White House closer to partial shutdown with wall demand

WASHINGTON — Pushing the government to the brink of a partial shutdown, the White House is insisting that Congress provide $5 billion to build a wall along the U.S.-Mexico border despite lawmaker resistance from both parties.

Without a resolution, parts of the federal government will shut down at midnight Friday.

“We’re going to do whatever is necessary to build the border wall to stop this ongoing crisis of illegal immigration,” White House senior adviser Stephen Miller said Sunday.

Asked if that meant having a government shutdown, he said: “If it comes to it, absolutely.”

President Donald Trump said last week he would be “proud” to have a shutdown to get Congress to approve a $5 billion down payment to fulfil his campaign promise to build a border wall. But the president doesn’t have the votes from the Republican-controlled Congress to support funding for the wall at that level.

Both major political parties in Congress have suggested that Trump would likely need to make the next move to resolve the impasse. The House is taking an extended weekend break, returning Wednesday night. The Senate returns Monday after a three-day absence.

The Democratic congressional leaders, Sen. Chuck Schumer and Rep. Nancy Pelosi, have proposed no more than $1.6 billion, as outlined in a bipartisan Senate bill. The money would not go for the wall but for fencing upgrades and other border security. Democrats also offered to simply keep funding at its current level, $1.3 billion.

Showing no signs of budging, Schumer said Sunday that it was up to Trump to decide whether the federal government will partially shut down, sending thousands of federal employees home without pay during the holidays.

About one-quarter of the government would be affected, including the departments of Homeland Security, Transportation, Agriculture, State and Justice, as well as national parks.

“He is not going to get the wall in any form,” Schumer said.

Trump had neither accepted nor rejected the Democrats’ proposal as of Friday, according to the Democrats, telling them he would take a look. Trump will need Democratic votes either way, now or in the new year, for passage.

Trump, during his 2016 presidential campaign, promised that Mexico would pay for the wall. Mexico refused.

Wyoming Sen. John Barrasso, the No. 3 Republican in the Senate, said Republicans remain hopeful they can come up with a proposal that can be acceptable to Trump and pass both chambers. He suggested that could take the form of a stopgap bill that extends funding until January or a longer-term bill that includes money for border security.

“There are a lot of things you need to do with border security,” he said. “One is a physical barrier but also the technology, the manpower, the enforcement, all of those things, and our current laws are in some ways an incentive for people to come to this country illegally, and they go through great risk and possibly great harm.”

Sen. Susan Collins, R-Maine, urged senators to revisit a bill she helped push earlier this year that would provide $2.5 billion for border security, including physical barriers as well as technology and border patrol agents.

Schumer declined to say whether Democrats would be willing to consider proposals other than the two options that he and Pelosi offered.

Republicans “should join us in one of these two proposals, which would get more than enough votes passed and avoid a shutdown,” Schumer said. “Then, if the president wants to debate the wall next year, he can. I don’t think he’ll get it. But he shouldn’t use innocent workers as hostage for his temper tantrum.”

Miller and Barrasso spoke on CBS’ “Face the Nation,” Schumer appeared on NBC’s “Meet the Press,” and Collins was on ABC’s “This Week.”

Hope Yen, 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.