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Taxpayers Federation warns new Streaming Tax will make life more expensive

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From the Canadian Taxpayers Federation

Author: Franco Terrazzano

The Canadian Taxpayers Federation is criticizing the federal government for announcing a new tax on online streaming services.

“The federal government should be doing everything it can to make life more affordable and that means cutting taxes, not imposing new ones,” said Franco Terrazzano, CTF Federal Director. “Canadians have every reason to worry this new tax will mean higher prices to stream their favourite music, movies and TV shows.”

Today, the Canadian Radio-television and Telecommunications Commission announced it’s “requiring online streaming services to contribute five per cent of their Canadian revenues to support the Canadian broadcasting system.”

“These obligations will start in the 2024-2025 broadcast year and will provide an estimated $200 million per year in new funding,” according to the CRTC.

“As Canada’s affordability crisis remains a significant challenge, the government needs to avoid adding to this burden,” said Graham Davies, President and CEO of the Digital Media Association, who likened the announcement to a “discriminatory tax.”

“At a time when affordability is a major concern, Canadian consumers should prepare for a new Bill C-11 fee on their bill,” warns University of Ottawa Law Professor Michael Geist.

“If the Trudeau government wants to know why this is a bad idea, all it has to do is listen to what the prime minister said in 2018, when he warned higher taxes would be passed onto consumers,” Terrazzano said.

“The reality is that taxpayers will be the ones to pay those taxes,” said Prime Minister Justin Trudeau in 2018 when asked about streaming platforms paying higher taxes. “We … promised not to raise taxes for taxpayers who are already paying enough for their digital subscriptions and Internet.”

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Automotive

Trump warns U.S. automakers: Do not raise prices in response to tariffs

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Quick Hit:

Former President Donald Trump warned automakers not to raise car prices in response to newly imposed tariffs, arguing that the move would ultimately benefit the industry by strengthening American manufacturing. However, automakers are signaling that price increases may be unavoidable.

Key Details:

  • Trump told auto executives on a recent call that his administration would look unfavorably on price hikes due to tariffs.
  • A 25% tariff on imported vehicles and parts is set to take effect on April 2, likely driving up costs for U.S. automakers.
  • Industry analysts predict vehicle prices could rise 11% to 12% in response, despite Trump’s insistence that tariffs will benefit American manufacturing.

Diving Deeper:

In a conference call with leading automakers earlier this month, former President Donald Trump issued a stern warning: do not use his new tariffs as an excuse to raise car prices. While Trump presented the tariffs as a boon for American manufacturing, industry leaders remain unconvinced, arguing that the financial burden will inevitably lead to higher costs for consumers.

Trump’s administration is pressing ahead with a 25% tariff on all imported vehicles and parts, set to take effect on April 2. The move is aimed at reshaping trade dynamics in the auto industry, encouraging domestic manufacturing, and reversing what Trump calls the damaging effects of President Joe Biden’s electric vehicle mandates. Despite this, automakers say that rising costs on foreign parts—which many depend on—will leave them little choice but to pass expenses onto consumers.

“You’re going to see prices going down, but going to go down specifically because they’re going to buy what we’re doing, incentivizing companies to—and even countries—companies to come into America,” Trump stated at a recent event, reinforcing his stance that the tariffs will ultimately lower costs in the long run.

However, industry insiders are pushing back, warning that a rapid shift to domestic production is unrealistic. “Tariffs, at any level, cannot be offset or absorbed,” said Ray Scott, CEO of Lear, a major automotive parts supplier. His concern reflects broader anxieties within the industry, as automakers calculate the financial strain of the tariffs. Analysts at Morgan Stanley estimate that vehicle prices could increase between 11% and 12% in the coming months as the new tariffs take effect.

Automakers have been bracing for the fallout. Detroit’s major manufacturers and industry suppliers have voiced their concerns, emphasizing that transitioning supply chains and manufacturing operations back to the U.S. will take years. Meanwhile, auto retailers have stocked up on inventory, temporarily shielding consumers from price hikes. But once that supply runs low—likely by May—the full impact of the tariffs could hit.

Within the Trump administration, inflation remains a pressing concern, though Trump himself rarely discusses it publicly. His economic team is aware of the potential for tariffs to drive up costs, yet the administration’s stance remains firm: automakers must adapt without raising prices. It remains unclear, however, what actions Trump might take should automakers defy his warning.

The auto industry isn’t alone in its concerns. Executives across multiple sectors, from oil and gas to food manufacturing, have been lobbying against major tariffs, arguing that they will inevitably result in higher prices for American consumers. While Trump has largely dismissed these warnings, some analysts suggest that public dissatisfaction with rising costs played a key role in shaping the outcome of the 2024 election.

With the tariffs set to take effect in just weeks, automakers are left grappling with a difficult reality: absorb billions in new costs or risk the ire of a White House determined to remake America’s trade policies.

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Business

Labor Department cancels “America Last” spending spree spanning five continents

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Quick Hit:

The U.S. Department of Labor has scrapped nearly $600 million in foreign aid grants, including $10 million aimed at promoting “gender equity in the Mexican workplace.”

Key Details:

  • Labor Secretary Lori Chavez-DeRemer and Deputy Secretary Keith Sonderling were credited with delivering $237 million in savings through the latest round of canceled programs.

  • Among the defunded initiatives: $12.2 million for “worker empowerment” efforts in South America, $6.25 million to improve labor rights in Central American agriculture, and $5 million to promote women’s workplace participation in West Africa.

  • The Department of Government Efficiency described the cuts as necessary to realign U.S. labor policy with national interests and applauded the elimination of all 69 international grants managed by the Bureau of International Labor Affairs.

 

Diving Deeper:

The U.S. Department of Labor on Wednesday canceled $577 million in foreign aid grants, including a controversial $10 million program aimed at promoting “gender equity in the Mexican workplace,” according to documents obtained by The Washington Post. The sweeping decision to terminate all 69 active international labor grants comes as part of a larger restructuring effort led by John Clark, a senior DOL official appointed during the Trump administration.

Clark directed the department’s Bureau of International Labor Affairs (ILAB) to shut down its entire grant portfolio, citing a “lack of alignment with agency priorities and national interest.” The memo explaining the cancellations was first reported by The Washington Post and highlights a broader shift in federal labor policy toward domestic-focused initiatives.

Among the eliminated grants were high-dollar projects that had drawn criticism from watchdog groups for years. These included $12.2 million designated for “worker empowerment in South America,” $6.25 million targeting labor conditions in Honduras, Guatemala, and El Salvador, and $5 million to elevate women’s workplace participation in West Africa. Other defunded programs involved $4.3 million to support foreign migrant workers in Malaysia, $3 million to improve social protections for internal migrants in Bangladesh, and $3 million to promote “safe and inclusive work environments” in Lesotho.

The Department of Government Efficiency, also involved in the review, labeled the grants as “America Last” initiatives, and pointed to the lack of measurable outcomes and limited benefits to American workers. The agency commended the leadership of Labor Secretary Lori Chavez-DeRemer and Deputy Secretary Keith Sonderling for securing $237 million in savings during this round alone.

The cuts mark the second major cost-saving move under Chavez-DeRemer’s leadership in as many weeks. Just days earlier, she canceled an additional $33 million in funding, including a $1.5 million grant focused on increasing transparency in Uzbekistan’s cotton sector. Chavez-DeRemer, a former Republican congresswoman from Oregon, was confirmed as Labor Secretary on March 11th by a bipartisan Senate vote of 67-32.

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