GD's Political Animal

Saturday, June 28, 2025

Digital Services Tax derails trade talks with USA

The U.S. government abruptly broke off trade negotiations with Canada after the Carney government announced it was going forward with its Digital Services Tax, aimed at U.S. companies who operate online in Canada.

What is Canada's digital services tax and why is it infuriating Trump? | Financial Post | Yvonne Lau:

June 27, 2025 - "U.S. President Donald Trump abruptly cut off all trade negotiations with Canada on Friday, citing Ottawa’s Digital Services Tax (DST) for the decision. The tax, enacted last June, targets U.S. technology companies that operate in Canada but pay little tax here. Under the new tax regime, the first payments are set to be collected on Monday, June 30....

"Former Prime Minister Justin Trudeau’s government enacted Canada’s Digital Services Tax Act in June 2024.... The federal tax is applicable to large businesses — both foreign and domestic — that meet two specific criteria: a total global revenue of €750 million and up, and over $20 million of profits earned in Canada annually. The legislation levies a three per cent tax on digital services revenue over $20 million, and is retroactive to Jan. 1, 2022.... Taxable revenue includes those of online marketplaces, digital advertising, social media, and user data — which will primarily affect American Big Tech giants such as Amazon.com, Inc., Apple Inc., and Meta Platforms, Inc.

"Under the DST, companies were required to register with the Canada Revenue Agency (CRA) by Jan. 31, 2025 and are obligated to file their first DST returns on June 30, 2025. The CRA has said that more than 500 companies have already applied to register for DST purposes, and expects more than 100 companies to pay the tax. If applicable companies fail to register with the agency, they could be fined $20,000 per year. If they fail to file a DST return, Canada could dole out a penalty equal to five per cent of the unpaid tax for the year, plus one per cent of the unpaid tax for the year for each month, not exceeding 12 months, in which the return hasn’t been filed....

"The legislation however, has come under fire from business groups on both sides of the border, with critics warning that the rules could further inflame Canada-U.S. ties. The Canadian Chamber of Commerce has argued that the tax could increase costs for consumers and risks 'damaging our beneficial and lucrative trade relationship with the U.S.' The U.S. meanwhile, has long denounced Canada’s proposed rules, claiming that they unfairly discriminate against American firms. Last August, under the former Biden administration, the Office of the U.S. Trade Representative (USTR) launched dispute settlement consultations with Ottawa under the Canada-United States-Mexico Agreement over the DST....

"Tech giant Google LLC responded to Canada’s digital services tax rules by introducing an additional 2.5 per cent fee for ads shown in Canada starting in October 2024. Called the 'Canada DST Fee,' Google said the surcharges will “cover part of the costs of complying with DST legislation in Canada'....

"Around half of all European OECD countries have announced, proposed, or implemented a DST, according to the Tax Foundation Europe. The U.S. has met those proposals with threats of retaliatory tariffs. Some countries’ DST regimes could be on the chopping block. France’s Council of State, which advises the government on the preparation of bills and other matters, recently referred the country’s DST to the Constitutional Council for review, marking the first constitutional challenge to the DST since the legislation passed in 2019.

"For months, executives of U.S. tech giants have pressured American policymakers over Canada’s DST. Ontario Premier Doug Ford and Canadian business groups have also pressed the Carney government to abandon the DST. And while businesses and industry groups were holding out for a last-minute suspension of the DST, finance minister François-Philippe Champagne reconfirmed last Thursday that Canada is 'going ahead' with the tax. 'The (DST) is in force and it’s going to be applied,” he said.... 'Obviously, all of that is something that we’re considering as part of broader discussions that you may have,' Champagne said last week, suggesting that the DST could be renegotiated given the ongoing trade talks between Canada and the U.S."

What is Canada’s digital services tax, and who pays it? | CBC News: The National | June 27, 2025:

https://www.youtube.com/watch?v=4LeFMZV8_CM

Friday, June 27, 2025

U.S.-Iran war averted for now

War between the U.S. and Iran did not happen this week. However, it is not yet off the table.

President Trump: End the War Now! | Ron Paul Institute | Ron Paul:

June 23, 2025 - "Just a few weeks ago in this space I urged President Trump to accept a deal with Iran allowing it to continue pursuing civilian nuclear power while ensuring that it would not pursue nuclear weapons. Iran signaled it was ready to sign such a deal, yet suddenly Trump’s special envoy Steve Witkoff changed the US position to demand no civilian nuclear enrichment at all. The US Administration understood that Iran could not accept such a demand – that it had that right as a signatory of the Non-Proliferation Treaty – but Witkoff shifted the position anyway.

"Just days before the sixth round of negotiations were to take place, Israel blew up the whole process by launching a surprise attack on Iran and here we are just over a week later staring right into the face of World War III. Had the 'bait and switch' and subsequent Israeli attack not taken place, we likely would be seeing rapidly improving trade relations with Iran and throughout the region that would have enriched all parties....

"But the neocons and ... Benjamin Netanyahu, couldn’t stand the prospect of peace breaking out in the region so they dusted off their old lies about 'weapons of mass destruction' from the lead up to the Iraq war and soon enough the talks were sunk beneath a barrage of Israeli – and as of this past weekend American – bombs and missiles.

"President Trump’s decision to spend untold billions of dollars on what appears to be not much more than a 'symbolic' bombing of Iran’s already-vacated nuclear facilities was no doubt made with the intention of making himself look tough. Unfortunately for him, it has had the opposite effect. He has shown the world that he was no more able to resist the demands of the neocons and warmongers than his predecessors, and in abandoning his promises to be the president that ends wars instead of starting new ones he has also abandoned the most enthusiastic part of his base.

"What President Trump does not seem to understand is that true strength is not measured in how many missiles you can send to the 'Hitler of the month' as designated by the warmongers. True strength comes from standing up for your stated principles in the face of the enormous pressure that will inevitably be placed on you. Real strength is strength of character. It often comes from the ability to say 'no' when everyone around you demands that you give up a little bit of your principles for promises of riches or glory.

"As of this writing, we are standing on the precipice of a major war in the Middle East that threatens to bring in much larger actors such as Russia and China. The neocons, filled with unwarranted vainglory, welcome such a clash because they won’t be doing the fighting and dying. They will be the ones reaping the financial and other rewards. As usual.

"Unfortunately, President Trump has severely damaged his credibility by embroiling us in a war that is not our war. He would do well to immediately change course, search for off-ramps, make peace with Iran, and once and for all banish all neocons and warmongers from anywhere near his Administration. Otherwise 'MAGA' will go down in history as nothing but a cruel joke."

Sunday, June 22, 2025

Justice Centre report tallies up lockdown costs

A new report from the Justice Centre for Constitutional Freedoms examines the immediate and long-term negative impacts of Canada's Covid lockdowns, including physical, social, and economic harms.

New Report – Five years on: Tracing the costs of lockdowns } Justice Centre for Constitutional Freedoms (news release):

May 8, 2025 - "A new report from the Justice Centre for Constitutional Freedoms examines the immediate and long-term negative impacts of Covid lockdowns, including physical, social, and economic harms. It also underscores the lack of transparent, evidence-based analysis by governments to justify these measures....

"One of the most concerning findings is the sharp decline in Canadians’ mental health. In 2019, 67 percent of Canadians rated their mental health as 'very good or excellent.' By 2023, that figure had dropped to just 54 percent. Meanwhile, the number of Canadians reporting 'fair or poor' mental health nearly doubled — from 8 percent to 15 percent. This trend was seen across all age groups, but especially among young adults.

"Indeed, despite facing minimal risk from Covid, young Canadians suffered some of the most serious consequences of lockdown measures. Non-Covid deaths among Canadians under age 45 rose by 22 percent, driven by factors such as disease, addiction, delayed treatment, and suicide. Physical activity among youth dropped significantly during this period, while time spent on screens—such as cell phones, computers, and tablets—increased sharply. Up to 70 percent of children and teens reported experiencing anxiety, depression, or other serious mental health issues.

"A particularly alarming trend was the surge in opioid-related deaths. From 2020 to 2023, annual opioid overdose deaths increased by 108 percent. In 2023 alone, 8,606 Canadians died from opioid toxicity—more than double the pre-lockdown average. British Columbia, Alberta, and Ontario recorded the highest rates, with the vast majority of deaths involving fentanyl.

"During Covid, thousands of medical check-ups, diagnoses, and treatments were delayed or cancelled, resulting in a serious and ongoing backlog in Canada’s healthcare system.

"Wait times for medical treatments increased by 43 percent between 2019 and 2024, reaching a median of 30 weeks. MRI wait times rose by 55 percent. For certain cancers, including breast and prostate, surgery delays increased by as much as 34 percent. Since 2018, more than 74,000 Canadians have died while waiting for surgery or diagnostic care—over 15,000 of them in 2023–24 alone. The actual number is likely higher, due to poor provincial tracking and reporting....

"Lockdowns resulted in widespread job losses, particularly among low-wage workers, while the 'laptop class' remained largely unscathed. While many public sector jobs expanded during this time, Canadians in hospitality, retail, and service sectors faced prolonged unemployment. The expansion of public spending and government debt contributed to rising inflation, driving up the cost of food, housing, and other essentials.

"Crime rates also rose during the lockdown years. Homicides peaked in 2022 at 17 percent above trend, with 882 victims across Canada. Cybercrime nearly doubled, rising from 48,000 cases in 2019 to over 93,000 in 2023. Identity theft and fraud increased to 120 percent above trend in 2020, with similar levels in the following years. Particularly troubling was the rise in online child sexual exploitation, which reached 18,650 reported cases in 2023—a 173 percent increase from 2019.

"Benjamin Klassen, Education Coordinator at the Justice Centre, says the findings demand accountability.

This report calls for governments to take responsibility for the damage done during this period and ensure that future public health policies uphold the Charter rights and freedoms of all Canadians....
The Charter requires governments to ‘demonstrably’ justify any freedom-limiting policy. To date, no federal or provincial government in Canada has conducted the kind of comprehensive impact assessment required to justify the lockdowns....
The evidence is clear: the harms of lockdowns outweighed their benefits. Canadians deserve an honest and transparent evaluation of lockdown harms, so that these mistakes are never repeated."

Read study: https://www.jccf.ca/wp-content/uploads/2025/05/Five-years-on-Tracing-the-costs-of-lockdowns-1.pdf

Wednesday, June 18, 2025

America faces a Great Big Ugly Surveillance State

Trump's March executive order on "Eliminating Information Silos" seems designed to enable a Great Big Ugly Surveillance State.

Great Big Ugly Surveillance State | Ron Paul Institute | Ron Paul:

June 16, 2025 - "On March 20, President Trump signed an executive order 'Eliminating Information Silos.' The order directed heads of federal agencies to make sure officials designated by the president 'have full and prompt access to all unclassified agency records, data, software systems, and information technology systems.' The executive order did not attract much attention until it was more recently revealed that the administration was working with tech company Palantir to create a database containing all information collected by all federal agencies on all US citizens.

"A database consisting of all the information of American citizens collected by the various federal agencies such as the Social Security Administration, the Department of Health and Human Services, and the Pentagon would be a major step in creating a total surveillance state. This database could come in handy to future Dr. Faucis seeking to enforce mask and vaccine mandates.

"Those with access to this database could see personal health records, education records, and tax returns. They may even be able to see how many firearms individuals have purchased and if they were associated with any organizations the government had labeled 'extremist.'

"Despite the obvious threat to liberty the 'big ugly database' poses, some commentators and 'influencers' who would normally oppose, or at least be skeptical of, expansion of the surveillance state are supporting it because they believe it will be used to locate illegal immigrants. Some conservatives are supporting this proposal because it will help identify students who have publicly opposed the U.S. government’s support for Israel’s actions in Gaza. Ironically, many of those supporting government cracking down on 'anti-Israel' students came to fame (and in some cases fortune) as critics of 'wokeness' and cancel culture.

"The abandonment of liberty because fear drives people to trust government promises of safety is a phenomenon we have witnessed several times.... An obvious example is the way many former friends of freedom supported the PATRIOT Act and other infringements on liberty following the September 11, 2001 terrorist attacks. We also saw it during the covid hysteria when many embraced mask and vaccine mandates. Following the 2008 market meltdown, normally rather staunch opponents of government intervention supported the bailouts because they agreed with then-President George W. Bush who said he had 'abandoned free-market principles to save the free-market system.'

"Palantir, founded in 2003, has worked on helping government become more efficient at collecting and storing information about US citizens. The company, which was named after the seeing stones from J.R.R. Tolkien’s Lord of the Rings, is ... literally the creation of the surveillance state since one of its early investors was In-Q-Tel, a venture capital firm controlled by the CIA.

"Those discouraged by the surveillance state’s continued expansion under President Trump should be encouraged that more Americans than ever, including many who voted for President Trump, are seeing through the lie that the only way we can be safe is to surrender our liberty to politicians, bureaucrats, and crony capitalism. This should inspire us to redouble our efforts to spread the message of liberty."

Monday, June 16, 2025

For-profit hospitals flourish in Switzerland

Since 2012, the government of Switzerland has successfully integrated private for-profit hospitals into its system of universal health coverage.

Integrating Private Health Care into Canada’s Public System: What We Can Learn from Switzerland | Fraser Institute | Yanick Labrie:

June 12, 2025 - Executive Summary

"Access to timely care remains the Achilles’ heel of Canada’s health systems. To reduce wait times, some provinces have partnered with private clinics for publicly funded surgeries—a strategy that has proven effective, but continues to spark debate in Canada. This study explores how Switzerland successfully integrates private health care into a universal public system....

In Switzerland, universal coverage is delivered through a system of managed competition among 44 non-profit private insurers, while decentralized governance allows each of the 26 cantons to coordinate and oversee hospital services in ways that reflect local needs and priorities.
Nearly two-thirds of Swiss hospitals are for-profit institutions; they provide roughly half of all hospitalizations, births, and hospital beds across the country.
All hospitals are treated equally—regardless of legal status—and funded through the same activity-based model, implemented nationwide in 2012.
The reform led to a significant increase in the number of cases treated without a corresponding rise in expenditures per case, suggesting improved efficiency, better use of resources, and expanded access to hospital care.
The average length of hospital stay steadily decreased over time and now stands at 4.87 days in for-profit hospitals versus 5.53 days in public ones, indicating faster patient turnover and more streamlined care pathways.
Hospital-acquired infection rates are significantly lower in private hospitals (2.7%) than in public hospitals (6.2%), a key indicator of care quality.
Case-mix severity is as high or higher in private hospitals, countering the notion that they only take on simpler or less risky cases.
Patient satisfaction is slightly higher in private hospitals (4.28/5) than in public ones (4.17/5), reflecting strong user experience across multiple dimensions.

"Canada could benefit from regulated competition between public and private providers and activity-based funding, without breaching the Canada Health Act."

Read study: https://www.fraserinstitute.org/sites/default/files/2025-06/integrating-private-health-care-into-canadas-public-system.pdf

Friday, June 13, 2025

Court waives $38K in ArriveCan fines on Amish

A provincial court has waived more than $38,000 in outstanding fines on Ontario Amish who were convicted in absentia during the Covid pandemic, and faced loss of their homes and farms. for not using the controversial ArriveCan app.

TDF secures new victory for Amish: over $38,000 in fines waived | The Democracy Fund (news release):

June 05, 2025 - "The Democracy Fund (TDF) has achieved a significant legal victory for a group of Amish individuals convicted under the Quarantine Act for failure to complete the ArriveCan app. Following a May 22, 2025 court appearance, seven months of negotiations and numerous court appearances, TDF lawyers successfully had the group’s convictions set aside, resulting in over $38,000 in fines being waived.

"The Amish community, known for their traditional lifestyle and faith-based avoidance of modern technology, faced legal challenges after crossing the border at Niagara Falls. Their inability to use smartphones or interact with modern technology made it almost impossible to comply with the strict and continually-shifting COVID-19 regulations, particularly requirements involving the ArriveCan app. TDF took the position that the Amish did not receive proper notice of the offences, trial or conviction. They were convicted in absentia, and subsequently fined over $38,000. However, with the assistance of TDF, their cases were reopened, and through persistent advocacy, the convictions were ultimately set aside with fines being waived.

"For these Amish families, who depend on farming and community support, the prospect of paying such excessive fines was daunting. This resolution ensures that these legal entanglements do not threaten their livelihoods and properties.

"TDF Litigation Director Mark Joseph stated, 'This outcome is a testament to the importance of access to justice for all Canadians, regardless of their background or way of life. We are pleased that these families can now move forward without the burden of these oppressive fines. The Amish are extremely grateful for the support they've received from TDF donors.'

"While this case has been resolved, TDF continues to advocate for other members of the Amish community and other Canadians facing similar challenges with the legal system. The organization remains committed to defending constitutional rights and ensuring that all individuals receive fair treatment.

Founded in 2021, The Democracy Fund (TDF) is a Canadian charity dedicated to constitutional rights, advancing education, and relieving poverty. TDF promotes constitutional rights through litigation and public education and supports an access to justice initiative for Canadians whose civil liberties have been infringed by government lockdowns and other public policy responses to the pandemic."

Wednesday, June 11, 2025

What's up between Musk and Trump?

After Donald Trump's "Big, Beautiful Bill," conflict between Trump and Elon Musk was only a matter of time.

Can Trump and Musk Make Up? | Ron Paul Institute | Ron Paul:

June 9, 2025 - "Last week’s dramatic blowout between President Trump and his one-time top collaborator Elon Musk was shocking yet predictable. According to media reports, a cold war had been brewing between Musk’s people and Trump’s appointees and it was bound to break out into the open. It was only a matter of time.

Trump and Musk. Composite by Buadh, Wikimedia Commons.

"On the campaign trail, Musk provided much energy and helped ramp up enthusiasm for Donald Trump. His support for Trump made him a lightning rod for Trump-haters and he saw his personal wealth take a hit for his troubles.

"After Trump’s victory, Musk’s Department of Government Efficiency [DOGE] project was truly revolutionary. Americans were able to see up close and in real time just how government operates. Not only did the billions and trillions of dollars spent by the federal government not achieve the stated goals, but much of the spending actually harmed the United States.

"Americans were able to see that the 'aid' they send overseas does not provide food and relief for those suffering through disasters but is actually used to create a global US empire encompassing everything from the media to military spending to non-profits.

"Once USAID was targeted by DOGE, for example, we learned that 90 percent of the 'independent' media in Ukraine was US government controlled. Other countries chimed in to say that much of their own 'independent' media is propped up by the US government. Foreign 'journalists' paid by the US government are going to publish what the US government wants to be published. That is one reason Americans to this day are so ill-informed about Ukraine and what started the war. For example, how many Americans know that their own government staged a coup in Ukraine in 2014 that directly led to the disaster we have seen these past three years?

"The message was there for anyone who wanted to see it: The United States is being undermined by a government that demands the right to intervene in every aspect of our lives – and of the lives of everyone on the planet. It is not sustainable.

"In the end it was Trump’s 'Big Beautiful Bill' that broke it all apart. The US House served up a massive funding bill that, as usual, blew up the national debt with more spending and promised that sometime down the road spending cuts would kick in and we would start saving money. We’ve seen this movie many times before.

"In a post seen by over a hundred million people on his social media platform X, Elon Musk finally could hold his tongue no longer. 'This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination,' he wrote.... Musk was no-doubt frustrated that despite all of the work he and his team did to uncover government waste, he hit a brick wall in a Washington that recoils from any attempt to shrink its size and level of interference in our lives.

"Can Trump and Musk 'make up' and find a way to work together in the future? After the smoke has cleared we can only hope for a return to the principles of DOGE and the idea that current levels of spending and debt are unsustainable. Surely both men can agree on that."

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