After shutdown talks go nowhere, officials to try again

WASHINGTON — No one budged at President Donald Trump’s closed-door meeting with congressional leaders, so the partial government shutdown persisted over his demand for billions of dollars to build a wall along the U.S. border with Mexico. They’ll all try again Friday.

In public, Trump renewed his dire warnings of rapists and others at the border. But when pressed in private Wednesday by Democrats asking why he wouldn’t end the shutdown, he responded at one point, “I would look foolish if I did that.” A White House official, one of two people who described that exchange only on condition of anonymity, said the president had been trying to explain that it would be foolish not to pay for border security.

In one big shift, the new Congress will convene Thursday with Democrats taking majority control of the House, and Democratic leader Nancy Pelosi said they’d quickly pass legislation to re-open the government — without funds for the border wall.

“Nothing for the wall,” Pelosi said in an interview to air Thursday on NBC’s “Today” show. “We can go through the back and forth. No. How many more times can we say no?”

But the White House has rejected the Democratic package, and Republicans who control the Senate are hesitant to take it up without Trump on board. Senate Majority Leader Mitch McConnell called it a “total nonstarter.” Trump said ahead of his White House session with the congressional leaders that the partial shutdown will last “as long as it takes” to get the funding he wants.

“Could be a long time or could be quickly,” Trump said during lengthy public comments at a Cabinet meeting, his first public appearance of the new year. Meanwhile, the shutdown dragged through a second week, closing some parks and leaving hundreds of thousands of federal employees without pay.

Democrats said they asked Trump directly during Wednesday’s private meeting held in the Situation Room why he wouldn’t consider their package of bills. One measure would open most of the shuttered government departments at funding levels already agreed to by all sides. The other would provide temporary funding for Homeland Security, through Feb. 8, allowing talks to continue over border security.

“I said, Mr. President, Give me one good reason why you should continue your shutdown,” Senate Minority Leader Chuck Schumer said afterward. “He could not give a good answer.”

Trump’s response about looking foolish was confirmed by a White House official and another person familiar with the exchange, neither of whom was authorized to describe the exchange by name. Trump had campaigned saying Mexico would pay for the wall, but Mexico has refused.

At another point Wednesday, Trump told Pelosi that, as a “good Catholic,” she should support the wall because Vatican City has a wall, according to a congressional aide. Trump has mentioned the Vatican’s centuries-old fortifications before, including at the earlier Cabinet meeting. But Democrats have said they don’t want medieval barriers, and Pelosi has called Trump’s proposed wall along the U.S.-Mexico border immoral.

“I remain ready and willing to work with Democrats,” Trump tweeted after the meeting. “Let’s get it done!”

House Republican leader Kevin McCarthy said that there’s no need to prolong the shutdown and that he was disappointed the talks did not produce a resolution. He complained that Democrats interrupted Homeland Security Kirstjen Nielsen as she was trying to describe a dreadful situation at the border.

Nielsen, participating in the meeting by teleconference, had data about unaccompanied minors crossing the border and a spike in illegal crossings, and she tried to make the case to the group that current funding levels won’t suffice, according to the White House.

“We were hopeful that we could get more of a negotiation,” said McCarthy.

He said the leaders plan to return to the White House Friday to continue negotiations. White House spokesman Hogan Gidley said on Fox that Pelosi will be “more able to negotiate” once she is elected speaker, as expected Thursday.

The two sides have traded offers, but their talks broke down ahead of the holidays. On Wednesday, Trump also rejected his own administration’s offer to accept $2.5 billion for the wall. That proposal was made when Vice-President Mike Pence and other top officials met at the start of the shutdown with Schumer, who left saying they remained far apart. On Wednesday Trump repeatedly pushed for the $5.6 billion he has demanded.

Making his case ahead of the private afternoon session, Trump said the current border is “like a sieve” and noted the tear gas “flying” overnight to deter arrivals.

“If they knew they couldn’t come through, they wouldn’t even start,” he said at the meeting, joined by Cabinet secretaries and top advisers, including Jared Kushner and Ivanka Trump.

With no negotiations over the holidays, Trump complained he had been “lonely ” at the White House, having skipped his getaway to Mar-a-Lago in Florida. He claimed his only companions were the “machine-gunners,” referring to security personnel, and “they don’t wave, they don’t smile.” He also criticized Pelosi for visiting Hawaii.

At the Capitol on Wednesday, Pelosi said she hoped Republicans and the White House “are hearing what we have offered” to end the shutdown.

The partial government shutdown began on Dec. 22. Funding for the wall has been the sticking point in passing essential spending bills for several government departments.

Pelosi said Tuesday that Democrats would take action to “end the Trump Shutdown” by passing the legislation Thursday to reopen government.

“Senate Republicans have already supported this legislation, and if they reject it now, they will be fully complicit in chaos and destruction of the President’s third shutdown of his term,” she said in a letter to colleagues on Tuesday. “”We are giving the Republicans the opportunity to take yes for an answer,” she wrote in a letter to colleagues.

Administration officials said Trump was in no rush for a resolution to the impasse, believing he has public opinion and his base of supporters on his side. Trump himself contended it’s the Democrats who see the shutdown fight as “an election point.”

The Democratic package to end the shutdown would include one bill to temporarily fund the Department of Homeland Security at current levels — with $1.3 billion for border security, far less than Trump has said he wants for the wall — through Feb. 8 as talks would continue.

It would also include a separate measure to fund the departments of Agriculture, Interior, Housing and Urban Development and others closed by the partial shutdown. That measure would provide money through the remainder of the fiscal year, to Sept. 30.

___

Associated Press writers Laurie Kellman, Kevin Freking and Jill Colvin contributed to this report.

Lisa Mascaro And Catherine Lucey, The Associated Press

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Taxpayers Federation calling on BC Government to scrap failed Carbon Tax

Published on January 16, 2025

Todayville

From the Canadian Taxpayers Federation

By Carson Binda

BC Government promised carbon tax would reduce CO2 by 33%. It has done nothing.

The Canadian Taxpayers Federation is calling on the British Columbia government to scrap the carbon tax as new data shows the province’s carbon emissions have continued to rise, despite the oldest carbon tax in the country.

“The carbon tax isn’t reducing carbon emissions like the politicians promised,” said Carson Binda, B.C. Director for the Canadian Taxpayers Federation. “Premier David Eby needs to axe the tax now to save British Columbians money.”

Emissions data from the provincial government shows that British Columbia’s emissions have risen since the introduction of a carbon tax.

Total emissions in 2007, the last year without a provincial carbon tax, stood at 65.5 MtCO2e, while 2022 emissions data shows an increase to 65.6 MtCO2e.

When the carbon tax was introduced, the B.C. government pledged that it would reduce greenhouse gas emissions by 33 per cent.

The Eby government plans to increase the B.C. carbon tax again on April 1, 2025. After that increase, the carbon tax will add 21 cents to the cost of a litre of natural gas, 25 cents per litre of diesel and 18 cents per cubic meter of natural gas.

“The carbon tax has cost British Columbians a lot of money, but it hasn’t helped the environment as promised,” Binda said. “Eby has a simple choice: scrap the carbon tax before April 1, or force British Columbians to pay even more to heat our homes and drive to work.”

If a family fills up the minivan once per week for a year, the carbon tax will cost them $728. The carbon tax on natural gas will add $435 to the average family’s home heating bills in the 12 months after the April 1 carbon tax hike.

Other provinces, like Saskatchewan, have unilaterally stopped collecting the carbon tax on essentials like home heating and have not faced consequences from Ottawa.

“British Columbians need real relief from the costs of the provincial carbon tax,” Binda said. “Eby needs to stop waiting for permission from the leaderless federal government and scrap the tax on British Columbians.”

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The problem with deficits and debt

Published on January 13, 2025

Todayville

From the Fraser Institute

By Tegan Hill and Jake Fuss

This fiscal year (2024/25), the federal government and eight out of 10 provinces project a budget deficit, meaning they’re spending more than collecting in revenues. Unfortunately, this trend isn’t new. Many Canadian governments—including the federal government—have routinely ran deficits over the last decade.

But why should Canadians care? If you listen to some politicians (and even some economists), they say deficits—and the debt they produce—are no big deal. But in reality, the consequences of government debt are real and land squarely on everyday Canadians.

Budget deficits, which occur when the government spends more than it collects in revenue over the fiscal year, fuel debt accumulation. For example, since 2015, the federal government’s large and persistent deficits have more than doubled total federal debt, which will reach a projected $2.2 trillion this fiscal year. That has real world consequences. Here are a few of them:

Diverted Program Spending: Just as Canadians must pay interest on their own mortgages or car loans, taxpayers must pay interest on government debt. Each dollar spent paying interest is a dollar diverted from public programs such as health care and education, or potential tax relief. This fiscal year, federal debt interest costs will reach $53.7 billion or $1,301 per Canadian. And that number doesn’t include provincial government debt interest, which varies by province. In Ontario, for example, debt interest costs are projected to be $12.7 billion or $789 per Ontarian.

Higher Taxes in the Future: When governments run deficits, they’re borrowing to pay for today’s spending. But eventually someone (i.e. future generations of Canadians) must pay for this borrowing in the form of higher taxes. For example, if you’re a 16-year-old Canadian in 2025, you’ll pay an estimated $29,663 over your lifetime in additional personal income taxes (that you would otherwise not pay) due to Canada’s ballooning federal debt. By comparison, a 65-year-old will pay an estimated $2,433. Younger Canadians clearly bear a disproportionately large share of the government debt being accumulated currently.

Risks of rising interest rates: When governments run deficits, they increase demand for borrowing. In other words, governments compete with individuals, families and businesses for the savings available for borrowing. In response, interest rates rise, and subsequently, so does the cost of servicing government debt. Of course, the private sector also must pay these higher interest rates, which can reduce the level of private investment in the economy. In other words, private investment that would have occurred no longer does because of higher interest rates, which reduces overall economic growth—the foundation for job-creation and prosperity. Not surprisingly, as government debt has increased, business investment has declined—specifically, business investment per worker fell from $18,363 in 2014 to $14,687 in 2021 (inflation-adjusted).

Risk of Inflation: When governments increase spending, particularly with borrowed money, they add more money to the economy, which can fuel inflation. According to a 2023 report from Scotiabank, government spending contributed significantly to higher interest rates in Canada, accounting for an estimated 42 per cent of the increase in the Bank of Canada’s rate since the first quarter of 2022. As a result, many Canadians have seen the costs of their borrowing—mortgages, car loans, lines of credit—soar in recent years.

Recession Risks: The accumulation of deficits and debt, which do not enhance productivity in the economy, weaken the government’s ability to deal with future challenges including economic downturns because the government has less fiscal capacity available to take on more debt. That’s because during a recession, government spending automatically increases and government revenues decrease, even before policymakers react with any specific measures. For example, as unemployment rises, employment insurance (EI) payments automatically increase, while revenues for EI decrease. Therefore, when a downturn or recession hits, and the government wants to spend even more money beyond these automatic programs, it must go further into debt.

Government debt comes with major consequences for Canadians. To alleviate the pain of government debt on Canadians, our policymakers should work to balance their budgets in 2025.