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Economy

Red Deer – Lacombe MP Blaine Calkins not impressed by first federal budget in 2 years

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4 minute read

This is what happens when people think budgets balance themselves.

Monday, Justin Trudeau released his 2021 budget, his first in two years, which introduces risky and untested economic schemes that will harm the personal financial security of Canadians by strangling job growth and raising taxes on hardworking Canadian families. It is most certainly not a balanced budget.
As a Member of Parliament from Alberta, I have some serious concerns about this budget and its impact on this province and the people that I represent.
Once again, there is nothing in this budget that addresses the increasing rates of rural crime in our province and across the country. Canadians are being victimized regularly and this government continues to turn a blind eye.
The budget also fails to properly support our agriculture sector and focuses primarily on climate issues. Farmers have for generations been the stewards of our land. Budget 2021 fails to recognize their important contributions to our environment, such as zero till and low till, and reward them for it. Rather than adopt Conservative Bill C-206 and exempt farm fuel from the full burden of the Carbon Tax they are only giving back a pittance of what farmers pay to run their farms and important implements such as grain dryers.
Budget 2021 contains nothing for our oil and gas sector, other than decelerating the capital cost allowance on technologies used in this sector, thereby further discouraging investment. It’s interesting to note that the word “pipeline” is mentioned 5 times in the budget, but not a single instance is related to the energy sector.
Unemployed Canadians hoping to see a plan to create new jobs and economic opportunities for their families are going to feel let down.
Workers who have had their wages cut and hours slashed hoping to see a plan to reopen the economy are going to feel let down.
Families that can’t afford more taxes and are struggling to save more money for their children’s education or to buy a home are going to feel let down.
While I am very concerned about what is not in the budget, I am also very concerned about what is in the budget. It seems to me that Budget 2021 is increasing and encouraging dependency on the government at a time when we should be concerned about strengthening our economy and securing our nation.
After celebrating a deficit of only $354.2 billion in 2020/21, the Liberals are excited to announce an additional deficit of $154.7 billion for 2021/22. In fact, Trudeau’s projections show that the federal debt load will nearly double to $1.4 trillion by 2026, up from $721 billion before the pandemic. With Budget 2021, Government debt will exceed 100% GDP. They have abandoned any fiscal anchors at all. It remains unfathomable to me that the Liberal government continues to mothball the oil and gas sector, the economic driver of our nation in favour of increasing financial burden on Canadians.
As I only received this budget at the same time as the rest of Canada, I will be spending the next few days reviewing this massive 724-page document.
Make no mistake, Budget 2021 is an election budget, but only if Justin Trudeau needs your vote.

Automotive

Canadian interest in electric vehicles falls for second year in a row: survey

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From LifeSiteNews

By Clare Marie Merkowsky

Canadians’ disinterest in electric vehicles comes as the Trudeau government recently mandated that all new light-duty vehicles in Canada are zero emission by 2035.

Research has revealed that Canadians are increasingly unwilling to purchase an electric vehicle (EV).

According to an April 22 survey from AutoTrader, Canadians remain skeptical of Prime Minister Justin Trudeau’s electric vehicle mandate and ongoing advertisement surrounding electric vehicles, as interest in owning one dropped for a second year in a row.

“Overall, while almost half of non-EV owners are open to buying an EV for their next vehicle, interest in EVs has declined for the second year in a row,” reported Tiffany Ding, director of insights and intelligence at AutoTrader.

In 2022, at least 68 percent of Canadians were interested in buying an electric vehicle. However, by 2023, the number declined to 56 percent. So far in 2024, there is even less interest, with only 46 percent saying they were open to purchasing one.

“AutoTrader data shows a direct correlation to gas prices and EV interest, and since gas prices have normalized from their peak in 2022, EV interest has also dropped,” a summary of the survey explained.

However, Canadians did show a slight increase of interest in hybrid vehicles, with 62 percent of those looking to purchase an electric vehicle saying they would look at a gas-electric hybrid, compared with 60 percent in 2023.

 The survey also questioned Canadians regarding Trudeau’s Zero Emission Vehicle (ZEV) mandate, which requires all new light-duty vehicles in Canada are zero-emission by 2035, essentially banning the sale of new gasoline/diesel-only powered cars.

The mandate comes despite warnings that it would cause massive chaos by threatening to collapse the nation’s power grids.

“Over 75 percent of respondents are aware of the federal government’s ZEV mandate, which requires all new light-duty vehicles sold in Canada to be zero-emission by 2035,” the survey found.

Canadians’ concerns in buying an electric vehicle include limited travel range/distance, inadequate availability of charging stations, higher purchasing costs, and concerns that they do not perform well in cold weather.

Indeed, this winter, western Canadians experienced firsthand the unreliability of Trudeau’s “renewable” energy scheme as Alberta’s power grid nearly collapsed due to a failure of wind and solar power.

Trudeau’s plan has been roundly condemned by Canadians, including Alberta Premier Danielle Smith. In 2022, Smith denounced a federal mandate that will require all new cars sold after 2035 to be “zero emission” electric (EVs) vehicles and promised that Albertans will always have the choice to buy gasoline-powered cars.

Since taking office in 2015, Trudeau has continued to push a radical environmental agenda similar to the agendas being pushed the World Economic Forum’s “Great Reset” and the United Nations’ “Sustainable Development Goals.”

The reduction and eventual elimination of the use of so-called “fossil fuels” and a transition to unreliable “green” energy has also been pushed by the World Economic Forum (WEF) – the globalist group behind the socialist “Great Reset” agenda – an organization in which Trudeau and some of his cabinet are involved.

The Trudeau government’s electric vehicle plan comes despite the fact Canada has the third largest oil reserves in the world. Electric cars cost thousands more to make and buy, are largely considered unsuitable for Canada’s climate as they offer poor range and long charging times during cold winters and have batteries that take tremendous resources to make and are difficult to recycle.

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Business

Ottawa’s capital gains tax hike—final nail in ‘business investment’ coffin

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From the Fraser Institute

By Tegan Hill and Jake Fuss

From 2014 to 2022, inflation-adjusted total business investment (in plants, machinery, equipment and new technologies but excluding residential construction) in Canada declined by C$34 billion. During the same period, after adjusting for inflation, business investment declined by a total of $3,748 per worker

According to the recent federal budget, the Trudeau government plans to increase the inclusion rate from 50 per cent to 66.7 per cent on capital gains over $250,000 for individuals and on all capital gains realized by corporations and trusts. Unfortunately, this tax hike will be the final nail in the coffin for business investment in Canada, which likely means even harder economic times ahead.

Canada already faces a business investment crisis. From 2014 to 2022, inflation-adjusted total business investment (in plants, machinery, equipment and new technologies but excluding residential construction) in Canada declined by C$34 billion. During the same period, after adjusting for inflation, business investment declined by a total of $3,748 per worker—from $20,264 per worker in 2014 to $16,515 per worker in 2022.

While business investment has declined in Canada since 2014, in other countries, including the United States, it’s continued to grow. This isn’t a post-COVID problem—this is a Canada problem.

And Canadians should be worried. Businesses investment is key for strong economic growth and higher living standards because when businesses invest in physical and intellectual capital they equip workers with the tools and technology (e.g. machinery, computer programs, artificial intelligence) to produce more and provide higher quality goods and services, which fuels innovation and higher productivity. And as firms become more efficient and increase profits, they’re able to pay higher wages, which is why business investment remains a key factor for higher incomes and living standards.

The Trudeau government’s policies—increased regulation, particularly in the energy and mining sectors (which makes Canada a relatively unattractive place to do business), higher and uncompetitive taxes, and massive federal deficits (which imply future tax increases)—have damaged business investment.

Unsurprisingly, weak business investment has correlated with a weak economy. In the fourth quarter of 2023, real economic growth per person ($58,111) officially fell below 2014 levels ($58,162). In other words, Canadian living standards have completely stagnated. In fact, over the last decade economic growth per person has been the weakest on record since the 1930s.

Instead of helping fix the problem, the Trudeau government’s capital gains tax hike will further damage Canada’s economy by reducing the return on investment and encouraging an exodus of capital from the country. Indeed, capital gains taxes are among the most economically-damaging forms of taxation because they reduce the incentive to invest.

Once again, the Trudeau government has enacted a policy that will deter business investment, which Canada desperately needs for strong economic growth. The key takeaway for Canadians? Barring a change in policy, you can expect harder times ahead.

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