Economy
Taxpayers Federation: Canada’s largest city overpaying for construction $350 million a year

From the Canadian Taxpayers Federation
Author: Jay Goldberg
Favouring unions costs taxpayers dearly
They say less is more, especially when it comes to budgeting. Apparently, Toronto Mayor Olivia Chow never got the memo.
Canada’s largest city keeps overpaying on construction projects, to the tune of $350 million a year. The reason, in many cases, is that only union-affiliated firms need apply.
With modest construction contracting reform, Toronto could save a bundle and see property taxes frozen for 2025.
Over the past two years, Toronto politicians voted to increase property taxes by a whopping 18 per cent. Last year’s increase alone was 9.5 per cent.
Because of these massive property tax increases, many families were pushed to the brink.
Property tax bills for most Torontonians soared by hundreds of dollars over the past two years.
Yet so much of this pain could have been avoided with a little common-sense policymaking.
Would you refuse to even consider quotes from a non-unionized company? Or would you get quotes from everyone and then make your decision?
To nearly everyone on the planet other than Toronto’s zany politicians, the choice is obvious.
But when you’re a Toronto politician spending other people’s money, apparently open competition to find the best deal isn’t a priority.
Right now, Toronto uses a closed-tendering approach to award contracts for some of the city’s most expensive construction projects. That means only a handful of companies associated with a small group of unions can bid on those jobs.
Cardus, a non-partisan thinktank, released a report last year projecting Toronto was poised to award $1.7 billion in construction projects through a closed tendering process in 2023. Because Toronto only allows a small number of unionized construction companies to bid on those jobs, the cost goes up.
In fact, Cardus estimated Toronto taxpayers were set to overpay on construction projects in 2023 to the tune of $350 million due to a lack of competition.
Closed tendering used to be the norm in Ontario. Every city across the province overpaid on construction projects to cater to big unions.
That all changed in 2019, when the Ford government passed legislation allowing municipalities to open up the construction contracting process to real competition.
Sadly, Toronto has thus far chosen not to take advantage of the Ford government’s legislative reforms to save a boatload of cash.
But nearby cities sure have.
Consider the example of Hamilton.
Hamilton was one of the first cities in Ontario to take advantage of the Ford government’s reforms. Cardus estimates Hamilton is saving 21 per cent on its construction projects because the city opened up its contracting process. This single reform did a great deal to improve the city’s bottom line.
Yet Toronto politicians appear stuck in the past. During last year’s mayoral by-election, only two candidates, Councillor Brad Bradford and Anthony Furey, pledged to follow Hamilton in reforming construction contracts.
There has been no indication from Chow, who won that by-election, that this common-sense reform is even on the table.
Last year, Chow and council increased property taxes by 9.5 per cent, the highest property tax hike in Toronto’s history.
Had Chow implemented construction reform and saved the $350 million Cardus pointed to, last year’s property tax increase could have been wiped out entirely.
Think about that. Chow had a choice: save money through competitive bidding or hammer taxpayers with a huge tax hike.
The mayor picked the tax hike.
To break the cycle of massive property tax hikes, it’s high time Toronto looked at construction contract reform.
Taxpayers shouldn’t put up with politicians overpaying on construction contracts to the tune of hundreds of millions of dollars a year, only to see those same politicians turn around and impose record property tax hikes.
This isn’t just a problem restricted to Toronto: taxpayers from British Columbia to Quebec themselves face similar anti-competitive policies at the provincial level.
It’s time for politicians to put taxpayers, not unions, first.
Chow should implement common-sense construction contracting reforms to head off a massive property tax increase in 2025.
Business
Canada may escape the worst as Trump declares America’s economic independence with Liberation Day tariffs

MxM News
Quick Hit:
On Wednesday, President Trump declared a national emergency to implement a sweeping 10% baseline tariff on all imported goods, calling it a “Declaration of Economic Independence.” Trump said the tariffs would revitalize the domestic economy, declaring that, “April 2, 2025, will forever be remembered as the day American industry was reborn.”
Key Details:
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The baseline 10% tariff will take effect Saturday, while targeted “reciprocal” tariffs—20% on the EU, 24% on Japan, and 17% on Israel—begin April 9th. Trump also imposed 25% tariffs on most Canadian and Mexican goods, as well as on all foreign-made cars and auto parts, effective early Thursday.
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Trump justified the policy by citing foreign trade restrictions and long-standing deficits. He pointed to policies in Australia, the EU, Japan, and South Korea as examples of protectionist barriers that unfairly harm American workers and industries.
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The White House estimates the 10% tariff could generate $200 billion in revenue over the next decade. Officials say the added funds would help reduce the federal deficit while giving the U.S. stronger leverage in negotiations with countries running large trade surpluses.
Diving Deeper:
President Trump on Wednesday unveiled a broad new tariff policy affecting every imported product into the United States, marking what he described as the beginning of a new economic era. Declaring a national emergency from the White House Rose Garden, the president announced a new 10% baseline tariff on all imports, alongside steeper country-specific tariffs targeting longstanding trade imbalances.
“This is our Declaration of Economic Independence,” Trump said. “Factories will come roaring back into our country — and you see it happening already.”
The tariffs, which take effect Saturday, represent a substantial increase from the pre-Trump average U.S. tariff rate and are part of what the administration is calling “Liberation Day” for American industry. Reciprocal tariffs kick in April 9th, with the administration detailing specific rates—20% for the European Union, 24% for Japan, and 17% for Israel—based on calculations tied to bilateral trade deficits.
“From 1789 to 1913, we were a tariff-backed nation,” Trump said. “The United States was proportionately the wealthiest it has ever been.” He criticized the establishment of the income tax in 1913 and blamed the 1929 economic collapse on a departure from tariff-based policies.
To underscore the move’s long-anticipated nature, Trump noted he had been warning about unfair trade for decades. “If you look at my old speeches, where I was young and very handsome… I’d be talking about how we were being ripped off by these countries,” he quipped.
The president also used the moment to renew his push for broader economic reforms, urging Congress to eliminate federal taxes on tips, overtime pay, and Social Security benefits. He also proposed allowing Americans to write off interest on domestic auto loans.
Critics of the plan warned it could raise prices for consumers, noting inflation has already risen 22% under the Biden administration. However, Trump pointed to low inflation during his first term—when he imposed more targeted tariffs—as proof his strategy can work without sparking runaway costs.
White House officials reportedly described the new baseline rate as a guardrail against countries attempting to game the system. One official explained the methodology behind the reciprocal tariffs: “The trade deficit that we have with any given country is the sum of all trade practices, the sum of all cheating,” adding that the tariffs are “half of what they could be” because “the president is lenient and he wants to be kind to the world.”
In addition to Wednesday’s sweeping changes, Trump’s administration recently imposed a 25% tariff on Chinese goods tied to fentanyl smuggling and another 25% on steel and aluminum imports—revoking previous carve-outs for countries like Brazil and South Korea. Future tariffs on semiconductors, pharmaceuticals, and raw materials such as copper and lumber are reportedly under consideration.
Trump closed his remarks with a message to foreign leaders: “To all of the foreign presidents, prime ministers, kings, queens, ambassadors… I say, ‘Terminate your own tariffs, drop your barriers.’” He declared April 2nd “the day America’s destiny was reclaimed” and promised, “This will indeed be the golden age of America.”
2025 Federal Election
Three cheers for Poilievre’s alcohol tax cut

By Franco Terrazzano
The Canadian Taxpayers Federation applauds Conservative Party Leader Pierre Poilievre’s commitment to end and reverse the alcohol escalator tax.
“Poilievre just promised major alcohol tax cuts and taxpayers will cheers to that,” said Franco Terrazzano, CTF Federal Director. “Poilievre’s tax cut will save Canadians money every time they have a cold one with a buddy or enjoy a glass of Pinot with their better half and it will give Canadians brewers, distillers and wineries a fighting chance against tariffs.”
Today, federal alcohol taxes increased by two per cent, costing taxpayers about $40 million this year, according to Beer Canada.
Poilievre announced a Conservative government “will axe the escalator tax on wine, beer and spirits back to 2017 levels, ending the automatic annual tax increases.”
The alcohol escalator tax has automatically increased excise taxes on beer, wine and spirits every year, without a vote in Parliament, since 2017. The alcohol escalator tax has cost taxpayers more than $900 million since being imposed, according to Beer Canada.
Taxes from multiple levels of government account for about half of the price of alcohol.
Meanwhile, tariffs are hitting the industry hard. Brewers have described the tariffs as “Armageddon for craft brewing.”
“Automatic tax hikes are undemocratic, uncompetitive and unaffordable and they need to stop,” Terrazzano said. “If politicians think Canadians aren’t paying enough tax, they should at least have the spine to vote on the tax increase.
“Poilievre is right to end the escalator tax and all party leaders should commit to making life more affordable for Canadian consumers and businesses by ending the undemocratic alcohol tax hikes.”
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