Business
Taxpayers call on Trudeau to scrap Digital Services Tax as US threatens trade action
From the Canadian Taxpayers Federation
Author: Jay Goldberg
“Trudeau is determined to make Canadians’ lives more expensive and he’s willing to risk a trade war with the United States to do it”
The Canadian Taxpayers Federation is calling on the Trudeau government to scrap its Digital Services Tax in the wake of warnings from the United States Trade Representative that the United States will “do what’s necessary” to respond to the Trudeau government’s new tax.
“Canadian consumers know that Trudeau’s Digital Services Tax is nothing more than a tax grab, plain and simple,” said CTF Ontario Director Jay Goldberg. “With providers virtually certain to pass along increased costs to consumers, Prime Minister Justin Trudeau is sticking Canadians with higher taxes and risking the possibility of a trade conflict with the United States.”
The DST targets large foreign companies operating online marketplaces, social media platforms and earning revenue from online advertising, such as Amazon, Facebook, Google and VRBO. It is a three per cent tax on all online revenue these companies generate in Canada.
The Trudeau government pushed its new DST through Parliament last month and plans to apply it retroactively to as far back as 2022.
Since the Trudeau government first explored the idea of imposing a Digital Services Tax three years ago, the USTR has repeatedly warned the United States would retaliate.
“Should Canada adopt a DST, USTR would examine all options, including under our trade agreements and domestic statutes,” said the USTR in 2022.
USTR Katherine Tai is now warning that the U.S. is looking at “all available tools” to respond to Trudeau’s new tax.
“Trudeau is determined to make Canadians’ lives more expensive and he’s willing to risk a trade war with the United States to do it,” said Goldberg. “It’s clear the Digital Services Tax must go.”
The Canadian Taxpayers Federation is calling on the federal, Ontario and municipal governments to publicly reject subsidizing a new arena for the Ottawa Senators.
“Politicians need to stand up for taxpayers and tell the Ottawa Senators’ lobbyists NO,” said Noah Jarvis, CTF Ontario Director. “Prime Minister Mark Carney, Ontario Premier Doug Ford and Ottawa Mayor Mark Sutcliffe all need to publicly reject giving taxpayers’ money to the owners of the Ottawa Senators.”
The Ottawa Citizen recently reported that “the Ottawa Senators have a team off the ice lobbying federal and provincial governments for funds to help pay the hefty price tag for a new arena.”
The Ottawa Senators said they don’t intend on asking the city of Ottawa for taxpayer dollars. However, the Ottawa Citizen reported that “it’s believed Senators’ owner Michael Andlauer would like a similar structure to the [Calgary] arena deal.” The Calgary arena deal included municipal subsidies.
As of December 2024, the Ottawa Senators were worth just under $1.2 billion, according to Forbes.
Meanwhile, both the federal and Ontario governments are deep in debt. The federal debt will reach $1.35 trillion by the end of the year. The Ontario government is $459 billion in debt. The city of Ottawa is proposing a 3.75 per cent property tax increase in 2026.
“Governments are up to their eyeballs in debt and taxpayers shouldn’t be forced to fund a brand-new fancy arena for a professional sports team,” said Franco Terrazzano, CTF Federal Director. “If the owners of the Ottawa Senators want to build a fancy new arena, then they should be forced to fund it with ticket sales not tax hikes.”
From the Fraser Institute
By Jake Fuss and Grady Munro
The number of Canadians donating to charity—as a percentage of all tax filers—is at the lowest point in 20 years, finds a new study published by the
Fraser Institute, an independent, non-partisan Canadian public policy think-tank.
“The holiday season is a time to reflect on charitable giving, and the data shows Canadians are consistently less charitable every year, which means charities face greater challenges to secure resources to help those in need,” said Jake Fuss, director of Fiscal Studies at the Fraser Institute and co-author of Generosity in Canada: The 2025 Generosity Index.
The study finds that the percentage of Canadian tax filers donating to charity during the 2023 tax year—just 16.8 per cent—is the lowest proportion of Canadians donating since at least 2003. Canadians’ generosity peaked at 25.4 per cent of tax-filers donating in 2004, before declining in subsequent years.
Nationally, the total amount donated to charity by Canadian tax filers has also fallen from 0.55 per cent of income in 2013 to 0.52 per cent of income in 2023.
The study finds that Manitoba had the highest percentage of tax filers that donated to charity among the provinces (18.7 per cent) during the 2023 tax year while New Brunswick had the lowest (14.4 per cent).
Likewise, Manitoba also donated the highest percentage of its aggregate income to charity among the provinces (0.71 per cent) while Quebec and Newfoundland and Labrador donated the lowest (both 0.27 per cent).
“A smaller proportion of Canadians are donating to registered charities than what we saw in previous decades, and those who are donating are donating less,” said Fuss.
“This decline in generosity in Canada undoubtedly limits the ability of Canadian charities to improve the quality of life in their communities and beyond,” said Grady Munro, policy analyst and co-author.
Generosity of Canadian provinces and territories
Ranking (2025) % of tax filers who claiming donations Average of all charitable donations % of aggregate income donated
Manitoba 18.7 $2,855 0.71
Ontario 17.2 $2,816 0.58
Quebec 17.1 $1,194 0.27
Alberta 17.0 $3,622 0.68
Prince Edward Island 16.6 $1,936 0.45
Saskatchewan 16.4 $2,597 0.52
British Columbia 15.9 $3,299 0.61
Nova Scotia 15.3 $1,893 0.40
Newfoundland and Labrador 15.0 $1,333 0.27
New Brunswick 14.4 $2,076 0.44
Yukon 14.1 $2,180 0.27
Northwest Territories 10.2 $2,540 0.20
Nunavut 5.1 $2,884 0.15
NOTE: Table based on 2023 tax year, the most recent year of comparable data in Canada
Generosity in Canada: The 2025 Generosity Index
- Manitoba had the highest percentage of tax filers that donated to charity among the provinces (18.7%) during the 2023 tax year while New Brunswick had the lowest (14.4%).
- Manitoba also donated the highest percentage of its aggregate income to charity among the provinces (0.71%) while Quebec and Newfoundland and Labrador donated the lowest (both 0.27%).
- Nationally, the percentage of Canadian tax filers donating to charity has fallen over the last decade from 21.9% in 2013 to 16.8% in 2023.
- The percentage of aggregate income donated to charity by Canadian tax filers has also decreased from 0.55% in 2013 to 0.52% in 2023.
- This decline in generosity in Canada undoubtedly limits the ability of Canadian charities to improve the quality of life in their communities and beyond.
Jake Fuss
Director, Fiscal Studies, Fraser Institute
Grady Munro
Policy Analyst, Fraser Institute
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