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Trudeau’s Digital Services Tax threatens taxpayers and the economy

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6 minute read

From the Canadian Taxpayers Federation

Author: Jay Goldberg

In other words, Trudeau is imposing a multi-billion-dollar tax on taxpayers – at a time when 50 per cent of Canadians say they’re $200 away from not being able to pay their bills.

Prime Minister Justin Trudeau managed to do two terrible things in one fell swoop: raise costs for Canadians at a time they can least afford it and risk a trade war with the United States.

The Trudeau government pushed its new Digital Services Tax through Parliament before quitting for the summer.

The government’s DST targets large foreign companies operating online marketplaces and social media platforms earning revenue from online advertising, such as Amazon, Facebook, Google and Airbnb. It is a three per cent tax on all revenue these companies generate in Canada.

Two red flags should pop up immediately for taxpayers. First, these companies won’t just eat the tax without passing costs onto consumers. And second, the United States government is sure to retaliate.

On the first point, there were clear signs that prices for Canadian consumers would increase because of this tax long before it was passed into law.

When the DST was in its proposal stage, the Parliamentary Budget Officer did an estimate of how much the government’s new tax would cost Canadians.

The PBO estimated the government’s DST would lead to an additional $7.2 billion in federal tax revenue over the next five years.

Where is that money coming from?

While major foreign companies will be the ones paying the tax directly, Canadian consumers will be hit with the bill.

It is “expected that businesses in the targeted sectors will adjust their services and prices in response to the new law,” the PBO said.

In other words, Trudeau is imposing a multi-billion-dollar tax on taxpayers – at a time when 50 per cent of Canadians say they’re $200 away from not being able to pay their bills.

Not only is Trudeau’s new DST going to increase costs for consumers, Canada also risks a trade war with the United States over the tax, which would cost Canadians even more.

In the wake of Trudeau’s DST getting through Parliament, the United States Trade Representative warned the U.S. will “do what’s necessary” to respond to the Trudeau’s new tax. USTR Katharine Tai warns she will look at “all available tools” as part of the U.S. response.

Tai’s isn’t the only voice in the U.S. calling for retaliatory action.

The Computer and Communications Industry Association, which represents tech companies like Amazon, Apple and Uber that will be targeted by Trudeau’s new tax, is calling on the Biden administration to fight back.

“With Canada’s DST now law, the time has come to announce [retaliatory] action,” said the association’s vice president, Jonathan McHale.

The president and CEO of the Tax Foundation is warning that U.S. retaliation would likely come through hiking tariffs on imports from Canada.

Given that the U.S. is by far Canada’s largest trading partner, making it more expensive to get Canadian goods into the American marketplace could have a detrimental impact on Canada’s economy, costing us both economic growth and jobs.

More than two years ago, the USTR warned against the Trudeau government taking measures that “single out American firms for taxation while effectively excluding national firms engaged in similar lines of business.”

But Trudeau chose to ignore those warnings and do exactly that.

To add insult to injury, the law authorizing the Trudeau government to bring the DST into effect (whenever it so chooses) allows it to do so retroactively, all the way back to 2022. Companies could be on the hook for huge sums for tax years in which the law didn’t even exist.

No wonder the Americans are threatening to fight back.

The bottom line is that Trudeau has put Canada in a terrible position. He is risking higher prices for Canadians and tariffs on our exports to the U.S. market, all in a lust for more cash. And the revenue the government is likely to bring in through the DST, an average of $1.4 billion a year, would be spent by this government in just one day.

It’s not too late for Trudeau to back down. Cabinet could choose not to bring the tax into force and avoid retaliation from the US.

For the good of taxpayers and the Canadian economy, Trudeau must abandon the DST.

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Artificial Intelligence

Google denies scanning users’ email and attachments with its AI software

Published on

From LifeSiteNews

By Charles Richards

Google claims that multiple media reports are misleading and that nothing has changed with its service.

Tech giant Google is claiming that reports earlier this week released by multiple major media outlets are false and that it is not using emails and attachments to emails for its new Gemini AI software.

Fox News, Breitbart, and other outlets published stories this week instructing readers on how to “stop Google AI from scanning your Gmail.”

“Google shared a new update on Nov. 5, confirming that Gemini Deep Research can now use context from your Gmail, Drive and Chat,” Fox reported. “This allows the AI to pull information from your messages, attachments and stored files to support your research.”

Breitbart likewise said that “Google has quietly started accessing Gmail users’ private emails and attachments to train its AI models, requiring manual opt-out to avoid participation.”

Breitbart pointed to a press release issued by Malwarebytes that said the company made the changed without users knowing.

After the backlash, Google issued a response.

“These reports are misleading – we have not changed anyone’s settings. Gmail Smart Features have existed for many years, and we do not use your Gmail content for training our Gemini AI model. Lastly, we are always transparent and clear if we make changes to our terms of service and policies,” a company spokesman told ZDNET reporter Lance Whitney.

Malwarebytes has since updated its blog post to now say they “contributed to a perfect storm of misunderstanding” in their initial reporting, adding that their claim “doesn’t appear to be” true.

But the blog has also admitted that Google “does scan email content to power its own ‘smart features,’ such as spam filtering, categorization, and writing suggestions. But this is part of how Gmail normally works and isn’t the same as training Google’s generative AI models.”

“I think the most alarming thing that we saw was the regular organized stream of communication between the FBI, the Department of Homeland Security, and the largest tech companies in the country,” journalist Matt Taibbi told the U.S. Congress in December 2023 during a hearing focused on how Twitter was working hand in glove with the agency to censor users and feed the government information.

If you use Google and would like to turn off your “smart features,” click here to visit the Malwarebytes blog to be guided through the process with images. Otherwise, you can follow these five steps courtesy of Unilad Tech.

  • Open Gmail on Desktop and press the cog icon in the top right to open the settings
  • Select the ‘Smart Features’ setting in the ‘General’ section
  • Turn off the ‘Turn on smart features in Gmail, Chat, and Meet’
  • Find the Google Workplace smart features section and opt to manage the smart feature settings
  • Switch off ‘Smart features in Google Workspace’ and ‘Smart features in other Google products’

On November 11, a class action lawsuit was filed against Google in the U.S. District Court for the Northern District of California. The case alleges that Google violated the state’s Invasion of Privacy Act by discreetly activating Gemini AI to scan Gmail, Google Chat, and Google Meet messages in October 2025 without notifying users or seeking their consent.

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Focal Points

STUDY: TikTok, Instagram, and YouTube Shorts Induce Measurable “Brain Rot”

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Nicolas Hulscher, MPH's avatar Nicolas Hulscher, MPH

In 2024, “brain rot” went from an online meme to the Oxford Word of the Year.

Doomscrolling, zombie scrolling, and dopamine-driven streams of low-quality content are producing measurable cognitive impairment across an entire generation.

‘Brain rot’ is defined as “the supposed deterioration of a person’s mental or intellectual state, especially viewed as the result of overconsumption of material (now particularly online content) considered to be trivial or unchallenging.”

Our experts noticed that ‘brain rot’ gained new prominence this year as a term used to capture concerns about the impact of consuming excessive amounts of low-quality online content, especially on social media. The term increased in usage frequency by 230% between 2023 and 2024.

The first recorded use of ‘brain rot’ was found in 1854 in Henry David Thoreau’s book Walden, which reports his experiences of living a simple lifestyle in the natural world. As part of his conclusions, Thoreau criticizes society’s tendency to devalue complex ideas, or those that can be interpreted in multiple ways, in favour of simple ones, and sees this as indicative of a general decline in mental and intellectual effort: “While England endeavours to cure the potato rot, will not any endeavour to cure the brain-rot – which prevails so much more widely and fatally?”

Now, a peer-reviewed paper titled, Demystifying the New Dilemma of Brain Rot in the Digital Era: A Review, confirms that brain rot is real: the digital environment is chemically, cognitively, and psychologically degrading the developing human brain. And the damage is measurable.

According to the study, brain rot isn’t a meme. It’s a documented state of cognitive atrophy, driven by overstimulation, dopamine feedback loops, and nonstop exposure to low-quality digital content.

The authors conducted a rapid review, systematically analyzing 381 studies, filtering to 35 high-quality papers published between 2023–2024. Here’s what they found:


The Core Mechanism: Overstimulation + Dopamine Feedback Loops

The review shows that young people now average 6.5 hours per day online — primarily on algorithm-driven platforms like TikTok, Instagram Reels, YouTube Shorts, and endless-scroll feeds engineered for split-second novelty.

Most of the content involves rapid, low-information stimuli: ultrashort videos, memes, reaction clips, and trivial entertainment fragments that provide novelty without cognitive substance.

These platforms deliver rapid bursts of artificially rewarding stimuli, creating a cycle of:

  • Constant cognitive overstimulation

    The brain never enters a “rest” mode or deeper thought state.

  • Weakening of working memory

    Information is consumed too quickly to be consolidated.

  • Fragmented attention networks

    Short-form content trains the mind to expect constant novelty.

  • Difficulty processing long or complex information

    Deep reading and sustained focus become neurologically harder.

  • Mental fatigue & reduced executive function

    Chronic overstimulation taxes the prefrontal cortex — the center of planning, reasoning, and self-regulation.

The study describes this as a shift from healthy, top-down cognitive control to bottom-up, dopamine-seeking impulsivity.


Doomscrolling: Chronic Exposure to Negative, Threatening, or Grotesque Content

Many people casually use the term, but the study provides a precise functional definition:

Doomscrolling = the compulsive consumption of emotionally negative or threat-based content.

Doomscrolling produces:

  • Persistent anxiety and hypervigilance
    The brain remains locked in a threat-detection mode.
  • Rumination loops
    Negative information gets replayed mentally.
  • Physiological stress responses
    Chronic cortisol elevation impairs cognition.
  • Reduced memory formation
    Stress disrupts hippocampal consolidation.
  • Attentional fragmentation
    The brain becomes primed for scanning, not focusing.

According to the review, doomscrolling directly impairs working memory, emotional regulation, and sustained attention, accelerating cognitive wear-and-tear.


Zombie Scrolling: The Dissociative “Mindless Drift” That Damages Cognition

Doomscrolling is emotionally intense. Zombie scrolling is emotionally empty.

Zombie scrolling = passive, intentionless, dissociative swiping through content with no goal, awareness, or engagement.

Zombie scrolling is associated with:

  • Dissociation
    The mind drifts, reducing present-moment awareness.
  • Working-memory depletion
    Mindless consumption offers no cognitive stimulation.
  • Reduced attentional control
    The brain becomes conditioned to effortless, low-value input.
  • Emotional numbing & detachment
    Pleasure/reward pathways become desensitized.
  • Diminished cognitive engagement
    The brain stops initiating deeper thought patterns.

The review notes that zombie scrolling may be even more insidious because users don’t feel stressed, so they underestimate the damage — yet the cognitive decline accumulates quietly over time.


Preclinical Dementia Signatures Are Appearing in Younger Generations

A striking findings of the review is that digital-era cognitive decline now mirrors several early dementia–like neurobiological patterns. Across neuroimaging and behavioral studies, excessive digital exposure is linked to reduced hippocampal engagement, producing shallow, fragmented memory formation rather than durable consolidation.

At the same time, prefrontal cortex function—which governs planning, inhibition, and decision-making—shows measurable degradation under chronic multitasking and rapid-fire media input.

This constant overstimulation imposes a chronic cognitive load on the neocortex, creating patterns consistent with accelerated cognitive aging. Notably, several longitudinal findings suggest an elevated lifetime risk of cognitive decline, indicating these effects may not be transient. These changes are well-documented through fMRI and controlled studies included in the review, demonstrating that preclinical neurodegenerative signatures are already emerging in younger populations.


Brain Rot: A Real Neurocognitive Syndrome

The study shows a clear, repeatable pattern: excessive digital exposure to low-quality content degrades working memory, sustained attention, executive function, problem-solving, and emotional regulation. Constant notifications and rapid content switching impair information holding and focus, while overstimulation weakens planning, self-control, and cognitive flexibility.

Both doomscrolling’s emotional overload and zombie scrolling’s emotional emptiness destabilize the central nervous system, producing a more rigid, impulsive, and cognitively inefficient brain. Adolescents exhibit the most severe deficits, underscoring the risk of long-term impact.

The evidence confirms brain rot is a real, emerging early, accelerating quickly, and consuming a generation.

This is one of the core reasons why cognitive disability is now a public health concern in the United States. Cognitive impairment is skyrocketing with no end in sight:

Widespread cognitive decline before adulthood may soon become the norm as AI-generated “brain rot” content begins to drastically proliferate.


Nicolas Hulscher, MPH

Epidemiologist and Foundation Administrator, McCullough Foundation

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