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Ottawa’s GST break and rebate cheques amount to bad policy

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From the Fraser Institute

By Jake Fuss and Grady Munro

On Thursday, the House of Commons passed legislation (tabled by the Trudeau government) that would temporarily suspend the federal Goods and Services Tax (GST) on select items from December 14 to February 15 at an estimated cost of $1.6 billion, as part of the government’s “more money in your pocket” plan. The legislation now goes to the Senate for approval.

The government has delayed a separate proposal—to give Canadians $250 rebate cheques—in light of NDP demands to expand eligibility to include seniors. The original proposal would have sent cheques to an estimated 18.7 million Canadians (who worked in 2023 and earned $150,000 or less) at a cost of $4.7 billion. While aimed at all Canadians, this proposal is eerily similar to the recent move by Ontario’s Ford government, which plans to send $200 cheques to Ontarians. And again, it’s just bad policy.

Why?

Consider this. During the recent discussion about increasing Old Age Security payments by 10 per cent for seniors aged 65 to 74, former Bank of Canada governor David Dodge said, “The last thing that we need to be spending money on at this point in time is boosting consumption for relatively well-off people.” This critique also applies to the Trudeau government’s $250 rebate cheques, which would go to many well-off Canadians. Indeed, based on the government’s original proposal, a couple earning a combined household income of up to $300,000 could receive these cheques.

Moreover, because onetime payouts and temporary tax breaks don’t incentivize people to work and invest, they don’t help raise living standards. But permanent tax cuts, such as reducing personal income tax rates or lowering capital gains taxes, would provide a stronger incentive for Canadians to work more and make investments because they get to keep more of the money they earn. That would help drive economic growth, create jobs and provide more economic opportunities for workers across the income spectrum.

In fact, the Trudeau government’s plan may actually hurt economic growth in the long run. The government is expected to run budget deficits for the foreseeable future, and will likely borrow the billions needed to pay for the GST break and $250 cheques. In other words, this “relief” package will likely increase the federal deficit in 2024 and potentially 2025. By borrowing more money, the government will increase the tax burden on future generations of Canadians who ultimately must pay off today’s debt. And just as lower taxes improve economic incentives, this higher future tax burden will worsen incentives and likely stifle economic growth and reduce living standards.

Don’t be deceived. While it’s nice to get a cheque in the mail and have a couple months free of the GST for some items, the Trudeau government’s “more money in your pocket” plan is bad policy.

Jake Fuss

Director, Fiscal Studies, Fraser Institute

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Google Rejects Eurocrats’ Push For More Censorship

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From the Daily Caller News Foundation

By Ireland Owens

Google soundly rejected the European Union’s push for the platform to censor content Thursday, declaring that it would not implement so-called “fact-checks.”

The tech giant told the EU that it would not incorporate fact checks into its search results and YouTube videos, Axios first reported. Google’s President of Global Affairs Kent Walker wrote a letter to Renate Nikolay, deputy director-general for Communications Networks, Content and Technology at the European Commission, stating the fact-checking required by the law “simply isn’t appropriate or effective for our services.”

The European Commission’s Code of Practice on Disinformation, which was introduced in 2022, would require Google to incorporate fact-check results alongside its search results and YouTube videos and would also require it to incorporate fact-checking into its ranking systems and algorithms, Axios reported.

Axios’ report comes after Meta CEO Mark Zuckerberg announced on Jan. 7 that his company was ending its third-party fact-checking program in favor of implementing community notes. Meta’s announcement states that Meta’s platforms are “built to be places where people can express themselves freely.” Zuckerberg said that his company’s approach to content moderation often resulted in “censorship,” NPR reported.

Zuckerberg recently criticized the European Union’s data laws as “censoring” social media. The EU has rejected his claims as “misleading.”

Some people have criticized some major tech companies, claiming that they have censored conservative speech. Missouri Attorney General Andrew Bailey announced in October the launch of an investigation into Google for allegedly censoring conservatives.

Zuckerberg criticized Biden officials for pushing Meta to remove content that the Biden-Harris administration alleged to be disinformation during a recent appearance on the “Joe Rogan Experience” podcast.

President-elect Donald Trump has pledged to combat social media censorship.

In December, Trump announced that he was nominating Andrew Ferguson to lead the Federal Trade Commission, stating that Ferguson “has a proven record of standing up to Big Tech censorship, and protecting Freedom of Speech in our Great Country.”

Minnesota Republican Rep. Tom Emmer said in a post on X that Google’s decision was a “step in the right direction,” adding “Kudos to @Google.”

A source with knowledge of the matter confirmed to the Daily Caller News Foundation that the content of Google’s letter as reported by Axios was accurate.

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Conservatives demand Brookfield Asset Management reveal Mark Carney’s compensation

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From Conservative Party Communications

Canadians Deserve to Know How Much Carney is Being Paid

Today, Common Sense Conservative MPs Michelle Rempel Garner and Michael Barrett wrote this letter to Bruce Flatt, the CEO of Brookfield, calling on him to fully disclose Carbon Tax Carney’s compensation for his role as Chair of Brookfield Asset Management. The full text can be found below:

Dear Mr. Flatt, 

We are writing with regard to the Chair of Brookfield Asset Management, Mark Carney, who has acted in a senior leadership position for your company for some time now.

During the same time period, Mr. Carney has been advising Prime Minister Justin Trudeau’s government, and advocating for policies that have arguably wreaked havoc on Canada’s economy, like the carbon tax.

After nine years of this NDP-Liberal Government, which by their own very public admissions have relied on Mark Carney for advice, Canadians are witnessing the worst decline in living standards in forty years. The cost of housing has doubled, and record numbers of Canadians are having to depend on food banks to survive. 

Since August 2020, Mr. Carney has helped the NDP-Liberal Government hike its carbon tax on the backs of working Canadians, even endorsing it in his book, saying “One of the most important initiatives is carbon pricing…The Canadian federal carbon pricing framework is a model for others.” And since September 2024, when Trudeau appointed Carney as the Liberal Party’s Chair of the Leader’s Taskforce on Economic Growth, he would have had input into the most recent Fall Economic Statement which plunged Canada into a $62 billion deficit, blowing past the NDP-Liberal Government’s own fiscal guardrails.

And all the while Carney was advising the Liberals to continue carrying out their agenda of economic vandalism, he remained the Chair of Brookfield Asset Management, posing grave ethical questions that could have real-life consequences for millions of Canadians.

For instance, just a few days after his official appointment as Chair of the Leader’s Taskforce on Economic Growth, The Logic reported that Brookfield Asset Management has been actively lobbying the same federal Liberal government he’s been advising for $10 billion from the Canadian taxpayer. And Mr. Carney has strongly advocated for policies that would destroy Canada’s oil and gas sector, while at the same time your company invested in oil companies in Brazil and the United Arab Emirates. 

There are many other instances of questionable policy decisions the NDP-Liberal Government has made while Mark Carney was both advising them and acting as the Chair of Brookfield Asset Management – decisions that potentially could have resulted in Mr. Carney’s personal gain.

While we have written to the Federal Lobbying Commissioner to examine whether this arrangement broke any lobbying rules, that investigation may not shed public light on whether Mr. Carney was personally motivated by the structure of his compensation model with your company to advocate for certain policies in his senior advisory capacity with Justin Trudeau’s Liberal government.

Executive compensation for a Chair at a company the size of Brookfield can include salary, performance bonuses, stock options, lucrative expense accounts and more. Since Mr. Carney has a direct, senior, advisory line into Justin Trudeau’s government, and since your company has many interests which involve the type of policy on which Mr. Carney was advising the government, revealing the full scope of Mr. Carney’s compensation package to the public is essential to understanding what impact his access into the federal Liberal government had on his personal fortunes, if any.

For this reason, you must disclose Carney’s compensation structure with Brookfield Asset Management. This is especially important as Carney is now mounting a leadership campaign – with the help of members of Justin Trudeau’s inner circle – that could see him become the leader of the Liberal Party of Canada and the Prime Minister of this country, with even more power and more access.

It is vitally important for Canadians to know whether or not Mr. Carney’s compensation with Brookfield could increase if the Liberals implement his policy ideas. While food banks report over two million visits in a single month, Canadians have a right to know the fine details about the impact of insider access on their lives.

You must be transparent with Canadians on this matter. The stakes could not be higher.

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