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Economy

Government services faltering despite Ottawa’s tax hikes

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4 minute read

From the Fraser Institute

By Matthew Lau

Compare this growth of almost 50 per cent to the growth rate of private-sector employment—from 2015 to 2023, combined growth for the private sector and self-employment was about 11 per cent.

According to a study published by the Fraser Institute, 44.6 per cent of the average family’s income will be consumed by taxes of all kinds in 2024. Thus June 13—which is 44.6 per cent of the way through the year—was “Tax Freedom Day.” In other words, on average, the work done and income earned from January 1 to June 12 is consumed by government. This tax bill, most Canadians believe, is too high, but alas a tax-happy federal government is unlikely to provide relief.

Indeed, the Trudeau government recently made another effort to push Tax Freedom Day further back into the year with its increase to capital gains taxes, adding to its long record of tax increases since coming to office in 2015. The list of tax hikes includes a new top income tax bracket in 2016, the carbon tax first imposed in 2019 and increased every year since, five consecutive annual Canada Pension Plan tax hikes from 2020 to 2024, special taxation of financial institutions imposed in 2022, continued threats of special taxation of grocery stores, and announced plans for a tax on share buybacks.

With such enthusiasm for tax hikes, it cannot be a surprise that since the Trudeau government took office in 2015, the number of employees at the Canada Revenue Agency increased from around 40,000 to almost 60,000 by 2023. Compare this growth of almost 50 per cent to the growth rate of private-sector employment—from 2015 to 2023, combined growth for the private sector and self-employment was about 11 per cent.

But alas, all these new taxes and government growth have not yielded positive results. From the third quarter of 2015 to the first quarter of 2024, growth in real GDP per-person (a common indicator of living standards) was less than 1 per cent cumulatively versus nearly 16 per cent in the United States. The productivity improvements that deliver sustainable economic growth rely on business investment, but that has badly stalled in Canada, too. Since the third quarter of 2015, real business investment in machinery, equipment and non-residential structures is down about 19 per cent on a per-person basis.

Nor have Canadians received improved government services as a result of higher taxes.

Health access is getting worse, with wait times for medical care continuing to increase. And even the Liberals have effectively admitted their national child-care program, which they began implementing in 2021, has created widespread shortages.

Similarly, on two core federal government functions—public safety and national defence—even as Canadians pay new and higher taxes, outcomes are dismal. Crime is rising and Canada’s military readiness is “dangerously inefficient.” In fact, at the end of last year the commander of the Royal Canadian Navy said it “faces some very serious challenges right now that could mean we fail to meet our force posture and readiness commitments in 2024 and beyond” and that “the air force and the army are facing similar challenges.”

And Canada’s passport offices continue to be in a state of disarray and the federal government has missed its own deadline for allowing Canadians to renew passports online.

Polling data show Canadians believe they pay too much tax. No one should be surprised. The Trudeau government’s new and higher taxes have contributed significantly to the country’s stagnating economy and declining business confidence, and have been accompanied by deteriorating government services across the board. Raising taxes won’t make things any better. Cutting taxes would.

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Daily Caller

UN Chief Rages Against Dying Of Climate Alarm Light

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From the Daily Caller News Foundation

By David Blackmon

The light of the global climate alarm movement has faded throughout 2025, as even narrative-pushing luminaries like Bill Gates have begun admitting. But that doesn’t mean the bitter clingers to the net-zero by 2050 dogma will go away quietly. No one serves more ably as the poster child of this resistance to reality than U.N. chief Antonio Guterres, who is preparing to host the UN’s annual climate conference, COP30, in Brazil on Nov. 10.

In a speech on Monday, Guterres echoed poet Dylan Thomas’s advice to aging men and women in his famed poem, “Do not go gentle into that good night:”

Do not go gentle into that good night,
Old age should burn and rave at close of day;
Rage, rage against the dying of the light.

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Though wise men at their end know dark is right,
Because their words had forked no lightning they
Do not go gentle into that good night.

Seeing that his own words have “forked no lightning,” Guterres raged, raged against the dying of the climate alarm light.

“Governments must arrive at the upcoming COP30 meeting in Brazil with concrete plans to slash their own emissions over the next decade while also delivering climate justice to those on the front lines of a crisis they did little to cause,” Guterres demanded, adding, “Just look at Jamaica.”

Yes, because, as everyone must assuredly know, the Earth has never produced major hurricanes in the past, so it must be the all-powerful climate change bogeyman that produced this major storm at the end of an unusually slow Atlantic hurricane season.

Actually, Guterres’ order to all national governments to arrive in Belem, Brazil outfitted with aspirational plans to meet the net-zero illusion, which everyone knows can and will never be met, helps explain why President Donald Trump will not be sending an official U.S. delegation. Trump has repeatedly made clear – most recently during his September speech before the U.N. General Assembly – that he views the entire climate change agenda as a huge scam. Why waste taxpayer money in pursuit of a fantasy when he’s had so much success pursuing a more productive agenda via direct negotiations with national leaders around the world?

The Green New Scam would have killed America if President Trump had not been elected to implement his commonsense energy agenda…focused on utilizing the liquid gold under our feet to strengthen our grid stability and drive down costs for American families and businesses,” Taylor Rogers, a White House spokeswoman, said in a statement to the GuardianPresident Trump will not jeopardize our country’s economic and national security to pursue vague climate goals that are killing other countries,” she added.

The Guardian claims that Rogers’s use of the word “scam” refers to the Green New Deal policies pursued by Joe Biden. But that’s only part of it: The President views the entire net-zero project as a global scam designed to support a variety of wealth redistribution schemes and give momentum to the increasingly authoritarian forms of government we currently see cracking down in formerly free democracies like the U.K., Canada, Germany, France, Australia and other western developed nations.

Trump’s focused efforts on reversing vast swaths of Biden’s destructive agenda is undoing 16 years of command-and-control regulatory schemes implemented by the federal government. The resulting elimination of Inflation Reduction Act subsidies is already slowing the growth of the electric vehicles industry and impacting the rise of wind and solar generation as well.

But the impacts are international, too, as developing nations across the world shift direction to be able to do business with the world’s most powerful economy and developed nations in Europe and elsewhere grudgingly strive to remain competitive. Gates provided a clear wake-up call highlighting this global trend with his sudden departure from climate alarmist orthodoxy and its dogmatic narratives with his shift in rhetoric and planned investments laid out in last week’s long blog post.

Guterres, as the titular leader of the climate movement’s center of globalist messaging, sees his perch under assault and responded with a rhetorical effort to reassert his authority. We can expect the secretary general to keep raging as his influence wanes and he is replaced by someone whose own words might fork some lightning.

David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.

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Business

The Liberal budget is a massive FAILURE: Former Liberal Cabinet Member Dan McTeague

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Prime Minister Mark Carney tabled his government’s long-overdue budget yesterday and took the same approach as his predecessor – spend, spend, spend.

Canada’s deficit is now a staggering $78 BILLION. To make matters worse, Carney doubled down on the industrial carbon tax.

Dan McTeague explains in his latest video.

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