Business
It’s time for an honest conversation about the costs of new federal programs

From the Fraser Institute
By Jake Fuss and Grady Munro
The Trudeau government will table its next budget on April 16, and with the government’s push on the initial steps of national pharmacare, it’s important to remember there’s a cost Canadians must pay for new and expanded government services.
In March, the Trudeau government and the NDP reached an agreement to introduce the first steps of a national pharmacare program that will initially cover diabetes drugs and contraceptives, but may eventually grow to cover far more. This marks the third major national social program introduced by the Trudeau government in recent years, accompanying the $10-a-day daycare and national dental care programs promised in Budget 2022.
These policies represent an approach by the federal government to expand its role in the funding and provision of social services—an approach which has support among Canadians. Polling data from 2022, which sought to understand Canadian views on new spending programs, revealed the majority of respondents supported $10-a-day daycare (69 per cent), pharmacare (79 per cent) and dental care (72 per cent)—when there were no costs attached.
The Trudeau government has chosen to fund these new programs primarily using debt. Through planned deficits and rising debt interest costs for the foreseeable future, Ottawa is shifting much of the burden of paying for today’s services onto future generations of Canadians. Put differently, the new services are not free, and must ultimately be paid for through higher taxes in the future because debt comes with costs.
It’s therefore informative to look at what happens to the popularity of these programs when the true costs are communicated to Canadians. Polling data clearly shows these new programs lose considerable support when linked to a direct cost in the form of an increase in the federal goods and services tax (GST). Indeed, support for government-funded pharmacare, dental care and daycare plummeted to well below 50 per cent of respondents if the services are paid for by increased taxes.
This is the key difference between Canada and countries such as Sweden or Denmark, which are often used as examples of countries that maintain expansive social services and income supports. These countries have gone much further than Canada regarding government provision of services, but have paid for it through corresponding tax increases applied to individuals and families today rather than through borrowed money. Moreover, the tax burden falls primarily on the middle class, which utilizes these services the most, as opposed to concentrating tax hikes on top income earners.
For example, Swedes earning more than US$62,000 per year face the country’s top marginal personal income tax rate of 52.3 per cent. In comparison, although Canada’s top marginal rate (53.5 per cent) is roughly the same level as Sweden’s, it doesn’t kick in until earnings of nearly US$177,000. Moreover, both Sweden and Denmark maintain a national sales tax rate of 25 per cent, while Canadians face sales taxes ranging from 5 per cent to 15 per cent (depending on the province). Simply put, the Nordic countries fund expansive government through high taxes on their citizens.
To put the cost of national dental care, day care and the first steps of pharmacare in context, an increase in the GST to 6 per cent from its current 5 per cent would be insufficient to pay for an estimated annual cost of at least $13 billion on these programs.
In recent years, the Trudeau government has introduced substantial social services without the corresponding tax increases required to pay for them. But increased federal spending will require higher taxes for families either today or in the future, and Canadians must remember this when deciding if they truly want these new programs.
Authors:
2025 Federal Election
The “Hardhat Vote” Has Embraced Pierre Poilievre

David Krayden
Blue collar and unionized workers are supporting Pierre Poilievre and the CPC
When President Richard Nixon won a landslide in his 1972 reelection, he did so by broadening his own personal popularity and the appeal of the Republican Party to blue collar and unionized workers. It was called the hardhat vote and many working people embraced Nixon because he seemed to be talking the same language as they were. Nixon talked about law and order and getting tough on crime; safer streets and harsher penalties for serious crime. Although unionized workers had traditionally voted for the Democratic Party and seen the Republicans as the party of the wealthy, by 1972 the Democrats had moved far to the left on social issues and were completely out of touch with average Americans who saw Democratic presidential nominee Sen. George McGovern as being soft on crime and approving of the anarchy on the streets.
It’s precisely the language that Conservative Party of Canada leader Pierre Poilievere is speaking in the 2025 federal election. As support for the New Democratic Party has collapsed throughout the election campaign, don’t think most of it is going to the Liberal Party. Poilievre has been targeting blue collar workers for years with his emphasis on the trades and talking about middle class tax cuts and safe streets. A factory or construction worker is middle class and just want an affordable lifestyle for their families. They don’t have a lot of time for the woke underbelly of the Liberals or the NDP and are increasingly reluctant to support either party because both have appealed to elites.
Listen to Karl Lovett, the president of the Local 773 of the International Brotherhood of Electrical Workers, talk about Carney corruption and why he is supporting Poilievre and the CPC in 2025.
“Mark Carney also failed to pay $5 billion in Canadian taxes by hiding his company’s assets in Bermuda above a bike shop. Hard to believe that information comes from Canada’s NDP, or at least who is left of them, because the irony is, Mark Carney has eaten all those people alive. Even the mayor of Lima has warned Canadians not to vote for Mark Carney, and why for ripping him off the poorest of the poor people in Peru. That’s who he ripped off,” Lovett said.
“Listen, there are countless other outrageous examples proving that Mark Carney doesn’t give a damn about the Canadian working man. And now, as prime minister, which he’s not, Carney is promising to put carbon tax and tariff on the auto industry. It’s another rip-off screen that’s right. We’re getting punched by Trump on one side of the border, and Carney plans to punch us on this side of the border, also pretending it’s all about climate change, and now he’s made millions off the workers’ backs. He wants more than money. He wants more power. He wants all of the power to do whatever he wants to do. Mark Carney cannot be trusted with this power. Mark Carney cannot be trusted to protect workers,” Lovett continued.
The union leader told a cheering crowd that “Mark Carney is in it for himself, and when he loses this election, you can bet Mark Carney is going to leave Canada in a New York minute. But there’s hope, there’s hope, there’s our last hope. His name is Pierre Poilievere – the .only hope for Canadian workers. You see Mark Carney fooled Justin Trudeau. We can’t let him keep fooling us.”
“Local 773, which I represent, knows Pierre Poilievre very well. We can proudly tell you that Pierre has our back. Pierre has been putting Canadian people to work and Canadian workers. First, local 773 began working with Pierre Poilievre, the Conservative Member of Parliament Chris Lewis, some years ago, when it became all too clear that the Liberal Party had zero interest in helping out workers. Upon winning the leadership of the party, Pierre made Local 773 his very first priority, he came to my union hall. Pier made the Local 773 Visitor Training Center, and he met all our workers, and he made a pledge to me; he’s not going to turn his back on us, and I believe him,” Lovett said.
Toronto Sun columnist Joe Warmington agreed with me and you can hear that entire interview, below. “Labor wants to work, and they want to, you know, build things, and they want those good, paying jobs, and that’s what Poilievre has always been about, you know.”
“He wants more power. He wants all of the power to do whatever he wants to do. Mark Carney cannot be trusted with this power. Mark Carney cannot be trusted to protect workers,”
“Again, it’s hard to know, but I always felt … and I still think that Poilievre is going to pull this off because of these reasons that you’ve raised today, I never really bought into and again, I’m just one person’s opinion, and I go on the ground. In the air, the polls are saying, I know there’s this main street poll today, maybe it’ll swing differently. But in the air, it says one thing, and on the ground, it says another thing. And that clip you just showed, that’s the ground, that’s where the workers are, that’s where the families are.”
2025 Federal Election
Poilievre will cancel Mark Carney’s new Liberal packaging law and scrap the Liberal plastic ban!

From Conservative Party Communications
Conservative Leader Pierre Poilievre promised today that a new Conservative government will stop Mark Carney’s proposed Liberal food tax and scrap the existing Liberal plastic ban. Poilievre will:
- Stop proposed new labelling and packaging requirements that will raise the cost of fresh produce by as much as 34% and cost the average Canadian household an additional $400 each year.
- Scrap the Liberal plastics ban, including the ban on straws, grocery bags, food containers and cutlery, and other single-use plastics, letting consumers and businesses choose what works for them.
- Protect restaurants, grocers, and low-income Canadians from one-size-fits-all packaging rules that disproportionately affect those who can least afford it.
“After the Lost Liberal Decade, many Canadians can barely afford to put food on the table. And now Mark Carney and the Liberals want to make it even harder with a new food packaging law that will raise the price of food–again,” said Poilievre. “A new Conservative government will keep food prices down by scrapping the Liberal plastic ban and stopping Carney’s new Liberal food tax.”
After a decade of out-of-control spending and massive tax increases, families are spending $800 more on food this year than they did in 2024, and food banks had to handle a record two million visits in a single month. In Montreal, 44 percent of CEGEP students are experiencing some form of food insecurity, while places like Hawkesbury, Kingston, Toronto and Mississauga have all declared food insecurity emergencies.
And food prices are still rocketing upwards, surging by 3.2% over the last year, with no end in sight. In the last month alone, food inflation increased by 1.9 percentage points—the largest monthly jump in food prices in decades.
As if this wasn’t bad enough, Liberals have made life even more expensive and inconvenient for Canadians by banning plastics – including everything from straws to bags to food packaging. The current Liberal ban on single-use plastics will cost Canadians $1.3 billion dollars over the next decade.
Now Mark Carney wants to make it worse by adding complicated and costly new food packaging rules that will drive up the price of food even more–in effect, a new Liberal food tax. Plastic food packaging makes up 1/3 of all plastic packaging in Canada. The proposed Liberal food tax will cost the average Canadian household an additional $400 each year, waste half a million tonnes of food, decrease access to imported fruit and produce, and increase food inflation. The Chemistry Industry Association of Canada has also warned that this tax will put up to 60,000 Canadians out of work.
“The Liberals’ ideological crusade against convenience has already driven up food prices and the last thing Canadians need is Mark Carney’s new food tax added directly to your grocery bill,” said Poilievre. “The choice for Canadians is clear, a fourth Liberal term that will make food even more expensive or a new Conservative government that will axe the food tax and bring back straws, grocery bags and other items, to make life more affordable and convenient for Canadians – For a Change.”
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