Business
Reality check—Canadians are not getting an income tax cut
From the Fraser Institute
By Jason Clemens and Jake Fuss
On the campaign trail, both the Conservatives and the Liberals promised to cut personal income taxes, and with the Liberal Party winning a minority, one assumes the Carney government will fulfill the promise and reduce the bottom personal income tax rate from 15 to 14 per cent. However, in reality, due to the dismal state of federal finances, neither party actually offered a tax reduction but rather simply a deferral of taxes to the future.
The key variable in any government’s fiscal policy is spending. It represents the amount of resources the government plans to marshal for its various programs and transfers. At any given point in time, a country has only so many resources (i.e. raw materials, workers, equipment, etc.) and a government’s spending plan represents the share of those resources it intends to use for its purposes rather than leaving them in the hands of the people, families and businesses that actually created them.
Taxes are simply the way governments finance that spending. But it’s not the only way. Governments in many western countries, particularly Canada and the United States, have increasingly relied on borrowing to finance current spending. Instead of raising taxes today to pay for increased spending, governments defer those taxes into the future by borrowing and increasing government debt.
According to the Trudeau government’s last economic update, Ottawa expected to collect $516.2 billion this year (2025/26) but planned to spend $558.3 billion on programs and debt interest payments. The difference—$42.2 billion—represents how much the federal government plans to borrow.
According to the Liberal Party’s election platform, the promised tax cut to the lowest personal income tax rate will reduce revenues by a projected $4.2 billion this year. If the Liberal platform also reduced spending by at least the same amount, the tax cut would represent a real reduction in the amount of resources used by government and thus a genuine reduction in the tax bill for Canadians.
But the Liberal platform doesn’t reduce spending. In fact, it proposes marked increases ($29.4 billion this year) on already record levels of spending by the previous government. And the planned deficit this year is expected to increase from a projected $42.2 billion under Trudeau to $62.3 billion under Carney.
Put differently, Prime Minister Carney plans to use more resources in government for his new spending and investments compared to Trudeau. However, Carney plans to collect slightly less taxes now by shifting the burden to more borrowing, which simply means more debt and higher debt interest payments, and ultimately higher taxes in the future.
These decisions are not also without immediate costs. Under Trudeau, total federal debt increased from $1.1 trillion in 2014/15 (the year before he took office) to an expected $2.3 trillion this year. (Again, Carney plans to increase the amount of debt accumulated this year and at least the next three years.) Debt interest payments also increased from $24.2 billion the year before Trudeau took office to a projected $54.2 billion this year.
Carney’s plan, which includes higher debt levels, means those interest costs will increase. Interest payments represent resources extracted from Canadians that are not available for actual programs such as health care or genuine tax relief.
So while the new government may tell Canadians that its delivering tax relief, it’s not. It’s simply kicking the can down the road by financing higher spending through more borrowing. That means higher interest costs, higher debt and ultimately higher taxes in the future.
Billionaire Bill Gates — long one of the loudest voices warning of climate catastrophe — now says the world has bigger problems to worry about. In a 17-page memo released Tuesday, the Microsoft co-founder called for a “strategic pivot” away from the obsessive focus on reducing global temperatures, urging leaders instead to prioritize fighting poverty and eradicating disease in the developing world. “Climate change is a serious problem, but it’s not the end of humanity,” Gates wrote.
Gates, 70, argued that global leaders have lost perspective by treating climate change as an existential crisis while millions continue to suffer from preventable diseases like malaria. “If I had to choose between eradicating malaria and preventing a tenth of a degree of warming, I’d let the temperature go up 0.1 degree,” he told reporters ahead of next month’s U.N. climate conference in Brazil. “People don’t understand the suffering that exists today.”
For decades, Gates has positioned himself as a leading advocate for global climate initiatives, investing billions in green energy projects and warning of the dangers of rising emissions. Yet his latest comments mark a striking reversal — and a rare admission that the world’s climate panic may have gone too far. “If you think climate is not important, you won’t agree with the memo,” Gates told journalists. “If you think climate is the only cause and apocalyptic, you won’t agree with the memo. It’s a pragmatic view from someone trying to maximize the money and innovation that helps poor countries.”
The billionaire’s change in tone is sure to raise eyebrows ahead of the U.N. conference, where climate activists plan to push for new emissions targets and wealth transfers from developed nations. Critics have long accused Gates and other elites of hypocrisy for lecturing the public about fossil fuels while traveling the globe on private jets. Now, Gates himself appears to be distancing from the doomsday rhetoric he once helped spread, effectively admitting that humanity faces more immediate moral imperatives than the weather.
(AP Photo/Alex Brandon)
Stunning Climate Change pivot from Bill Gates. Poverty and disease should be top concern.
From LifeSiteNews
A briefing note showed Canadian aid has gone to ‘key foreign policy priorities in China, including human rights, gender equality, sustainable development, and climate change.’
A federal briefing note disclosed that well over $100 million has been provided to the Communist Chinese government in so-called “foreign aid” to promote “sustainable development” that includes woke ideology such as gender equality.
As reported by Blacklock’s Reporter, a recent briefing note titled Assistance to China from May for the Minister of International Development showed $109 million has gone to “key foreign policy priorities in China, including human rights, gender equality, sustainable development, and climate change” since 2015 and $645 million since 2003.
The briefing note asked directly if funding was “going to the Government of China.”
In reply, the briefing note stated, “Canada has not provided direct bilateral assistance to Chinese state authorities since 2013, though it continues to provide small amounts of funding to international partners and non-state partners on the ground.”
Former Prime Minister Justin Trudeau came to power in 2015 and increased relations with the Communist Chinese regime. This trend under the Liberal Party government has continued with Prime Minister Mark Carney.
During a 2025 federal election campaign debate, Conservative Party leader Pierre Poilievre called out Carney for his ties to Communist China.
Conservative MP Andrew Scheer has consistently called out any money at all going to China, saying, “I don’t believe Canadian taxpayers should be sending any money to China.”
“We’re talking about a Communist dictatorial government that abuses human rights, quashes freedoms, violates rights of its citizens, and has a very aggressive foreign policy throughout the region,” he noted.
Scheer added that he has been calling on the Carney Liberals to “stand up for themselves, stand up for Canadians, stop being bullied and pushed around on the world stage, especially by China.”
Most of the money in foreign aid was spent through globalist-backed agencies such as the World Bank and the United Nations Development Program. Some 39 percent of the money was said to have gone straight to Chinese recipients, but no projects were itemized.
Other countries have received millions of dollars in foreign aid, with $2.1 billion going to Ukraine, $195 million to Ethiopia, $172 million to Haiti, and $151 million to the West Bank and Gaza last year.
Foreign aid to all nations totaled $12.3 billion.
LifeSiteNews recently reported that the Canadian Liberal government gave millions in aid to Chinese universities.
China has been accused of direct election meddling in Canada, as reported by LifeSiteNews.
LifeSiteNews also reported that a new exposé by investigative journalist Sam Cooper has claimed there is compelling evidence that Carney and Trudeau are/were strongly influenced by an “elite network” of foreign actors, including those with ties to China and the World Economic Forum.
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