt.

A tariff is a tax on imported goods paid by the person or company that imports them. The importer can absorb the cost of the tariffs or try to pass the cost on to consumers through higher prices.

Trump’s tariffs give U.S.-produced goods a price advantage over imported goods, generating revenue for the federal government.

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