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Trump’s border visit comes as shutdown talks fall apart
WASHINGTON — President Donald Trump is taking the shutdown battle to the U.S.-Mexico border, seeking to bolster his case for the border wall after negotiations with Democrats blew up over his funding demands.
Trump stalked out of his meeting with congressional leaders — “I said bye-bye,” he tweeted soon after — as efforts to end the partial government shutdown fell into deeper disarray. Hundreds of thousands of federal workers now face lost paychecks on Friday.
During his stop Thursday in McAllen, Texas, Trump will visit a border patrol station for a roundtable on immigration and border security, and will get a security briefing on the border. But Trump has expressed his own doubts that his appearance and remarks will change any minds, as he seeks $5.7 billion for the wall that has been his signature promise since his presidential campaign.
McAllen is located in the Rio Grande Valley, the busiest part of the border for illegal border crossings.
The unraveling talks prompted further speculation about whether Trump would declare a national emergency and try to authorize the wall on his own if Congress won’t approve the money he’s seeking.
“I think we might work a deal, and if we don’t I might go that route,” he said.
The White House meeting in the Situation Room ended after just 14 minutes. Democrats said they asked Trump to re-open the government but that he told them if he did they wouldn’t give him money for the wall. Republicans said Trump posed a direct question to House Speaker Nancy Pelosi: If he opened the government, would she fund the wall? She said no.
Senate Democratic leader Chuck Schumer said Trump slammed his hand on the table. However, Republicans said Trump, who handed out candy at the start of the meeting, did not raise his voice and there was no table pounding.
One result was certain: The shutdown plunged into new territory with no endgame in sight. The Democrats see the idea of the long, impenetrable wall as ineffective and even immoral. Trump sees it as an absolute necessity to stop what he calls a crisis of illegal immigration, drug-smuggling and human trafficking at the border.
Trump headed to Capitol Hill earlier Wednesday, seeking to soothe jittery Republican lawmakers. He left a Republican lunch boasting of “a very, very unified party,” but GOP senators have been publicly uneasy as the standoff ripples across the lives of Americans and interrupts the economy.
During the lunch, Trump discussed the possibility of a sweeping immigration compromise with Democrats to protect some immigrants from deportation but provided no clear strategy or timeline for resolving the standoff, according to senators in the private session.
GOP unity was tested further when the House passed a bipartisan spending bill, 240-188, to reopen one shuttered department, Treasury, to ensure that tax refunds and other financial services continue. Eight Republicans joined Democrats in voting, defying the plea to stick with the White House.
There was growing concern about the toll the shutdown is taking on everyday Americans, including disruptions in payments to farmers and trouble for home buyers who are seeking government-backed mortgage loans — “serious stuff,” according to Sen. John Thune of South Dakota, the No. 2 Senate Republican.
Some Republicans were concerned about the administration’s talk of possibly declaring a national emergency at the border, seeing that as an unprecedented claim on the right of Congress to allocate funding except in the most dire circumstances.
“I prefer that we get this resolved the old-fashioned way,” Thune said.
Democrats said before the White House meeting that they would ask Trump to accept an earlier bipartisan bill that had money for border security but not the wall. Pelosi warned that the effects of hundreds of thousands of lost paychecks would begin to have an impact across the economy.
“The president could end the Trump shutdown and re-open the government today, and he should,” Pelosi said.
Tuesday night, speaking to the nation from the Oval Office for the first time, Trump argued that the wall was needed to resolve a security and humanitarian “crisis.” He blamed illegal immigration for what he said was a scourge of drugs and violence in the U.S. and asked: “How much more American blood must we shed before Congress does its job?”
Democrats in response accused Trump appealing to “fear, not facts” and manufacturing a border crisis for political gain.
In an off-the-record lunch with television anchors ahead of his speech, Trump suggested his aides had pushed him to give the address and travel to the border and that he personally did not believe either would make a difference, according to two people familiar with the meeting. But one person said it was unclear whether Trump was serious or joking. The people familiar with the meeting insisted on anonymity because they were not authorized to discuss the meeting publicly.
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Associated Press writers Jill Colvin, Colleen Long, Alan Fram and Deb Riechmann contributed to this report.
For AP’s complete coverage of the U.S. government shutdown: https://apnews.com/GovernmentShutdown
Catherine Lucey, Lisa Mascaro And Laurie Kellman, The Associated Press
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Taxpayers Federation calling on BC Government to scrap failed Carbon Tax
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.”
Uncategorized
The problem with deficits and debt
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.
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