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Trudeau gov’t appears to back down on ‘digital services tax’ plans

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7 minute read

From LifeSiteNews

By Anthony Murdoch

‘feds need to stop dreaming up new taxes and new ways to make life more expensive.’

A plan by Prime Minister Justin Trudeau’s federal government to tax the advertising revenues of non-Canadian tech giants and other companies – which could spark a major trade war and make accessing the internet more expensive – seems to be off the table, at least for now.  

According to Canadian law professor Dr. Michael Geist, the Trudeau government seems to have “quietly backed down from its plans to implement a new Digital Services Tax (DST) as of January 2024.” 

In its 2019 election party platform, the Trudeau Liberals had promised to impose a three percent so-called DST, which could have brought in an estimated $7.2 billion, but at the expense of tech giants that all provide services to Canadians.  

In October, the head of the Canadian Taxpayers Federation (CTF) Franco Terrazzano said the “feds need to stop dreaming up new taxes and new ways to make life more expensive.” 

“Prime Minister Justin Trudeau should be doing everything he can to make life more affordable, but this Digital Services Tax will mean higher prices for ordinary Canadians,” he noted.  

The CTF noted that when France introduced a similar tax against tech giants such as Google, Facebook, Amazon, and other large online sites, it caused everything to get more expensive in the country.  

“An economic impact assessment of the French digital services tax shows that about 55% of the total tax burden will be passed on to consumers, 40% to online vendors and only 5% borne by the digital companies targeted by the new tax,” noted the CTF. 

Geist said that after months of the Trudeau government insisting a DST would be incoming next year, the government has removed that “implementation deadline” in their recent Fall Economic Statement. 

When news first broke of the tax in late 2019, many U.S. Senators and Representatives signed letters asking the Canadian government to delay implementing a DST, which they warned would have created disastrous consequences.  

Canadian Finance Minister Chrystia Freeland had been insisting up until recently a DST would be coming. In the summer 2023, she said, “Two years ago, we agreed to pause the implementation of our own Digital Services Tax (DST), in order to give time and space for negotiations on Pillar One. But we were clear that Canada would need to move forward with our own DST as of January 1, 2024, if the treaty to implement Pillar One has not come into force.” 

Even earlier this month Freeland seemed “cautiously optimistic” a deal could be reached between Canada and the U.S. for a DST. 

Geist noted that it now “appears that the optimism came from a decision to simply remove the January 1, 2024 start date,” to implement the tax and move it down the road to a later date. 

As noted in the Trudeau Liberals Fall Economic Statement, “In order to protect Canada’s national economic interest, the government intends to move ahead with its longstanding plan for legislation to enact a Digital Services Tax in Canada and ensure that businesses pay their fair share of taxes and that Canada is not at a disadvantage relative to other countries.” 

“Forthcoming legislation would allow the government to determine the entry-into-force date of the new Digital Services Tax, as Canada continues conversations with its international partners.” 

Geist noted that the delay in implementing a DST means that it “buys time for a potential international agreement on implementing a global approach to the issue and should relieve some of the external pressure.” 

Putting in place DST now would create ‘significant risks’ 

As it stands now, the Trudeau Liberals have already pushed forth bills that will regulate the internet. This includes the federal government’s censorship Bill C-11, the Online Streaming Act, which has been blasted by many as allowing the government more control of free speech through potential new draconian web regulations. 

Another Trudeau internet censorship law, Bill C-18, the Online News Act, became law in June 2023 despite warnings that it will end free speech in Canada. This new law forces social media companies to pay Canadian legacy media for news content shared on their platforms. 

Geist observed that while implanting a DST on tech giants might be more “preferable to the cross-industry subsidy model found in Bills C-11 and C-18,” pushing forth with a DST now would bring disastrous consequences and could spark a trade war.  

“Moving ahead now would have created significant risks, including the prospect of billions in retaliatory tariffs. Led by Bill C-18 and the digital services tax, the government talked tough for months about regulating big tech,” wrote Geist. 

“But with the (Fall Economic Statement) FES providing a massive bailout to compensate for the harm caused by the Online News Act and the decision to hold off on implementing the DST, it would appear that the tough talk has been replaced by much-needed realism on what amounted to deeply flawed policies and a weak political hand.” 

Geist has continually warned that the Trudeau government’s meddling with big tech by trying to regulate the internet will not stop at “Web Giants,” but will lead to the government going after “news sites” and other “online” video sites as well. 

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Some Of The Wackiest Things Featured In Rand Paul’s New Report Alleging $1,639,135,969,608 In Gov’t Waste

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From the Daily Caller News Foundation

By Ireland Owens

Republican Kentucky Sen. Rand Paul released the latest edition of his annual “Festivus” report Tuesday detailing over $1 trillion in alleged wasteful spending in the U.S. government throughout 2025.

The newly released report found an estimated $1,639,135,969,608 total in government waste over the past yearPaul, a prominent fiscal hawk who serves as the chairman of the Senate Homeland Security and Governmental Affairs Committee, said in a statement that “no matter how much taxpayer money Washington burns through, politicians can’t help but demand more.”

“Fiscal responsibility may not be the most crowded road, but it’s one I’ve walked year after year — and this holiday season will be no different,” Paul continued. “So, before we get to the Feats of Strength, it’s time for my Airing of (Spending) Grievances.”

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The 2025 “Festivus” report highlighted a spate of instances of wasteful spending from the federal government, including the Department of Health and Human Services (HHS) spent $1.5 million on an “innovative multilevel strategy” to reduce drug use in “Latinx” communities through celebrity influencer campaigns, and also dished out $1.9 million on a “hybrid mobile phone family intervention” aiming to reduce childhood obesity among Latino families living in Los Angeles County.

The report also mentions that HHS spent more than $40 million on influencers to promote getting vaccinated against COVID-19 for racial and ethnic minority groups.

The State Department doled out $244,252 to Stand for Peace in Islamabad to produce a television cartoon series that teaches children in Pakistan how to combat climate change and also spent $1.5 million to promote American films, television shows and video games abroad, according to the report.

The Department of Veterans Affairs (VA) spent more than $1,079,360 teaching teenage ferrets to binge drink alcohol this year, according to Paul’s report.

The report found that the National Science Foundation (NSF) shelled out $497,200 on a “Video Game Challenge” for kids. The NSF and other federal agencies also paid $14,643,280 to make monkeys play a video game in the style of the “Price Is Right,” the report states.

Paul’s 2024 “Festivus” report similarly featured several instances of wasteful federal government spending, such as a Las Vegas pickleball complex and a cabaret show on ice.

The Trump administration has been attempting to uproot wasteful government spending and reduce the federal workforce this year. The administration’s cuts have shrunk the federal workforce to the smallest level in more than a decade, according to recent economic data.

Festivus is a humorous holiday observed annually on Dec. 23, dating back to a popular 1997 episode of the sitcom “Seinfeld.” Observance of the holiday notably includes an “airing of grievances,” per the “Seinfeld” episode of its origin.

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Alberta

A Christmas wish list for health-care reform

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From the Fraser Institute

By Nadeem Esmail and Mackenzie Moir

It’s an exciting time in Canadian health-care policy. But even the slew of new reforms in Alberta only go part of the way to using all the policy tools employed by high performing universal health-care systems.

For 2026, for the sake of Canadian patients, let’s hope Alberta stays the path on changes to how hospitals are paid and allowing some private purchases of health care, and that other provinces start to catch up.

While Alberta’s new reforms were welcome news this year, it’s clear Canada’s health-care system continued to struggle. Canadians were reminded by our annual comparison of health care systems that they pay for one of the developed world’s most expensive universal health-care systems, yet have some of the fewest physicians and hospital beds, while waiting in some of the longest queues.

And speaking of queues, wait times across Canada for non-emergency care reached the second-highest level ever measured at 28.6 weeks from general practitioner referral to actual treatment. That’s more than triple the wait of the early 1990s despite decades of government promises and spending commitments. Other work found that at least 23,746 patients died while waiting for care, and nearly 1.3 million Canadians left our overcrowded emergency rooms without being treated.

At least one province has shown a genuine willingness to do something about these problems.

The Smith government in Alberta announced early in the year that it would move towards paying hospitals per-patient treated as opposed to a fixed annual budget, a policy approach that Quebec has been working on for years. Albertans will also soon be able purchase, at least in a limited way, some diagnostic and surgical services for themselves, which is again already possible in Quebec. Alberta has also gone a step further by allowing physicians to work in both public and private settings.

While controversial in Canada, these approaches simply mirror what is being done in all of the developed world’s top-performing universal health-care systems. Australia, the Netherlands, Germany and Switzerland all pay their hospitals per patient treated, and allow patients the opportunity to purchase care privately if they wish. They all also have better and faster universally accessible health care than Canada’s provinces provide, while spending a little more (Switzerland) or less (Australia, Germany, the Netherlands) than we do.

While these reforms are clearly a step in the right direction, there’s more to be done.

Even if we include Alberta’s reforms, these countries still do some very important things differently.

Critically, all of these countries expect patients to pay a small amount for their universally accessible services. The reasoning is straightforward: we all spend our own money more carefully than we spend someone else’s, and patients will make more informed decisions about when and where it’s best to access the health-care system when they have to pay a little out of pocket.

The evidence around this policy is clear—with appropriate safeguards to protect the very ill and exemptions for lower-income and other vulnerable populations, the demand for outpatient healthcare services falls, reducing delays and freeing up resources for others.

Charging patients even small amounts for care would of course violate the Canada Health Act, but it would also emulate the approach of 100 per cent of the developed world’s top-performing health-care systems. In this case, violating outdated federal policy means better universal health care for Canadians.

These top-performing countries also see the private sector and innovative entrepreneurs as partners in delivering universal health care. A relationship that is far different from the limited individual contracts some provinces have with private clinics and surgical centres to provide care in Canada. In these other countries, even full-service hospitals are operated by private providers. Importantly, partnering with innovative private providers, even hospitals, to deliver universal health care does not violate the Canada Health Act.

So, while Alberta has made strides this past year moving towards the well-established higher performance policy approach followed elsewhere, the Smith government remains at least a couple steps short of truly adopting a more Australian or European approach for health care. And other provinces have yet to even get to where Alberta will soon be.

Let’s hope in 2026 that Alberta keeps moving towards a truly world class universal health-care experience for patients, and that the other provinces catch up.

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