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Trudeau gov’t set to introduce another internet regulation bill this week

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5 minute read

From LifeSiteNews

By Anthony Murdoch

While the Trudeau government claims its forthcoming ‘Online Harms’ bill is being created to protect kids, Conservative Party of Canada head Pierre Poilievre said that the federal government is just looking for clever ways to enact internet censorship laws.

Prime Minister Justin Trudeau’s Liberal government is introducing its “online harms” legislation this week, spurring fears that this may mean the revival of parts of a lapsed bill from 2021 which looked to target free speech by banning certain legal internet content. 

The new bill, by Liberal Justice Minister Arif Virani, was posted on the House of Commons notice paper for February 26, 2024, and will soon be read in Parliament. 

The Online Harms Act will modify existing laws, amending the Criminal Code as well as the Canadian Human Rights Act, in what the Trudeau Liberals claim will target certain cases of internet content removal, notably those involving child sexual abuse and pornography.  

The new bill will also create an ombudsperson who will be charged with dealing with public complaints regarding online content, as well as put forth a regulatory function that will be charged with monitoring internet platform behaviors.  

While the Trudeau government claims the bill is being created to protect kids, Conservative Party of Canada head Pierre Poilievre said that the federal government is looking for clever ways to enact internet censorship laws.  

During a February 21 press conference, Poilievre said that Trudeau is looking to, in effect, criminalize speech he does not like. 

“What does Justin Trudeau mean when he says the word ‘hate speech?’ He means speech he hates,” said Poilievre. 

Virani had many times last year hinted that a new Online Harms Act bill would be forthcoming in 2024.  

Of important note is that the new Online Harms Act looks to amend Canada’s Human Rights Act, to put back in place a hate speech provision, specifically, Section 13 of the Act, which the previous Conservative government under Stephen Harper had repealed in 2013.  

It was feared that if passed, it would target bloggers and social media users for speaking their minds.  

Bill C-36 included text to amend Canada’s Criminal Code and Human Rights Act to define “hatred” as “the emotion that involves detestation or vilification and that is stronger than dislike or disdain (haine).”  

If passed, the bill would have theoretically allow a tribunal to judge anyone who has a complaint of online “hate” leveled against them, even if he has not committed a crime. If found guilty, the person would have been in violation of the new law and could have faced fines of up to $70,000 as well as house arrest.  

Two other Trudeau bills dealing with freedom as it relates to the internet have become law, the first being  Bill C-11, or the Online Streaming Act, which mandates that Canada’s broadcast regulator the Canadian Radio-television and Telecommunications Commission (CRTC) oversee regulating online content on platforms such as YouTube and Netflix to ensure that such platforms are promoting content in accordance with a variety of its guidelines.  

Trudeau’s other internet censorship law, the Online News Act, was passed by the Senate in June of last year.    

The Online News Act  mandated that Big Tech companies pay to publish Canadian content on their platforms. As a result, Meta, the parent company of Facebook and Instagram, has blocked all access to news content in Canada.

Critics of Trudeau’s recent laws, such as tech mogul Elon Musk, have said it shows that “Trudeau is trying to crush free speech in Canada.”

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Federal government’s ‘fudget budget’ relies on fanciful assumptions of productivity growth

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From the Fraser Institute

By Niels Veldhuis and Jake Fuss

Labour productivity isn’t growing, it’s declining. And stretching the analysis over the Trudeau government’s time in office (2015 to 2023, omitting 2020 due to COVID), labour productivity has declined by an average of 0.8 per cent. How can the Trudeau government, then, base the entirety of its budget plan on strong labour productivity growth?

As the federal budget swells to a staggering half a trillion dollars in annual spending—yes, you read that correctly, a whopping $538 billion this year or roughly $13,233 per Canadian—and stretches over 430 pages, it’s become a formidable task for the media to dissect and evaluate. While it’s easy to spot individual initiatives (e.g. the economically damaging capital gains tax increase) and offer commentary, the sheer scale and complexity of the budget make it hard to properly evaluate. Not surprisingly, most post-budget analysts missed a critically important assumption that underlies every number in the budget—the Liberals’ assumption of productivity growth.

Indeed, Canada is suffering a productivity growth crisis. “Canada has seen no productivity growth in recent years,” said Carolyn Rogers, senior deputy governor at the Bank of Canada, in a recent speech. “You’ve seen those signs that say, ‘In emergency, break glass.’ Well, it’s time to break the glass.”

The media widely covered this stark warning, which should have served as a wake-up call, urging the Trudeau government to take immediate action. At the very least, this budget’s ability—or more accurately, inability—to increase productivity growth should have been a core focus of every budget analysis.

Of course, the word “productivity” puts most people, except die-hard economists, to sleep. Or worse, prompts the “You just want us to work harder?” questions. As Rogers noted though, “Increasing productivity means finding ways for people to create more value during the time they’re at work. This is a goal to aim for, not something to fear. When a company increases productivity, that means more revenue, which allows the company to pay higher wages to its workers.”

Clearly, labour productivity growth remains critical to our standard of living and, for governments, ultimately determines the economic growth levels on which they base their revenue assumptions. With $538 billion in spending planned for this year, the Trudeau government better hope it gets its forecasts right. Otherwise, the $39.8 billion deficit they expect this year could be significantly higher.

And here’s the rub. Buried deep in its 430-page budget is the Trudeau government’s assumption about labour productivity growth (page 385, to be exact). You see, the Liberals assume the economy will grow at an average of 1.8 per cent over the next five years (2024-2028) and predict that half that growth will come from the increase in the supply of labour (i.e. population growth) and half will come from labour productivity growth.

However, as the Bank of Canada has noted, labour productivity growth has been non-existent in Canada. The Bank uses data from Statistics Canada to highlight the country’s productivity, and as StatsCan puts it, “On average, over 2023, labour productivity of Canadian businesses fell 1.8 per cent, a third consecutive annual decline.”

In other words, labour productivity isn’t growing, it’s declining. And stretching the analysis over the Trudeau government’s time in office (2015 to 2023, omitting 2020 due to COVID), labour productivity has declined by an average of 0.8 per cent. How can the Trudeau government, then, base the entirety of its budget plan on strong labour productivity growth? It’s what we call a “fudget budget”—make up the numbers to make it work.

The Trudeau fudget budget notwithstanding, how can we increase productivity growth in Canada?

According to the Bank of Canada, “When you compare Canada’s recent productivity record with that of other countries, what really sticks out is how much we lag on investment in machinery, equipment and, importantly, intellectual property.”

Put simply, to increase productivity we need businesses to increase investment. From 2014 to 2022, Canada’s inflation-adjusted business investment per worker (excluding residential construction) declined 18.5 per cent from $20,264 to $16,515. This is a concerning trend considering the vital role investment plays in improving economic output and living standards for Canadians.

But the budget actually hurts—not helps—Canada’s investment climate. By increasing taxes on capital gains, the government will deter investment in the country and encourage a greater outflow of capital. Moreover, the budget forecasts deficits for at least five years, which increases the likelihood of future tax hikes and creates more uncertainty for entrepreneurs, investors and businesses. Such an unpredictable business environment will make it harder to attract investment to Canada.

This year’s federal budget rests on fanciful assumptions about productivity growth while actively deterring the very investment Canada needs to increase living standards for Canadians. That’s a far cry from what any reasonable person would call a successful strategy.

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Alberta

Alberta government should create flat 8% personal and business income tax rate in Alberta

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From the Fraser Institute

By Tegan Hill

If the Smith government reversed the 2015 personal income tax rate increases and instituted a flat 8 per cent tax rate, it would help restore Alberta’s position as one of the lowest tax jurisdictions in North America

Over the past decade, Alberta has gone from one of the most competitive tax jurisdictions in North America to one of the least competitive. And while the Smith government has promised to create a new 8 per cent tax bracket on personal income below $60,000, it simply isn’t enough to restore Alberta’s tax competitiveness. Instead, the government should institute a flat 8 per cent personal and business income tax rate.

Back in 2014, Alberta had a single 10 per cent personal and business income tax rate. As a result, it had the lowest top combined (federal and provincial/state) personal income tax rate and business income tax rate in North America. This was a powerful advantage that made Alberta an attractive place to start a business, work and invest.

In 2015, however, the provincial NDP government replaced the single personal income tax rate of 10 percent with a five-bracket system including a top rate of 15 per cent, so today Alberta has the 10th-highest personal income tax rate in North America. The government also increased Alberta’s 10 per cent business income tax rate to 12 per cent (although in 2019 the Kenney government began reducing the rate to today’s 8 per cent).

If the Smith government reversed the 2015 personal income tax rate increases and instituted a flat 8 per cent tax rate, it would help restore Alberta’s position as one of the lowest tax jurisdictions in North America, all while saving Alberta taxpayers $1,573 (on average) annually.

And a truly integrated flat tax system would not only apply a uniform tax 8 per cent rate to all sources of income (including personal and business), it would eliminate tax credits, deductions and exemptions, which reduce the cost of investments in certain areas, increasing the relative cost of investment in others. As a result, resources may go to areas where they are not most productive, leading to a less efficient allocation of resources than if these tax incentives did not exist.

Put differently, tax incentives can artificially change the relative attractiveness of goods and services leading to sub-optimal allocation. A flat tax system would not only improve tax efficiency by reducing these tax-based economic distortions, it would also reduce administration costs (expenses incurred by governments due to tax collection and enforcement regulations) and compliance costs (expenses incurred by individuals and businesses to comply with tax regulations).

Finally, a flat tax system would also help avoid negative incentives that come with a progressive marginal tax system. Currently, Albertans are taxed at higher rates as their income increases, which can discourage additional work, savings and investment. A flat tax system would maintain “progressivity” as the proportion of taxes paid would still increase with income, but minimize the disincentive to work more and earn more (increasing savings and investment) because Albertans would face the same tax rate regardless of how their income increases. In sum, flat tax systems encourage stronger economic growth, higher tax revenues and a more robust economy.

To stimulate strong economic growth and leave more money in the pockets of Albertans, the Smith government should go beyond its current commitment to create a new tax bracket on income under $60,000 and institute a flat 8 per cent personal and business income tax rate.

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