Fraser Institute
Trudeau’s legacy includes larger tax burden for middle-class Canadians

From the Fraser Institute
By Jake Fuss and Grady Munro
On Monday outside Rideau Cottage in Ottawa, after Prime Minister Justin Trudeau told Canadians he plans to resign, a reporter asked Trudeau to name his greatest accomplishments. In response, among other things, Trudeau said his government “reduced” taxes for the “middle class.” But this claim doesn’t withstand scrutiny.
After taking office in 2015, the Trudeau government reduced the second-lowest personal income tax rate from 22.0 per cent to 20.5 per cent—a change that was explicitly sold by Trudeau as a tax cut for the middle class. However, this change ultimately didn’t lower the amount of taxes paid by middle-class Canadians. Why?
Because the government simultaneously eliminated several tax credits—which are intended to reduce the amount of income taxes owed—including income splitting, the children’s fitness credit, children’s arts tax credit, and public transit tax credits. By eliminating these tax credits, the government helped simplify the tax system, which is a good thing, but it also raised the amount families pay in income taxes.
Consequently, most middle-income families now pay higher taxes. Specifically, a 2022 study published by the Fraser Institute found that nearly nine in 10 (86 per cent) middle-income families (earning household incomes between $84,625 and $118,007) experienced an increase in their federal personal income taxes as a result of the Trudeau government’s tax changes.
The study also found that other income groups experienced tax increases. Nearly three-quarters (73 per cent) of families with a household income between $54,495 and $84,624 paid higher taxes as a result of the tax changes. And across all income groups, 61 per cent of Canadian families faced higher personal income taxes than they did in 2015.
The Trudeau government also introduced a new top tax bracket on income over $200,000—which raised the top federal personal income tax rate from 29 per cent to 33 per cent—and other tax changes that increased the tax burden on Canadians including the recent capital gains tax hike. Prior to this hike, investors who sold capital assets (stocks, second homes, cottages, etc.) paid taxes on 50 per cent of the gain. Last year, the Trudeau government increased that share to 66.7 per cent for individual capital gains above $250,000 and all capital gains for corporations and trusts.
According to the Trudeau government, this change will only impact the “wealthiest” Canadians, but in fact it will impact many middle-class Canadians. For example, in 2018, half of all taxpayers who claimed more than $250,000 of capital gains in a year earned less than $117,592 in normal income. These include Canadians with modest annual incomes who own businesses, second homes or stocks, and who may choose to sell those assets once or infrequently in their lifetimes (when they retire, for example). These Canadians will feel the real-world effects of Trudeau’s capital gains tax hike.
While reflecting on his tenure, Prime Minister Trudeau said he was proud that his government reduced taxes for middle-class Canadians. In reality, taxes for middle-class families have increased since he took office. That’s a major part of his legacy as prime minister.
Business
Pay increase for Governor General since 2019 is more than average Canadian annual salary

From the Canadian Taxpayers Federation
By Ryan Thorpe
The salary for Canada’s Governor General has skyrocketed by just over $75,000 since 2019. Meanwhile the average annual salary among all full-time workers in Canada was roughly $70,000 in 2024
Governor General Mary Simon pocketed a $15,200 pay raise this year, bumping her annual salary for 2025 up to $378,000.
This marks Simon’s fourth pay raise since she was appointed governor general in 2021, meaning she now makes $49,300 more than when she took on the role.
“Can anyone in government explain how Canadians are getting more value from the governor general, because her taxpayer-funded salary just increased by more than $1,200 a month,” said Franco Terrazzano, CTF Federal Director. “The automatic-pay-raise culture in Ottawa is ridiculous and politicians and bureaucrats shouldn’t expect more money every year just because they’re on the taxpayer payroll.”
The Canadian Taxpayers Federation confirmed Simon’s current salary and the details of her latest pay raise with the Privy Council Office.
“For 2025, the Governor General’s salary, which is determined in accordance with the provisions of the Governor General’s Act … is $378,000,” a PCO spokesperson told the CTF.
The federal government hiked the governor general’s annual salary by $75,200 (or 25 per cent) since 2019.
Meanwhile, the average annual salary among all full-time workers in Canada was roughly $70,000 in 2024, according to Statistics Canada data.
“Canadians can’t afford to keep paying more for a largely symbolic role,” Terrazzano said. “The governor general already takes a huge taxpayer-funded salary and she should show leadership by refusing this year’s pay hike.”
On top of the $378,000 annual salary, the governor general receives a range of lucrative perks, including a taxpayer-funded mansion, a platinum pension, a clothing budget, paid dry cleaning services and lavish travel expenses.
Former governors general are eligible for a full pension, of about $150,000 a year, regardless of how long they serve in office.
Even though Simon’s predecessor, Julie Payette, served in the role for a little more than three years, she will receive an estimated $4.8 million if she collects her pension till the age of 90.
The CTF estimates that Canada’s five former governors general will receive more than $18 million if they collect their pensions until the age of 90.
Even after leaving office, former governors general can also expense taxpayers for up to $206,000 annually for the rest of their lives, continuing up to six months after their deaths.
In May 2023, the National Post reported the governor general can expense up to $130,000 in clothing during their five-year mandates, with a $60,000 cap during the first year.
Simon and Payette combined to expense $88,000 in clothing since 2017, including a velvet dress with silk lining, designer gloves, suits, shoes and scarves, among other items.
Rideau Hall expensed $117,000 in dry-cleaning services since 2018, despite having in-house staff responsible for laundry – an average dry cleaning tab of more than $1,800 per month.
In 2022, Simon’s first full year on the job, she spent $2.7 million on travel, according to government records obtained by the CTF.
Simon’s travel has sparked multiple controversies, including a $100,000 bill for in-flight catering during a weeklong trip to the Middle East, and her $71,000 bill at IceLimo Luxury Travel during a four-day trip to Iceland.
“Platinum pay and perks for the governor general should have been reined in a long time ago,” Terrazzano said. “The government should stop rubberstamping pay raises for the governor general every year, end the expense account for former governors general, reform the platinum pension, scrap the clothing allowance and cut all international travel except for meetings with the monarchy.”
Table: Annual Governor General Salary, per PCO data
Year |
GG Salary |
2019 |
$302,800 |
2020 |
$310,100 |
2021 |
$328,700 |
2022 |
$342,100 |
2023 |
$351,600 |
2024 |
$362,800 |
2025 |
$378,000 |
Alberta
Alberta government must restrain spending in upcoming budget to avoid red ink

From the Fraser Institute
By Tegan Hill and Milagros Palacios
Whether due to U.S. tariffs or lower-than-expected oil prices, the Smith government has repeatedly warned Albertans that despite a $4.6 billion projected budget surplus in 2024/25, Alberta could soon be in the red. To help avoid this fate, the Smith government must restrain spending in its upcoming 2025 budget.
These are not simply numbers on a page; budget deficits have real consequences for Albertans. For one, deficits fuel debt accumulation. And just as Albertans must pay interest on their own mortgages or car loans, taxpayers must pay interest on government debt. Each dollar spent paying interest is a dollar diverted from programs such as health care and education, or potential tax relief. This fiscal year, provincial government debt interest costs will reach a projected $650 per Albertan.
And while many risk factors are out of the government’s direct control, the government can control its own spending.
In its 2023 budget, the Smith government committed to keep the rate of spending growth to below the rate of inflation and population growth. This was an important step forward after decades of successive governments substantially increasing spending during good times—when resource revenues (including oil and gas royalties) were relatively high (as they are today)—but failing to rein in spending when resource revenue inevitably declined.
But here’s the problem. Even if the Smith government sticks to this commitment, it may still fall into deficit. Why? Because this government has spent significantly more than it originally planned in its 2022 mid-year plan (the Smith government’s first fiscal update). In other words, the government’s “restraint” is starting from a significantly higher base level of spending. For example, this fiscal year it will spend $8.2 billion more than it originally planned in its 2022 mid-year plan. And inflation and population growth only account for $3.1 billion of this additional spending. In other words, $5.1 billion of this new spending is unrelated to offsetting higher prices or Alberta’s growing population.
Because of this higher spending and reliance on volatile resource revenue, red ink looms.
Indeed, while the Smith government projects budget surpluses over the next three fiscal years, fuelled by historically high resource revenue, if resource revenue was at its average of the last two decades, this year’s $4.6 billion projected budget surplus would turn into a $5.8 billion deficit. And projected budget surpluses in 2025/26 and 2026/27 would flip to budget deficits. To be clear, this is not a far-fetched scenario—resource revenue plummeted by nearly 70 per cent in 2015/16.
In contrast, if resource revenue fell to its average (again, based on the last two decades) but the Smith government held to its original 2022 spending plan, Alberta would still have a balanced budget in 2026/27.
Bottom line; had the Smith government not substantially increased spending over the last two years, Alberta’s spending levels today would align with more stable ongoing levels of revenue, which would put Alberta on more stable fiscal footing in the years to come.
Premier Smith has warned Albertans a budget deficit may be on the way. To mitigate the risk of red ink moving forward, the Smith government should show real spending restraint in its 2025 budget.
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