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Federal taxes hurting B.C. wineries and craft brewers

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From the Canadian Taxpayers Federation

By Carson Binda

Trudeau has a habit of saying his government is working to make life more affordable, but tax hikes do just the opposite.

Federal tax hikes are hitting a crucial industry in British Columbia at the worst possible time.

The alcohol industry across B.C. has had a tough couple months. Between forest fires, droughts and cold snaps, wine-growers and craft brewers will have a harder time turning a profit this year. And Prime Minister Justin Trudeau is about to make things even worse.

In April, Trudeau is hiking federal taxes on beer, wine and spirits by almost five per cent. Taxes already account for about half the price you pay for alcoholic beverages. That means every time you buy a bottle of wine or a six-pack of your favourite craft beer, you’re also buying one for the taxman.

To add insult to injury, the tax hike is automatic, meaning our elected MPs won’t vote on the increased taxes on wine and other alcoholic beverages.

Back in 2017, the Trudeau government introduced a tax escalator on alcoholic beverages. The escalator means the taxes on beer, wine, ciders and spirits goes up automatically every year, without a vote in Parliament.

Regardless of your views on alcohol, it’s wrong for the government to hike taxes without letting the democratic process weigh in.

Trudeau shouldn’t be jacking up taxes on a struggling industry, especially not without letting our elected representatives voice their concerns by actually voting on the hike.

Wine growing is an important industry in B.C., with more than 12,000 people across every region of B.C. employed. It creates more than $3.75 billion for the provincial economy. Almost 1.2 million tourists visit B.C. wineries every year. There are 341 separate wineries in our province alone, with hundreds more wineries across the country.

While taxes on B.C. VQA wines are less than the taxes on non-VQA wines, VQA wines only make up around 19 per cent of sales. Local non-VQA wines in B.C. are the most frequent type of wine sold in the province.

Craft beer is also a big driver of the local economy. There are more than 200 craft breweries in B.C. alone, which made almost $230 million in revenue in 2020. Around 4,500 people are employed by craft breweries in B.C. And more than 95 per cent of wineries, breweries, cideries and distillers in B.C. are small businesses.

A majority of the 1,100 craft breweries in Canada are in rural areas where they are important employers. It’s wrong for the small businesses in rural communities to be picking up the bill for big-spending politicians in Ottawa.

Small businesses selling alcoholic beverages are also going to be paying the tab for Trudeau’s tax binge. Think about all the pubs, bars and restaurants that make ends meet by selling beverages to thirsty British Columbians.

Instead of hitting the gems of our provincial economy with automatic tax hikes, we should be supporting those small mom-and-pop brewers and pubs to ensure they can keep employing thousands of British Columbians and pumping billions into our economy.

Credit where credit is due: Some federal politicians like MP Tracy Gray in Kelowna have been vocal in their opposition to the escalator tax. But that’s falling on deaf ears in the prime minister’s office.

Trudeau has a habit of saying his government is working to make life more affordable, but tax hikes do just the opposite.

If Trudeau really wanted to help the little guy get ahead, he wouldn’t be hiking taxes on small businesses and families.

Carson Binda is the B.C. Director for the Canadian Taxpayers Federation

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Former Trump Advisor Says US Must Stop UN ‘Net Zero’ Climate Tax On American Ships

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From the Daily Caller News Foundation

By Stephen Moore

Later this week the United Nations will hold a vote on a multi-billion climate-change tax targeted squarely at American industry. Without quick and decisive action by the White House,  this U.N. tax on fossil fuels will become international law.

This resolution before the International Maritime Organization will impose a carbon tax on cargo and cruise ships that carry $20 trillion of merchandise over international waters. Roughly 80% of the bulkage of world trade is transported by ship.

The resolution is intended to advance the very “net zero” carbon emissions standard that has knee-capped the European economies for years and that American voters have rejected.

This tax is clearly an unnecessary restraint on world trade, thus making all citizens of the world poorer.

It is also an international tax that would be applied to American vessels and, as such, is a dangerous precedent-setting assault on U.S. sovereignty. Since when are American businesses subject to international taxes imposed by the United Nations?

The U.S maritime industry believes the global tax would cost American shippers more than $100 billion over the next seven years if enacted.

Worst of all, if the resolution passes, it will require the retirement of older ships and enable a multi-billion-dollar wealth transfer to China, which has come to dominate shipbuilding in recent years. China STRONGLY supports the tax scheme, even though, ironically, no nation has emitted more pollutants into the atmosphere than they have. Yet WE are getting socked with a tax that indirectly pays for THEIR pollution.

Despite the fact that we pay a disproportionate share of the tax, the U.S. has almost no say on how the revenues are spent. This is the ultimate form of taxation without representation.

Even if the United States chooses not to implement the tax on domestic shipping, it will still be enforced by foreign ports of origin or destination as well as by flag states. As a result, American importers and exporters will be required to pay the tax regardless of domestic policy decisions.

Secretary of State Marco Rubio, Secretary of Energy Chris Wright, and Secretary of Transportation Sean Duffy have jointly stated that America “will not accept any international environmental agreement that unduly or unfairly burdens the United States or our businesses.” They call the financial impact on the U.S. of this global carbon tax “disastrous, with some estimates forecasting global shipping costs increasing as much as 10% or more.”

The U.S. maritime industry complains that although American vessels carry only about 12% of the globally shipped merchandise, U.S. flag vessels would bear almost 20% of this tax. No wonder China and Europe are for it. The EU nations get 17 yes votes to swamp the one no vote out of Washington.

Unfortunately, right now without White House pressure, we could lose this vote because of defections by our allies.

To prevent this tax, the White House should announce a set of retaliation measures. This could include a dollar-for-dollar reduction in U.S. payments to NATO, the U.N., IMF and World Bank.

At a time when financial markets are dealing with trade disputes, the last thing the world — least of all the United States — needs is a United Nations excise tax on trade.

Stephen Moore is co-founder of Unleash Prosperity and a former Trump senior economic advisor.

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“Nation Building,” Liberal Style: We’re Fixing a Sewer, You’re Welcome, Canada

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The Opposition with Dan Knight

Dan Knight's avatar Dan Knight

Ottawa held a full-blown press conference to announce they unclogged a pipe in Toronto and called it a generational housing strategy.

You probably didn’t hear much about it unless you were watching Canadian state media but this morning, the Liberal government held a press conference in Toronto. It was billed as a “generational investment” in housing. That’s the phrase they used. In reality, it was a sewer project.

Gregor Robertson, the former mayor of Vancouver and now the federal minister of housing and infrastructure, stood beside Toronto Mayor Olivia Chow and a cluster of Liberal MPs to announce that Ottawa is spending $283 million to upgrade the Black Creek trunk sewer line. That’s a pipe. A very old pipe. And according to Robertson, that investment will “unlock” the construction of up to 63,000 new homes in the Downsview area.

If that sounds suspiciously like taking credit for doing your job, maintaining the basic infrastructure cities rely on, that’s because it is. No one has ever accused the Liberals of missing an opportunity to repackage civic maintenance as a national moral crusade. The sewer line is 65 years old. It overflows during storms. It’s been a known problem for decades. Fixing it is not bold housing policy. It’s plumbing.

But the political optics are irresistible. The Trudeau Liberals, now under the leadership of Mark Carney are desperate for a win on housing. Their record is catastrophic. Home prices have doubled. Rents have soared. Entire generations of Canadians have been priced out of ownership and locked into permanent renter status. And the architects of that disaster are now flying around the country handing out ribbon-cutting ceremonies and calling it reform.

Today’s announcement also included the unveiling of the first project under a brand-new federal housing agency, Build Canada Homes. Never heard of it? That’s because it didn’t exist until a few weeks ago. And who’s running it? None other than Ana Bailão a Liberal operative and former Toronto city councillor who spent years helping make the city unaffordable in the first place. Now she’s being rewarded with a cushy federal appointment, tasked with building modular housing and handing out contracts on public land.

And what exactly is Build Canada Homes building? Today, they’re launching 540 homes. Not 63,000… 540. Factory-built units that will be delivered at some undefined point in the future. That’s the big federal breakthrough. A housing crisis affecting millions of Canadians, and Ottawa’s answer is five hundred and forty modular homes in Downsview.

This is the pattern every time. The government breaks something, calls it a crisis, and then demands credit for fixing a fraction of it with your money. The numbers are staggering. According to the Parliamentary Budget Office, Canada needs 3.1 million more homes by 2030 to restore affordability. That means building over 430,000 units per year. Right now, we’re building maybe half that. The backlog gets worse every year. But today, we’re supposed to celebrate because they’re unclogging a sewer and firing up a couple prefab builds on federal land.

No one in the press asked the obvious question: why aren’t private builders constructing the 300,000 units that Toronto has already zoned and approved? Because they can’t. The financing doesn’t work. The cost of materials is too high. Interest rates have crippled developers. And cities like Toronto still impose hundreds of millions of dollars in fees, development charges, and bureaucratic red tape. That’s the real bottleneck. Not the sewer. And here’s what they definitely won’t say out loud: Canada’s housing disaster is not just about supply. It’s about demand, turbocharged by one of the fastest immigration intakes in the Western world. The Bank of Canada has warned repeatedly that immigration targets, set without any link to housing capacity — have blown demand wide open and put relentless upward pressure on rents and home prices.

Mayor Chow admitted it herself, sort of. She said the city has thousands of units ready to build but no takers. And instead of confronting the root causes, monetary policy, taxes, regulatory insanity, the government announces a pilot project and tells you to be grateful. That’s how disconnected they are from reality. They’ve regulated housing out of reach and now they’re posing for photos on a construction site, pretending to be the solution.

And just in case there was any lingering doubt about how deep this failure runs, Statistics Canada released its latest building permit numbers this morning and the trend is exactly what you’d expect in a country where the government makes building homes all but impossible.

The total value of building permits dropped again in August down $139 million to $11.6 billion. Residential permits alone fell 2.4%, driven by steep declines in Ontario and Alberta, the very provinces with the most acute housing needs. Single-family permits fell off a cliff — down more than 10% year-over-year. That’s not a slowdown. That’s a stall.

Meanwhile, British Columbia and Quebec where government intervention is particularly heavy barely managed to offset the damage. The number of new dwellings authorized actually shrank month over month. And this is happening in the middle of a so-called national housing push.

StatsCan didn’t sugarcoat it. They didn’t blame foreign investors or greedy landlords or some phantom market force. They just showed the raw data: Permits are falling. Housing starts are lagging. Builders are retreating.

So let’s just pause here and appreciate the sheer absurdity of what we witnessed. A parade of officials, flanked by branded podiums and tax-funded media handlers, standing in front of a construction site to announce, with straight faces, that they are upgrading a sewer line. And for this, we are told we are “building Canada strong.” Really? That’s the pitch? Fixing basic municipal plumbing is now a nation-building moment?

No! Let’s be clear, you’re not building Canada strong. You’re doing your job. A sewer upgrade in Toronto is not some heroic act of visionary leadership. It’s literally maintenance. It’s what functioning governments are supposed to do, quietly, competently, without a six-camera press choreography and a round of applause from party MPs.

But in Liberal Carney Canada the bar has been lowered so dramatically that simply clearing a permit backlog and patching old infrastructure is treated like a moon landing. They break the system, congratulate themselves for patching one pipe, and expect gratitude.

If you want praise for fixing aging civic infrastructure, something cities used to handle without a national press event, then that tells us everything. It tells us the Liberal government has become so hollow, so addicted to performance politics, that maintenance is now treated as achievement. That’s how far we’ve fallen in just ten years.

They didn’t rebuild a nation. They didn’t launch a housing renaissance. They unclogged a sewer, and are now demanded a standing ovation. And that, in a single image, is modern Liberal Canada: the total collapse of standards, repackaged as progress and sold back to you at full price.

Canadians don’t need more press conferences. They need homes, dignity, and a government that works without constant applause. And if unclogging a pipe is what passes for leadership now — then God help the country.

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