Business
Government has inherent bias for more government

From the Fraser Institute
By Jason Clemens and Jake Fuss
One of the authors of this op-ed resides in a municipality, which recently launched an online survey to gauge the preferences of residents with respect to its upcoming budget, which is laudable, but the questions illustrate a problem within government: a bias for more government.
The City of Coquitlam in British Columbia asked respondents whether it should increase, decrease or simply maintain the same level of spending in 2025 for policing, recreation, water and sewage, infrastructure and others items. The problem: there wasn’t a single question on whether residents prefer tax reductions.
Moreover, there was no discussion or context about how increased spending for these activities must come from taxpayers in the form of either having more taxpayers (city population increases) and/or higher tax rates for those residing in the city. What’s clear from the survey is that the municipal government prefers to spend more.
And this bias towards more government within government is not restricted to this local municipality. Other municipalities, provincial governments and certainly the Trudeau federal government have favoured more spending.
Under Prime Minister Trudeau federal spending has reached never-before-seen levels, even after adjusting for inflation. Consider, for instance, that per-person federal spending (excluding interest costs) will reach $11,901 this fiscal year (inflation-adjusted), well above previous levels of per-person spending including during the 2008-09 financial crisis and both world wars. The rationale is that Ottawa is delivering services demanded by Canadians.
But is that true? Are Canadians demanding national pharmacare, national dental benefits and a national daycare program? The answer depends on whether the costs of those programs are included in the discussion.
A 2022 poll asked Canadians about their support for all three programs. Support ranged from 69 per cent for national daycare, to 72 per cent for dental care, to 79 per cent for pharmacare. Here’s the problem, though. The questions were asked without respondents considering any costs. In other words, the respondents were asked whether they support these programs assuming they don’t affect their taxes.
But of course, taxpayers must pay for government spending, and when those costs are included, Canadians are much less supportive. In the same poll, when increased spending is linked with an increase in the GST, support plummets to 36 per cent for daycare, 40 per cent for pharmacare and 42 per cent for dental care.
And these results are not unique. A 2020 poll by the Angus Reid Institute found 86 per cent support for a national prescription drug program—but that support drops by almost half (47 per cent) if a one-percentage point increase in the middle-class personal income tax rate is included.
One explanation for the dramatic change in support rests in another poll, which found that 74 per cent of respondents felt the average Canadian family was overtaxed.
So it’s convenient for governments to avoid connecting more spending with higher taxes.
This internal government support for more government also shows up in our tax mix. Canadian governments rely on less visible taxes than our counterparts in the OECD, a group of high-income, developed countries. For instance, Canadian governments collect 6.8 per cent of the economy (GDP) in consumption taxes such as the GST, which are quite visible and transparent because the cost shows up directly on your bill. That ranks Canada 31st of 38 OECD countries and well below the OECD average of 10.0 per cent.
Alternatively, we rely on personal income tax revenues to a much greater degree and, because these taxes are automatically deducted from the paycheques of Canadians, they are much less apparent to workers. Canada collects 12.3 per cent of the economy in personal income taxes, ranking us 6th highest for our reliance on personal income taxes and above the OECD average of 8.3 per cent.
And a complying media aids the push for more government spending. According to a recent study, when reporting on the announcement of three new federal programs (pharmacare, dental care and national daycare) the CBC and CTV only included the cost of these programs in 4 per cent of their television news coverage. Most of the coverage related to the nature of the new programs, their potential impact on Canadians, and the responses from the Conservative, NDP and Bloc Quebecois. Simply put, the main television coverage didn’t query the government on the cost of these new programs and how taxpayers would pay the bill, leaving many viewers with the mistaken impression that the programs are costless.
Indeed, it’s interesting to note that the same study found that 99.4 per cent of press releases issued by the federal government related to these three programs excluded any information on their costs or impact on the budget.
The inherent bias within government for more government is increasingly clear, and supported by a lack of skepticism in the media. Canadians need clearer information from government on the potential benefits and costs of new or expanded spending, and the media must do a better job of critically covering government initiatives. Only then can we realistically understand what Canadians actually demand from government.
Alberta
Big win for Alberta and Canada: Statement from Premier Smith

Premier Danielle Smith issued the following statement on the April 2, 2025 U.S. tariff announcement:
“Today was an important win for Canada and Alberta, as it appears the United States has decided to uphold the majority of the free trade agreement (CUSMA) between our two nations. It also appears this will continue to be the case until after the Canadian federal election has concluded and the newly elected Canadian government is able to renegotiate CUSMA with the U.S. administration.
“This is precisely what I have been advocating for from the U.S. administration for months.
“It means that the majority of goods sold into the United States from Canada will have no tariffs applied to them, including zero per cent tariffs on energy, minerals, agricultural products, uranium, seafood, potash and host of other Canadian goods.
“There is still work to be done, of course. Unfortunately, tariffs previously announced by the United States on Canadian automobiles, steel and aluminum have not been removed. The efforts of premiers and the federal government should therefore shift towards removing or significantly reducing these remaining tariffs as we go forward and ensuring affected workers across Canada are generously supported until the situation is resolved.
“I again call on all involved in our national advocacy efforts to focus on diplomacy and persuasion while avoiding unnecessary escalation. Clearly, this strategy has been the most effective to this point.
“As it appears the worst of this tariff dispute is behind us (though there is still work to be done), it is my sincere hope that we, as Canadians, can abandon the disastrous policies that have made Canada vulnerable to and overly dependent on the United States, fast-track national resource corridors, get out of the way of provincial resource development and turn our country into an independent economic juggernaut and energy superpower.”
Business
Canada may escape the worst as Trump declares America’s economic independence with Liberation Day tariffs

MxM News
Quick Hit:
On Wednesday, President Trump declared a national emergency to implement a sweeping 10% baseline tariff on all imported goods, calling it a “Declaration of Economic Independence.” Trump said the tariffs would revitalize the domestic economy, declaring that, “April 2, 2025, will forever be remembered as the day American industry was reborn.”
Key Details:
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The baseline 10% tariff will take effect Saturday, while targeted “reciprocal” tariffs—20% on the EU, 24% on Japan, and 17% on Israel—begin April 9th. Trump also imposed 25% tariffs on most Canadian and Mexican goods, as well as on all foreign-made cars and auto parts, effective early Thursday.
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Trump justified the policy by citing foreign trade restrictions and long-standing deficits. He pointed to policies in Australia, the EU, Japan, and South Korea as examples of protectionist barriers that unfairly harm American workers and industries.
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The White House estimates the 10% tariff could generate $200 billion in revenue over the next decade. Officials say the added funds would help reduce the federal deficit while giving the U.S. stronger leverage in negotiations with countries running large trade surpluses.
Diving Deeper:
President Trump on Wednesday unveiled a broad new tariff policy affecting every imported product into the United States, marking what he described as the beginning of a new economic era. Declaring a national emergency from the White House Rose Garden, the president announced a new 10% baseline tariff on all imports, alongside steeper country-specific tariffs targeting longstanding trade imbalances.
“This is our Declaration of Economic Independence,” Trump said. “Factories will come roaring back into our country — and you see it happening already.”
The tariffs, which take effect Saturday, represent a substantial increase from the pre-Trump average U.S. tariff rate and are part of what the administration is calling “Liberation Day” for American industry. Reciprocal tariffs kick in April 9th, with the administration detailing specific rates—20% for the European Union, 24% for Japan, and 17% for Israel—based on calculations tied to bilateral trade deficits.
“From 1789 to 1913, we were a tariff-backed nation,” Trump said. “The United States was proportionately the wealthiest it has ever been.” He criticized the establishment of the income tax in 1913 and blamed the 1929 economic collapse on a departure from tariff-based policies.
To underscore the move’s long-anticipated nature, Trump noted he had been warning about unfair trade for decades. “If you look at my old speeches, where I was young and very handsome… I’d be talking about how we were being ripped off by these countries,” he quipped.
The president also used the moment to renew his push for broader economic reforms, urging Congress to eliminate federal taxes on tips, overtime pay, and Social Security benefits. He also proposed allowing Americans to write off interest on domestic auto loans.
Critics of the plan warned it could raise prices for consumers, noting inflation has already risen 22% under the Biden administration. However, Trump pointed to low inflation during his first term—when he imposed more targeted tariffs—as proof his strategy can work without sparking runaway costs.
White House officials reportedly described the new baseline rate as a guardrail against countries attempting to game the system. One official explained the methodology behind the reciprocal tariffs: “The trade deficit that we have with any given country is the sum of all trade practices, the sum of all cheating,” adding that the tariffs are “half of what they could be” because “the president is lenient and he wants to be kind to the world.”
In addition to Wednesday’s sweeping changes, Trump’s administration recently imposed a 25% tariff on Chinese goods tied to fentanyl smuggling and another 25% on steel and aluminum imports—revoking previous carve-outs for countries like Brazil and South Korea. Future tariffs on semiconductors, pharmaceuticals, and raw materials such as copper and lumber are reportedly under consideration.
Trump closed his remarks with a message to foreign leaders: “To all of the foreign presidents, prime ministers, kings, queens, ambassadors… I say, ‘Terminate your own tariffs, drop your barriers.’” He declared April 2nd “the day America’s destiny was reclaimed” and promised, “This will indeed be the golden age of America.”
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