Trump to meet with Democrats about border wall, shutdown

WASHINGTON — President Donald Trump and Democratic congressional leaders are seeking to avert a partial government shutdown amid a sharp dispute over Trump’s border wall and a lengthy to-do list that includes a major farm bill and a formal rebuke of Saudi Arabia for the slaying of journalist Jamal Khashoggi.

Trump is set to confer Tuesday at the White House with House Democratic leader Nancy Pelosi and Senate Democratic leader Chuck Schumer ahead of a Dec. 21 deadline to shut down a range of government agencies.

“Republicans still control the House, the Senate and the White House, and they have the power to keep government open,” Pelosi and Schumer said in a joint statement Monday.

“Our country cannot afford a Trump Shutdown,” the Democrats said, adding that Trump “knows full well that his wall proposal does not have the votes to pass the House and Senate and should not be an obstacle to a bipartisan agreement.”

Republican congressional leaders have repeatedly said it’s up to Trump to cut a deal with Democrats, an acknowledgment of their own inability to produce spending bills with Republican votes alone.

That gives Democrats some momentum heading into the closed-door talks, which also could veer into Trump’s request for emergency funding for deadly wildfires in California and a Republican-sponsored bill to extend expiring tax breaks and delay some health care taxes.

Before lawmakers adjourn for the year they also may consider a bipartisan criminal justice reform bill, a bill to protect special counsel Robert Mueller and a plan to overhaul the system for handling sexual harassment complaints on Capitol Hill.

By far the biggest unresolved issue is the border wall. Trump wants the next funding package to include at least $5 billion for it, an idea Democrats have flatly rejected.

Pelosi and Schumer have urged Trump to support a bill that includes a half-dozen government funding bills largely agreed upon by lawmakers, along with a separate measure that funds the Department of Homeland Security at current levels through Sept. 30. The homeland bill includes about $1.3 billion for fencing and other security measures at the border.

If Trump does not agree to that, Democrats will likely urge a continuing resolution that funds all the remaining appropriations bills at current levels through Sept. 30, an aide said. The aide was not authorized to discuss strategy by name and requested anonymity.

Trump said Friday that Congress should provide all the money he wants for the wall and called illegal immigration a “threat to the well-being of every American community.”

At an appearance in Kansas City, Missouri, Trump accused Democrats of playing a political game and said it was one he ultimately would win.

“I actually think the politics of what they’re doing is very bad for them,” Trump said of Democrats. “We’re going to very soon find out. Maybe I’m not right. But usually I’m right.”

Pelosi, who is seeking to become House speaker in January, said she and many other Democrats consider the wall “immoral, ineffective and expensive” and noted that Trump promised during the 2016 campaign that Mexico would pay for the wall, an idea Mexico has repeatedly rejected.

Protecting borders “is a responsibility we honour, but we do so by honouring our values as well,” Pelosi said last week.

Schumer said Democrats want to work with Trump to avert a shutdown, but said money for border security should not include the concrete wall Trump has envisioned. Instead, the money should be used for fencing and technology that experts say is appropriate, Schumer said.

“We do not want to let a Trump temper tantrum govern our policies or cause the shutdown of a government, which everyone on both sides of the aisle knows is the wrong idea,” Schumer said. If Trump “wants to shut down the government over Christmas over the wall, that’s his decision,” he said.

Vermont Sen. Patrick Leahy, the top Democrat on the Senate Appropriations Committee, said Trump was all that stands between fully funding the government and a shutdown.

“Time and again, President Trump has used the government of the American people as a bargaining chip for his fabricated solution to his manufactured crisis,” Leahy said Monday in a Senate speech.

Trump “wants to score a made-for-reality-TV moment and he doesn’t care how many hardworking Americans will suffer for it,” Leahy said. “This is not about border security. This is about politics, pure and simple.”

But House Majority Whip Steve Scalise, R-La., said Democrats were the ones playing politics.

Trump “wants to secure the border. He got elected president on that platform,” Scalise told Fox News Channel.

If there’s a better way to secure the border than the $5 billion plan Trump has laid out, Democrats “need to come with an alternative,” Scalise said Monday. “They can’t come and say they want to shut the government down for no reason because they don’t want border security. They’ll lose that argument with the American people.”

Senate Appropriations Chairman Richard Shelby, R-Ala., said Monday he does not believe Trump or Democrats want to shut the government down.

“When I was with him the indication was he didn’t want to shut the government down, but he did want his wall,” Shelby said.

___

AP Congressional Correspondent Lisa Mascaro contributed to this report.

Matthew Daly, 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.