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Trudeau’s Digital Services Tax threatens taxpayers and the economy

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6 minute read

From the Canadian Taxpayers Federation

Author: Jay Goldberg

In other words, Trudeau is imposing a multi-billion-dollar tax on taxpayers – at a time when 50 per cent of Canadians say they’re $200 away from not being able to pay their bills.

Prime Minister Justin Trudeau managed to do two terrible things in one fell swoop: raise costs for Canadians at a time they can least afford it and risk a trade war with the United States.

The Trudeau government pushed its new Digital Services Tax through Parliament before quitting for the summer.

The government’s DST targets large foreign companies operating online marketplaces and social media platforms earning revenue from online advertising, such as Amazon, Facebook, Google and Airbnb. It is a three per cent tax on all revenue these companies generate in Canada.

Two red flags should pop up immediately for taxpayers. First, these companies won’t just eat the tax without passing costs onto consumers. And second, the United States government is sure to retaliate.

On the first point, there were clear signs that prices for Canadian consumers would increase because of this tax long before it was passed into law.

When the DST was in its proposal stage, the Parliamentary Budget Officer did an estimate of how much the government’s new tax would cost Canadians.

The PBO estimated the government’s DST would lead to an additional $7.2 billion in federal tax revenue over the next five years.

Where is that money coming from?

While major foreign companies will be the ones paying the tax directly, Canadian consumers will be hit with the bill.

It is “expected that businesses in the targeted sectors will adjust their services and prices in response to the new law,” the PBO said.

In other words, Trudeau is imposing a multi-billion-dollar tax on taxpayers – at a time when 50 per cent of Canadians say they’re $200 away from not being able to pay their bills.

Not only is Trudeau’s new DST going to increase costs for consumers, Canada also risks a trade war with the United States over the tax, which would cost Canadians even more.

In the wake of Trudeau’s DST getting through Parliament, the United States Trade Representative warned the U.S. will “do what’s necessary” to respond to the Trudeau’s new tax. USTR Katharine Tai warns she will look at “all available tools” as part of the U.S. response.

Tai’s isn’t the only voice in the U.S. calling for retaliatory action.

The Computer and Communications Industry Association, which represents tech companies like Amazon, Apple and Uber that will be targeted by Trudeau’s new tax, is calling on the Biden administration to fight back.

“With Canada’s DST now law, the time has come to announce [retaliatory] action,” said the association’s vice president, Jonathan McHale.

The president and CEO of the Tax Foundation is warning that U.S. retaliation would likely come through hiking tariffs on imports from Canada.

Given that the U.S. is by far Canada’s largest trading partner, making it more expensive to get Canadian goods into the American marketplace could have a detrimental impact on Canada’s economy, costing us both economic growth and jobs.

More than two years ago, the USTR warned against the Trudeau government taking measures that “single out American firms for taxation while effectively excluding national firms engaged in similar lines of business.”

But Trudeau chose to ignore those warnings and do exactly that.

To add insult to injury, the law authorizing the Trudeau government to bring the DST into effect (whenever it so chooses) allows it to do so retroactively, all the way back to 2022. Companies could be on the hook for huge sums for tax years in which the law didn’t even exist.

No wonder the Americans are threatening to fight back.

The bottom line is that Trudeau has put Canada in a terrible position. He is risking higher prices for Canadians and tariffs on our exports to the U.S. market, all in a lust for more cash. And the revenue the government is likely to bring in through the DST, an average of $1.4 billion a year, would be spent by this government in just one day.

It’s not too late for Trudeau to back down. Cabinet could choose not to bring the tax into force and avoid retaliation from the US.

For the good of taxpayers and the Canadian economy, Trudeau must abandon the DST.

International

CBS settles with Trump over doctored 60 Minutes Harris interview

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MXM logo MxM News

CBS will pay Donald Trump more than $30 million to settle a lawsuit over a 2024 60 Minutes interview with Kamala Harris. The deal also includes a new rule requiring unedited transcripts of future candidate interviews.

Key Details:

  • Trump will receive $16 million immediately to cover legal costs, with remaining funds earmarked for pro-conservative messaging and future causes, including his presidential library.
  • CBS agreed to release full, unedited transcripts of all future presidential candidate interviews—a policy insiders are calling the “Trump Rule.”
  • Trump’s lawsuit accused CBS of deceptively editing a 60 Minutes interview with Harris in 2024 to protect her ahead of the election; the FCC later obtained the full transcript after a complaint was filed.

Diving Deeper:

CBS and Paramount Global have agreed to pay President Donald Trump more than $30 million to settle a lawsuit over a 2024 60 Minutes interview with then–Vice President Kamala Harris, Fox News Digital reported Tuesday. Trump accused the network of election interference, saying CBS selectively edited Harris to shield her from backlash in the final stretch of the campaign.

The settlement includes a $16 million upfront payment to cover legal expenses and other discretionary uses, including funding for Trump’s future presidential library. Additional funds—expected to push the total package well above $30 million—will support conservative-aligned messaging such as advertisements and public service announcements.

As part of the deal, CBS also agreed to a new editorial policy mandating the public release of full, unedited transcripts of any future interviews with presidential candidates. The internal nickname for the new rule is reportedly the “Trump Rule.”

Trump initially sought $20 billion in damages, citing a Face the Nation preview that aired Harris’s rambling response to a question about Israeli Prime Minister Benjamin Netanyahu. That portion of the interview was widely mocked. A more polished answer was aired separately during a primetime 60 Minutes special, prompting allegations that CBS intentionally split Harris’s answer to minimize political fallout.

The FCC later ordered CBS to release the full transcript and raw footage after a complaint was filed. The materials confirmed that both versions came from the same response—cut in half across different broadcasts.

CBS denied wrongdoing but the fallout rocked the network. 60 Minutes executive producer Bill Owens resigned in April after losing control over editorial decisions. CBS News President Wendy McMahon also stepped down in May, saying the company’s direction no longer aligned with her own.

Several CBS veterans strongly opposed any settlement. “The unanimous view at 60 Minutes is that there should be no settlement, and no money paid, because the lawsuit is complete bulls***,” one producer told Fox News Digital. Correspondent Scott Pelley had warned that settling would be “very damaging” to the network’s reputation.

The final agreement includes no admission of guilt and no direct personal payment to Trump—but it locks in a substantial cash payout and forces a new standard for transparency in how networks handle presidential interviews.

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International

Seattle Police Department investigating attack on journalist during Antifa protests

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From The Center Square

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“I turned around and somebody pulled him back and he kicked me in the face. I pulled out pepper spray and I nailed him in the face, and then I retreated and called 911 and then the police never showed up.” Higby said he waited for police for about 45 minutes but they never came.

Seattle Police are investigating an attack on an independent conservative journalist last weekend during anti-Trump and anti-ICE rallies in Seattle.

Cam Higby says he was assaulted by Antifa members as he attended the sometimes violent “No Kings Day” protests in Seattle at a Department of Homeland Security Building (DHS) on June 14.

Separately, independent journalist Brandi Kruse says she also was assaulted by Antifa members in Tukwila, just south of Seattle. Both attacks were captured on video posted to social media.

“It was out of nowhere, completely out of nowhere that they got violent,” said Higby, whose attack was captured on vide and posted to X. The attack left him bloodied, bruised and with a concussion that is still causing headaches, vision impairment and memory issues nearly a week later, he said.

In a Friday interview, Higby told The Center Square he had been covering the protests in Seattle all day and took a seat on the ground near the federal building by himself when the assailants came out of nowhere.

“They took over the streets, they lit fires to cars, they shot fireworks at cars. Then it’s out of nowhere where this guy yells, ‘Hey Cam, it’s time for you to leave,’ and they charged me and I knew one of them and I’d identified him earlier in the night because he threatened to kill me three weeks earlier,” Higby. told The Center Square

The attacker he was referring threatened to kill Higby in an Instagram post, he said, which was reported to police.

“They crossed the street to get to me and charged me and before I could stand up, I was pinned up against the wall,” said Higby. “They were grabbing at my gas mask and my helmet and just keeping me in place and one of them picked me up and choked me out from the rear. And then he released me, punched me twice in the head with SAP gloves which were filled with steal or lead shot. I turned around and somebody pulled him back and he kicked me in the face. I pulled out pepper spray and I nailed him in the face, and then I retreated and called 911 and then the police never showed up.”

Higby said he waited for police for about 45 minutes but they never came.

Video journalist Jonathan Cho, who was also covering protests, picked him up and took him back to his car across town, Highboy said.

Higby said he went to urgent care the next morning and then to the emergency room when his symptoms related to the concussion were getting worse.

“They said if I had a brain bleed, I’d already be dead. I think it’s very likely that if I wasn’t wearing a helmet, that I would have been either killed or critical,” Higby said.

Kruse, host of the unDivided video podcast, told The Center Square she had only been at the Tukwila protest scene for 30 seconds when she was attacked.

“I didn’t even get a chance to cover it. Within 30 seconds of walking up, I heard a couple of people shout, ‘that’s Brandi Kruse.’ And then they started to form around me, and initially it was they were blocking my camera with their umbrellas because they don’t want you to document their criminal conduct. And then they started spraying water at me, and then they got a little more aggressive,” Kruse said. “They were dumping full bottles of water and hurling bottles of water and it hit me a couple of times from behind.”

Kruse said she tried to walk away but was followed with protesters pushing signs into her face and continuing to hurl things at her.

“But the thing is they won’t let you walk away, and they don’t want you to walk away. I’m just sort of looking over my shoulder and then I see this individual coming from behind me to the right who had something that they were starting to spray. And you know, your mind goes in a million different places, and you don’t know what it could be, but as soon as it hit my eyes and I got the smell, I knew it was some sort of bug spray because it had that distinctive smell. We found out later it was this hornet and wasp killer that can spray like up to 20 feet,” said Kruse, who posted to social media video of the attack and security escort pouring water into her eyes to flush out the spray which she shared burned painfully for days.

In the assault on Higby, police say they know who the assailant is but have yet to make an arrest. Higby said he’s “10 thousand percent sure” it’s the same person who threatened him weeks before.

Higby told The Center Square he’s been informed that despite the seriousness of the assault, prosecutors may not be inclined to pursue charges.

Seattle Police responded to an email from The Center Square on Friday requesting details on the case and received the following response: “This case is an open and active investigation assigned to SPD’s homicide & Assault Unit. SPD policy prevents me from releasing suspect details or ‘leads,’” wrote Eric Munoz, detective in SPD media and public affairs.

Seattle Police Guild President Mike Solantold The Center Square in a Friday interview that he was skeptical as to whether prosecutors would pursue charges, despite the serious nature of the attack on Higby. He also condemned the lack of coverage in the mainstream media of the assaults on journalists.

“I think the bigger conversation here is why isn’t corporate media drawing attention to this political violence as they’re watching journalists get assaulted and it doesn’t appear to be covered by corporate media at all. My question is why, and the fact that that’s not happening is a major problem with what’s unfolding in our nation,” said Solan.

Kruse said she was also disappointed that members of the mainstream media have ignored the attack.

“I was getting text messages from former colleagues in television news in Seattle asking if I was OK, saying they saw the video, but then never reporting on it. So it’s not as if they’re oblivious…..if these were the proud boys, or if these were right-wing extremists and they assaulted journalists, there’s no way that it wouldn’t be covered,” said Kruse.

Kruse said she’s been in contact with officials in the Trump administration who are paying attention to the case, but has also filed a police report with Tukwila PD.

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