Canadians should decide what to do with their money—not politicians and bureaucrats

Since taking office in 2015, the Trudeau government has expanded the federal government’s role in making decisions for individuals and families, rather than letting Canadians decide on their own. And with its latest federal budget, which it tabled last week, it once again decided that politicians and bureaucrats should determine what people want and need, rather than the people themselves.

Indeed, during its tenure the Trudeau government has introduced a slew of new programs (e.g. national dental care, $10-a-day day care), which have contributed to an expected $227.4 billion increase in annual federal program spending (total spending minus debt interest costs) from 2014/15 to 2024/25. And according to the budget, due to new programs such as national pharmacare, annual program spending will increase by another $58.4 billion by 2028/29.

In many cases the impetus for these new programs has been to increase people’s access to certain goods and services (most of which were already provided privately). But the Trudeau government has consistently ignored the fact that there are always two ways for the government to help provide a good or service—tax and spend to directly provide it, or lower taxes and leave more money in people’s pockets so they can make their own decisions—and instead simply opted for more government.

Consequently, Canadians now pay higher taxes. In 2014/15 (the year before Prime Minister Trudeau was elected), total federal revenues represented 14.0 per cent of the economy (as measured by GDP) compared to 16.6 per cent in 2024/25—meaning taxes have grown faster than the economy.

More specifically, the total tax bill (including income taxes, sales taxes, property taxes and more) of the average Canadian family has increased from 44.7 per cent of its income in 2015 to 46.1 per cent in 2023. That means the average family must work five extra days to pay off the additional tax burden.

And families are feeling the burden. According to polling data, 74 per cent of Canadians believe the average family is overtaxed. And while the Trudeau government did introduce tax changes in 2016 for middle-income families, research shows that 86 per cent of these families ended up paying higher taxes as a result. Why? Because while the government reduced the second-lowest federal personal income tax rate from 22.0 to 20.5 per cent, it simultaneously eliminated several tax credits, which effectively raised taxes on families that previously claimed these credits.

Finally, many Canadians don’t believe their tax dollars are being put to good use. When polled, only 16 per cent of Canadians said they receive good or great value for their tax dollars while 44 per cent said they receive poor or very poor value.

Simply put, the Trudeau government has consistently empowered politicians and bureaucrats to decide how Canadians should use their hard-earned money, rather than allowing individuals and families to make those decisions. With its 2024 budget, once again the Trudeau government has demonstrated its belief that it knows best.

Authors:

Jake Fuss

Director, Fiscal Studies, Fraser Institute

Grady Munro

Policy Analyst, Fraser Institute

Related Topics:#2024FederalBudget #FraserInstitute #GradyMunro #JakeFuss

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Federal Budget 2025: A responsible media would ensure Canadians know about the dismal state of federal finance

Published on October 17, 2025

Todayville

From the Fraser Institute

By Jake Fuss and Grady Munro

From 2014 to 2024, gross government debt (including federal, provincial and local governments) increased from 85.5 per cent of the economy (measured by GDP) to 110.8 per cent—a larger increase than any other G7 country. When debt grows faster than the economy, government finances are unsustainable.

Ahead of the Carney government’s long-awaited first budget scheduled for Nov. 4, a recent CBC commentary described the long-standing debate about the federal deficit and the state of federal finances as “something of a phoney war.” And that calls to balance the budget—expressed today and over the last decade—have lacked any serious discussion about the trade-offs between allowing deficits to persist versus balancing the budget.

While there’s certainly something to be said about the political theatre that regularly dominates the House of Commons—which we agree focuses too often on scoring political points instead of adequately assessing the merits of policy—it’s wrong to downplay concerns about the state of federal finances. Such concerns aren’t “phoney.”

Consider this. From 2014 to 2024, gross government debt (including federal, provincial and local governments) increased from 85.5 per cent of the economy (measured by GDP) to 110.8 per cent—a larger increase than any other G7 country. And federal gross debt increased from 53.0 per cent of the economy in 2014/15 to a projected 70.0 per cent in 2024/25. When debt grows faster than the economy, government finances are unsustainable. And the Carney government seemingly plans to continue this same approach.

In other words, the government plans to continue to spend more than it collects in revenue, continue to run massive deficits, and continue to rack up large amounts of debt.

Why should Canadians care?

Because the costs of government debt land squarely on their backs. For example, when government debt levels rise, the cost of debt interest often also rises. This year the federal government will spend a projected $54.5 billion on debt interest costs—equivalent to what it sends to the provinces for health care. Moreover, when governments borrow money, they can help drive up the cost of borrowing by increasing demand for the limited pool of savings that both government and the private sector compete for—making it more expensive for a family to take out a mortgage or businesses to attract investments. And to pay for today’s debt accumulation, governments in the future may raise taxes—a burden that will fall disproportionately on younger generations.

Again, given this alarming deterioration in the state of government finances over the last decade and the costs it imposes on Canadians, there’s nothing disingenuous about calling for more fiscal discipline from Ottawa.

Of course, getting federal finances back in order is no small task—the Trudeau government’s forays into areas of provincial jurisdiction (which carry huge price tags), combined with Carney’s massive new spending commitments for defence and other programs, mean the government cannot balance the budget without significant trade-offs. In the past, the federal government has overcome similar fiscal circumstances by committing to balance the budget and outlining a clear plan to achieve this goal. The Carney government should heed these lessons and apply them in its upcoming budget.

Jake Fuss

Director, Fiscal Studies, Fraser Institute

Grady Munro

Policy Analyst, Fraser Institute

Alberta

Alberta taxpayers should know how much their municipal governments spend

Published on October 16, 2025

Todayville Content Team

From the Fraser Institute

By Tegan Hill and Austin Thompson

Next week, voters across Alberta will go to the polls to elect their local governments. Of course, while the issues vary depending on the city, town or district, all municipal governments spend taxpayer money.

And according to a recent study, Grande Prairie County and Red Deer County were among Alberta’s highest-spending municipalities (on a per-person basis) in 2023 (the latest year of comparable data). Kara Westerlund, president of the Rural Municipalities of Alberta, said that’s no surprise—arguing that it’s expensive to serve a small number of residents spread over large areas.

That challenge is real. In rural areas, fewer people share the cost of roads, parks and emergency services. But high spending isn’t inevitable. Some rural municipalities managed to spend far less, demonstrating that local choices about what services to provide, and how to deliver them, matter.

Consider the contrast in spending levels among rural counties. In 2023, Grande Prairie County and Red Deer County spent $5,413 and $4,619 per person, respectively. Foothills County, by comparison, spent just $2,570 per person. All three counties have relatively low population densities (fewer than seven residents per square kilometre) yet their per-person spending varies widely. (In case you’re wondering, Calgary spent $3,144 and Edmonton spent $3,241.)

Some of that variation reflects differences in the cost of similar services. For example, all three counties provide fire protection but in 2023 this service cost $56.95 per person in Grande Prairie County, $38.51 in Red Deer County and $10.32 in Foothills County. Other spending differences reflect not just how much is spent, but whether a service is offered at all. For instance, in 2023 Grande Prairie County recorded $46,283 in daycare spending, while Red Deer County and Foothills County had none.

Put simply, population density alone simply doesn’t explain why some municipalities spend more than others. Much depends on the choices municipal governments make and how efficiently they deliver services.

Westerlund also dismissed comparisons showing that some counties spend more per person than nearby towns and cities, calling them “apples to oranges.” It’s true that rural municipalities and cities differ—but that doesn’t make comparisons meaningless. After all, whether apples are a good deal depends on the price of other fruit, and a savvy shopper might switch to oranges if they offer better value. In the same way, comparing municipal spending—across all types of communities—helps Albertans judge whether they get good value for their tax dollars.

Every municipality offers a different mix of services and those choices come with different price tags. Consider three nearby municipalities: in 2023, Rockyview County spent $3,419 per person, Calgary spent $3,144 and Airdrie spent $2,187. These differences reflect real trade-offs in the scope, quality and cost of local services. Albertans should decide for themselves which mix of local services best suits their needs—but they can’t do that without clear data on what those services actually cost.

A big municipal tax bill isn’t an inevitable consequence of rural living. How much gets spent in each Alberta municipality depends greatly on the choices made by the mayors, reeves and councillors Albertans will elect next week. And for Albertans to determine whether or not they get good value for their local tax dollars, they must know how much their municipality is spending.