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Trudeau hiking taxes again in 2024

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From the Canadian Taxpayers Federation

Author: Franco Terrazzano

 

Brace for impact, taxpayers.

Prime Minister Justin Trudeau will be reaching deeper into your pockets in the new year with payroll tax hikes, a carbon tax hike and alcohol tax hikes.

Canadians will be paying higher payroll taxes because of the mandatory rising Canada Pension Plan and Employment Insurance contributions.

If you make $73,200 or more, you’ll be paying an extra $347 in payroll taxes in 2024, for a total tax bill of $5,104.

Your employer will also be forced to fork over $5,524 in the new year.

The federal government is imposing a new tax, which it calls “CPP2.” The original CPP taxes your income at six per cent up to $68,500. The new CPP2 expands that threshold and taxes additional income at four per cent up to $73,200.

Trudeau likes to claim he’s “working to make life more affordable.” But he’s also hiking a tax that directly makes life more expensive: the carbon tax.

The carbon tax increases the price of gasoline, diesel and home heating fuels, which is a big deal in our vast, cold country. The carbon tax also makes groceries more expensive, as it increases costs for the farmers who grow our food and the truckers who deliver it.

The carbon tax will cost the average family up to $911 in 2024 even after the rebates, according to the Parliamentary Budget Officer.

The feds are also scheming up a digital services tax. This new tax targets social media platforms, companies operating digital marketplaces, and businesses earning revenue from online advertising, such as Amazon, Google, Facebook, Uber and Airbnb.

Consumers should expect to pay higher prices because of the tax. When faced with the three per cent DST in France, Amazon increased its commission charge to French vendors by the same amount.

You could be forgiven if all these tax hikes drive you to drink.

But when you pick up that case of Blue, a bottle of pinot or a mickey of rum, Trudeau will be taking an extra 4.7 per cent from you through his alcohol tax hikes.

Next year’s federal alcohol tax hike is expected to cost taxpayers almost $100 million.

Taxes in Canada already account for about half of the price of beer, 65 per cent of the price of wine and more than three quarters of the price of spirits.

While Trudeau hikes taxes, many other countries are providing relief.

The Canadian Taxpayers Federation identified 51 national governments that provided tax relief during the pandemic or to ease the burdens of inflation. Those governments include more than half of the G7 and G20 countries and two-thirds of the countries in the Organization for Economic Co-operation and Development.

Provincial governments – of all political stripes – are also providing relief.

Manitoba’s NDP government is suspending its fuel tax in the new year. Gas tax relief from Ontario’s Progressive Conservatives will save a family with a minivan and pick-up truck about $185 through June 2024. And the Liberals in Newfoundland and Labrador cut their gas tax by eight cents per litre.

The Alberta government promised to cut personal income taxes and passed legislation requiring a vote before a government can increase income or business taxes. Manitoba’s income tax cuts could save an individual taxpayer more than $2,000. Quebec lowered its income tax rate on the first two brackets. New Brunswick implemented significant income tax relief in 2023. And Prince Edward Island’s income tax cut will save middle-class taxpayers up to $200.

The fastest, simplest and easiest way for Trudeau to make all areas of life more affordable is to ditch his high-tax policies and allow Canadians to keep more of our money.

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The Payout Path For Indigenous Claims Is Now National Policy

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From the Frontier Centre for Public Policy

By Tom Flanagan

Ottawa’s refusal to test Indigenous claims in court is fuelling a billion-dollar wave of settlements and legal copycats

First Nations led the charge. Now the Métis are catching up. Ottawa’s legal surrender strategy could make payouts the new national policy.

Indigenous class-action litigation seeking compensation for historical grievances began in earnest with claims related to Indian Residential Schools. The federal government eventually chose negotiation over litigation, settling for about $5-billion with “survivors.” Then–prime minister Stephen Harper hoped this would close the chapter, but it opened the floodgates instead. Class actions have followed ever since.

By 2023, the federal government had paid or committed $69.6-billion in 2023 dollars to settle these claims. What began with residential schools expanded into day schools, boarding homes, the “Sixties Scoop,” unsafe drinking water, and foster-care settlements.

Most involved status Indians. Métis claims had generally been unsuccessful—until now.

Download the Essay. (4 pages)

Tom Flanagan is professor emeritus of political science at the University of Calgary and a senior fellow of the Frontier Centre for Public Policy.

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Canada is failing dismally at our climate goals. We’re also ruining our economy.

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From the Fraser Institute

By Annika Segelhorst and Elmira Aliakbari

Short-term climate pledges simply chase deadlines, not results

The annual meeting of the United Nations Conference of the Parties, or COP, which is dedicated to implementing international action on climate change, is now underway in Brazil. Like other signatories to the Paris Agreement, Canada is required to provide a progress update on our pledge to reduce greenhouse gas (GHG) emissions by 40 to 45 per cent below 2005 levels by 2030. After decades of massive government spending and heavy-handed regulations aimed at decarbonizing our economy, we’re far from achieving that goal. It’s time for Canada to move past arbitrary short-term goals and deadlines, and instead focus on more effective ways to support climate objectives.

Since signing the Paris Agreement in 2015, the federal government has introduced dozens of measures intended to reduce Canada’s carbon emissions, including more than $150 billion in “green economy” spending, the national carbon tax, the arbitrary cap on emissions imposed exclusively on the oil and gas sector, stronger energy efficiency requirements for buildings and automobiles, electric vehicle mandates, and stricter methane regulations for the oil and gas industry.

Recent estimates show that achieving the federal government’s target will impose significant costs on Canadians, including 164,000 job losses and a reduction in economic output of 6.2 per cent by 2030 (compared to a scenario where we don’t have these measures in place). For Canadian workers, this means losing $6,700 (each, on average) annually by 2030.

Yet even with all these costly measures, Canada will only achieve 57 per cent of its goal for emissions reductions. Several studies have already confirmed that Canada, despite massive green spending and heavy-handed regulations to decarbonize the economy over the past decade, remains off track to meet its 2030 emission reduction target.

And even if Canada somehow met its costly and stringent emission reduction target, the impact on the Earth’s climate would be minimal. Canada accounts for less than 2 per cent of global emissions, and that share is projected to fall as developing countries consume increasing quantities of energy to support rising living standards. In 2025, according to the International Energy Agency (IEA), emerging and developing economies are driving 80 per cent of the growth in global energy demand. Further, IEA projects that fossil fuels will remain foundational to the global energy mix for decades, especially in developing economies. This means that even if Canada were to aggressively pursue short-term emission reductions and all the economic costs it would imposes on Canadians, the overall climate results would be negligible.

Rather than focusing on arbitrary deadline-contingent pledges to reduce Canadian emissions, we should shift our focus to think about how we can lower global GHG emissions. A recent study showed that doubling Canada’s production of liquefied natural gas and exporting to Asia to displace an equivalent amount of coal could lower global GHG emissions by about 1.7 per cent or about 630 million tonnes of GHG emissions. For reference, that’s the equivalent to nearly 90 per cent of Canada’s annual GHG emissions. This type of approach reflects Canada’s existing strength as an energy producer and would address the fastest-growing sources of emissions, namely developing countries.

As the 2030 deadline grows closer, even top climate advocates are starting to emphasize a more pragmatic approach to climate action. In a recent memo, Bill Gates warned that unfounded climate pessimism “is causing much of the climate community to focus too much on near-term emissions goals, and it’s diverting resources from the most effective things we should be doing to improve life in a warming world.” Even within the federal ministry of Environment and Climate Change, the tone is shifting. Despite the 2030 emissions goal having been a hallmark of Canadian climate policy in recent years, in a recent interview, Minister Julie Dabrusin declined to affirm that the 2030 targets remain feasible.

Instead of scrambling to satisfy short-term national emissions limits, governments in Canada should prioritize strategies that will reduce global emissions where they’re growing the fastest.

Annika Segelhorst

Junior Economist

Elmira Aliakbari

Elmira Aliakbari

Director, Natural Resource Studies, Fraser Institute
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