GD's Political Animal: government spending

Showing posts with label government spending. Show all posts

Wednesday, December 24, 2025

US military budget tops $1 Trillion

U.S. Air Force planes at Pittsburgh Air Show, 2017. Wikimedia Commons.

A Christmas Gift to the War Machine | Ron Paul Institute | Ron Paul:

December 22, 2025 - "Late last week, Congress passed and President Trump signed the 2026 National Defense Authorization Act (NDAA). The bill marks the first time the US military budget officially passed the one trillion dollar [$1,000,000,000,000] mark. Of course, when you add in other military-related spending such as interest on the debt, veterans’ affairs, and military components of other government agencies, the true number is at least one and a half times that amount.

"To paraphrase the famous 1953 President Eisenhower speech, 'The Chance for Peace,' each of these dollars spent on military offense and the maintenance of the US global empire rather than on defense of our own nation is taken from the mouths of the hungry and off the backs of hardworking American families.

"Congress is so addicted to military spending that they appropriated even more money than President Trump requested, including an unconscionable $800 million for thoroughly corrupt Ukraine. Will Washington ever be called to answer for why Americans, who are seeing their standard of living eaten away by inflation and a declining economy, should continue to subsidize a criminal regime overseas whose ruling class enjoys the comfort of golden toilets?

"The Ukraine money also undermines President Trump’s claim to be a neutral mediator in the conflict. How can you be a peacemaker when you are sending nearly a billion dollars in weapons to one side to help kill the other side? It makes no sense.

"Congress even included measures in the bill that would prevent President Trump from bringing any US troops home from real 'forever wars' in Korea and Europe. For how many more decades must the American worker continue to subsidize a US military presence in countries completely unrelated to our own security? World War II ended 80 years ago and the Korean war some ten years later. Yet the American military empire remains, at an incalculable cost to Americans.

"Some fellow critics will say this is all about welfare for rich countries overseas, and that’s partly right. But more than that, it is welfare for the politically-connected US military-industrial complex at home. Imagine how many retired US military officers and former US officials-turned-lobbyists might be financially inconvenienced if we finally 'just marched home'?

"This week Western Christians will celebrate the coming of the Prince of Peace, with the Orthodox celebrating a few days later. It is disheartening that so many Americans who call themselves Christians also hold fast to a view that we must bankrupt our country and impoverish our people by playing policeman to the world and arbiter of whose regime must be changed by Washington.

"Christians are among the biggest victims in these overseas operations, including in Syria, Lebanon, and Gaza. Yet many American Christians turn a blind eye to the suffering and misery produced by neocon-led militarism overseas. They don’t care that unquestioning support for Israel, for example, has nearly erased Christianity from where it was born.

"Imagine if Jesus were born in the Holy Land today.

“Blessed are the peacemakers: for they shall be called the children of God.” That is the message of the Savior whose birth we Christians celebrate this week. Continuing to bankrupt our country and export misery overseas in the futile pursuit of a global military empire places us in opposition to this worthwhile advice. Let us all join together and work for a real peace in the New Year!

https://ronpaulinstitute.org/a-christmas-gift-to-the-war-machine/

Tuesday, November 11, 2025

First takes on the Carney budget

Canada budget adds tens of billions to deficit as Carney spends to dampen Trump tariffs effect | The Guardian | Leyland Cecco:

5 November 5, 2025 - "Mark Carney ... [will] run a deficit tens of billions larger than initially forecast in his first-ever federal budget. The spending plan, titled 'Canada Strong' envisions significant new defence spending, a reduction of the country’s civil service and 'generational investments' ... that would reshape the nature of the country’s economy.....

"As part of its huge spending plan, the Canadian government is increasing defence spending by C$84bn (US$59bn) over five years to combat an 'increasingly dangerous and divided world'. Carney has previously pledged to meet Nato’s goal of spending 3.5% of gross domestic product on defense, but the spending document does little to indicate how close Canada is to meeting that target.

"The budget envisions a reduction to the federal workforce by 2028-29 that would bring the civil service to a size similar to what is was in 2021. The government plans changes to retirement rules – not firings – to achieve that goal.

"In last December’s fiscal update, the federal deficit was projected to be C$42.2bn in 2025-26. But the Liberal plan will run a deficit of C$78.3bn in 2025-26. The government says it will aim to reduce the federal deficit to C$56.6bn by 2029-30....

"Despite criticism from opposition parties that the budget goes both too far in its spending or not far enough, one Conservative lawmaker [Chris d'Entremont] announced he would join the Liberal caucus.... The floor crossing is a key win for Carney’s Liberals, who govern with a parliamentary minority. Until Tuesday, the party needed the support of three lawmakers from other parties to pass this budget and avoid an election. With d’Entremont now sitting with the Liberals, that figure drops to two.

"Parliament is expected to debate the budget for four days, before voting on the spending plan on 17 November."

Carney’s reckless spending budget unites a divided opposition | Western Standard | Christopher Oldcorn

November 6, 2025 - "The Carney government is projecting a deficit of $78.3 billion for this fiscal year. This figure is almost double the $42 billion ceiling the Conservatives had demanded and shatters the prime minister’s own campaign promises of fiscal restraint.... Conservative Leader Pierre Poilievre slammed the budget as 'the most expensive in Canadian history,' accusing Carney of breaking every promise he made just seven months ago....

"A recent Nanos Research survey found that three-quarters of Canadians want the government to make spending cuts to manage the deficit. Furthermore, a majority would oppose having another federal election if this budget fails. Carney seems willing to ignore this clear message, having stated he is 'prepared to fight an election over the budget if necessary.'”

Carney’s 2025 “Canada Strong” federal budget: Austerity to fund rearmament, war and corporate profits | World Socialist Web Site | Pierre Lajeunesse

November 5, 2025 - "The 2025 federal budget that Finance Minister François-Philippe Champagne delivered to parliament Tuesday ... lays out a program of rearmament and corporate enrichment to be paid for through the slashing of public sector jobs, the evisceration of public services, and other sweeping attacks on working people.... The Liberals aim to spend less on healthcare, housing, education, public services and social supports—so they can funnel tens of billions more into weapons procurement, corporate tax incentives, resource extraction infrastructure projects, and the expansion of Canada’s military-industrial complex....

"In June, Carney announced an immediate 17 percent increase in military spending to ensure Canada met NATO’s 2 percent of GDP military spending target in the current 2025-26 fiscal year. Now the government is positioning the country to reach NATO’s new spending target of 5 percent of GDP, which will require raising the defence budget more than threefold from what it was last year, to $150 billion per annum by 2035.....

"The budget explicitly recommits Canada to a lead role in the US-NATO-instigated war against Russia.... To this end, Ottawa is allocating an additional $2.7 billion over three years to fund Operation Reassurance, the Canadian Armed Forces’ largest overseas deployment, supporting NATO’s forward military presence on Russia’s borders through its battlegroup in Latvia. In parallel, the government is launching a new $1 billion Arctic Infrastructure Fund to build airports, deep-water ports and all-season road networks across the North—dual-use projects designed to facilitate civilian logistics and military force projection toward the Arctic frontier, where resource extraction and strategic conflict with Russia and other global powers are intensifying....

"At the same time, to pay for this massive rearmament the government has initiated a sweeping program of cuts and restructuring across the public sector. The most immediate and devastating measure is the planned elimination of 40,000 federal public service jobs by 2028. The government plans to use attrition and buyouts, but has already signaled that it will invoke the public sector 'workforce adjustment' clause to impose layoffs where voluntary measures fall short.... The goal is not to improve efficiency, but to shrink public services so that resources can be diverted to the military and corporate sector."

Monday, September 29, 2025

Liberals' deficit trajectory unsustainable, warns Parliamentary Budget Officer

Interim Parliamentary Budget Officer Jason Jacques warns that the federal Liberal governments' current fiscal path is unsustainable,

Budget watchdog sounds alarm about Ottawa's 'unsustainable' fiscal path | Yahoo News | Craig Lord, Canadian Press:

Interim PBO Jason Jacques (from X).

September 25, 2025 -'Stupefying,' 'shocking' and 'unsustainable' — those were just some of the words Ottawa’s fiscal watchdog used Thursday to describe his scathing forecast for federal finances ahead of a long-anticipated fall budget.

"Interim Parliamentary Budget Officer Jason Jacques published an updated economic and fiscal outlook on Thursday where he projected the federal deficit would balloon to $68.5 billion this year, up from an estimated $51.7 billion last year.

"He also expects the federal debt-to-GDP ratio — previously a major fiscal anchor for Ottawa — will no longer decline in the coming years. Jacques told a parliamentary committee Thursday afternoon it is the first time in 30 years he has seen a projection where that key metric rises over time. Based on public statements from federal officials, spending plans announced over recent months and a weakening economy in the U.S. trade war, he said the path for federal finances appears broadly 'unsustainable.'

"'I think everybody should be concerned,' Jacques told MPs on the government operations and estimates committee. ]We’re hoping, and certainly expecting, the government as part of Budget 2025 to clearly indicate what the government plans to do to address … this problem, because it’s certainly not sustainable.'

"The PBO is a non-partisan officer of parliament. The office's updated fiscal and economic outlook offers parliamentarians a baseline estimate of the state of federal finances heading into the Liberals' fall budget on Nov. 4....

"The previous Liberal government under former prime minister Justin Trudeau set an anchor of capping the annual deficit at one per cent of GDP and maintaining a declining debt-to-GDP ratio. The PBO report forecasts that Ottawa will blow past those anchors in the upcoming budget.... The PBO expects deficits to decline slightly but to remain close to $60 billion annually over the forecast horizon. The Liberals projected a deficit of $42.2 billion for this fiscal year in its most recent update last December.

"The watchdog’s update does not include plans to incrementally ramp up defence spending to meet the updated NATO benchmark of five per cent of GDP by 2035.... Kristina Grinshpoon, the PBO’s director of fiscal analysis, told the committee that she believes there’s about $20 billion of proposed spending included in the Liberals’ spring election platform that’s not included in the office’s updated outlook....

"Jacques was named parliamentary budget officer on a six-month interim basis earlier this month, before the House of Commons began its fall sitting. A permanent appointment must be approved by the House, and the Conservative party has pushed to keep Jacques in the role."

Monday, August 4, 2025

Carney gov't won't stop Billion-dollar ferry loan

Notwithstanding its 'buy Canadian' policy and an ongoing trade war with China, the Carney government will not interfere in a Crown corporation's $1 Billion loan to B.C. Ferries to buy new boats from a state-owned Chinese shipyard.

Federal Ministers ‘Disappointed’ With BC Ferries Over China Vessel Orders, Won’t Cancel $1B Loan | Epoch Times | Matthew Horwood & Paul Rowan Brian:

August 1, 2025- "Federal ministers told MPs they are 'dismayed' and 'disappointed' by BC Ferries’ decision to purchase vessels from Chinese shipyards, but they won’t ask the Canada Infrastructure Bank (CIB) to cancel the $1 billion loan it provided the corporation for the purchase. Infrastructure Minister Gregor Robertson, who oversees the CIB, and Transport Minister Chrystia Freeland made the comments on Aug. 1 as they testified before the House of Commons transport committee....

"In June, BC Ferries announced it had hired state-owned China Merchants Industry Weihai Shipyards to build four vessels. The announcement came amid concerns with Chinese interference in Canada, as well as the United States imposing 50 percent tariffs on steel and aluminum, which has prompted Ottawa to prioritize 'buy Canadian.' No Canadian shipyard participated in the procurement process, with B.C. shipyard Seaspan saying it didn’t bid on the contract due to the difficulty of competing with countries that have lower industry standards.

"Robertson told the committee that Ottawa had no role in approving the $1 billion CIB loan for purchase of the vessels, saying the infrastructure bank operates at arm’s length from the federal government.... Robertson said he’s 'disappointed' by BC Ferries’ decision to hire a Chinese state-run shipyard, but argued the new ships will benefit Canadian workers through 'hundreds of millions of dollars in Canadian based maintenance [and] service support over the life of these vessels'.... Robertson, who became housing minister on May 13, said he only became aware of the CIB loan to BC Ferries on June 11 once it was too late to reverse-course on the deal signed March 28.... Robertson said his policy directions going forward would focus on a 'buy Canada' approach.

"Tory MP Leslyn Lewis, who serves as her party’s infrastructure critic, expressed disbelief that it took Robertson one month to learn about the CIB loan. Lewis subsequently put forward a notice of motion to abolish the CIB, saying its loan to BC Ferries violates section 6 of its founding act, which pledges to invest and attract investment in the Canadian public interest and with an aim to strengthen the sustainability of Canada’s infrastructure.

ImagePerson, B.C. Ferries vessel Coastal Renaissance in 2016. CC BY-SA 4.0, Wikimedia Commons.

"Freeland testified at the committee before Robertson and said that Transport Canada has provided $38 million in annual support to B.C. for ferry operations. She said she received assurances that this money would not be used in the procurement of Chinese ships.

"Opposition MPs pressed Freeland on whether she supported cancelling the CIB loan but she did not answer the questions.... Freeland reiterated that she was disappointed by the decision, and that she was doing 'everything in my power' to ensure Canadian workers, steel, and aluminum are prioritized.... Freeland said she is convening a meeting with the provinces and territories, ferry owners, shipyards, and steel and aluminum industry representatives to discuss 'the challenges related to the procurement of ferries in Canada.'

"CIB CEO Ehren Cory spoke Aug. 1 before the committee, saying that CIB’s loan to BC Ferries benefits Canadians regardless of where the ferries are being built.... He added that when discussions began in September of last year with BC Ferries about a loan, where the vessels would be constructed was not yet known and 'wasn’t part of the decision,' as the focus was on benefiting the approximately 23 million customers who use BC Ferries annually.

"Asked by Liberal MP Stéphane Lauzon about whether mandating Canadian labor and materials in projects comes down to political will, Cory said 'yes,' adding that if the government mandated BC Ferries to source vessels from Canada, the CIB would support that indirectly — possibly by increasing its loan. However, he noted that repaying a larger loan could mean higher fares for ferry riders."

Thursday, July 10, 2025

Carney gov't scrambles for savings for fall budget

Mark Carney's Finance Minister has directed cabinet members to find billions of dollars in savings before this fall's federal budget.

Finance minister directs cabinet colleagues to find billions in spending cuts | National Post | Antoine Trépanier:

July 7, 2025 - "Canada’s Finance Minister François-Philippe Champagne has directed his cabinet colleagues to find ways to cut spending by billions of dollars as he prepares to present his first budget in October. In two letters sent Monday to all his cabinet colleagues — including secretaries of state who sit outside cabinet as junior ministers — Champagne stated his intention to reduce program spending by 7.5 per cent for the 2026–27 fiscal year, by 10 per cent in the second year, and 15 per cent in 2028–29. National Post did not see the confidential letters, but several high-ranking sources confirmed their contents, as initially reported by La Presse.

“'As part of this ambitious review, each minister must examine the programs and activities in their portfolio to determine which (of them): achieve their objectives, are essential to the federal mandate and complement rather than duplicate what is offered elsewhere by the federal government or by other levels of government,' the letter states, a senior government source said. Champagne also asked ministers for 'three priority proposals that can be funded by the reallocation of existing funds, following a spending review' by the end of the summer. Liberal government insiders indicated that a first wave of budget cuts could be felt in the next budget....

"This initiative is being led by the Department of Finance and the Treasury Board at the request of Carney, who often repeated 'invest more, spend less' throughout his recent federal election campaign. His goal is to reduce the operating budget, while setting increased spending apart in the capital budget.

"The Parliamentary Budget Officer projected early this year that the federal deficit would fall to $50.1 billion during this fiscal year.... However, Carney has made several big-ticket spending announcements since then, including an income tax cut, cutting GST on new homes and dramatically amping up defence spending. The C.D. Howe Institute projected last week that this year’s deficit could reach $92 billion."

How will Canada reach its new defence spending commitments? | Ottawa Citizen | David Pugliese • Ottawa Citizen

June 26, 2025 - "Canada has signed on to the NATO pledge to increase defence spending to 5 per cent of annual GDP by 2035. That means that Canadians at that point will be spending $150 billion annually on defence and security. The NATO plan involves investing 3.5 per cent of GDP into core military needs, which includes armaments and equipment. Another 1.5 per cent will be spent on related infrastructure, cyber defence and security....

"Prime Minister Mark Carney has said that Canada should have no problem reaching the 1.5 per cent infrastructure portion by concentrating on projects that are already under way or currently being planned. That would include the development of the mining and stockpiling of critical minerals, an initiative that could see Canada becoming a trusted supplier to western nations for such material....

"But Carney has also hinted at cuts coming in other areas to fund the military spending boost. 'If we are moving to the higher and higher levels of defence spending because that’s necessary then we will have to make considerations about what less the federal government can do, in certain cases, and how we’re going to pay for it,' Carney told journalists at the NATO conference.

"Parliamentary Budget Officer Yves Giroux has said he doesn’t have enough information to determine how the Carney government will meet its spending commitments. But shortly before the NATO meeting, Giroux told Bloomberg News that for Canada to finance the 5 per cent GDP defence hike it 'would require a major shift of government priorities — away from social spending, for example — to free up some of the resources currently allocated to these types of expenses towards defence.' The spending hike could also be financed by 'some tax increases, for sure, or much higher deficits,' Giroux added."

Friday, July 4, 2025

Canada's deficit could top $90 Billion this year

Canada's C.D. Howe Institute expects federal deficits to average $78 Billion over the next four years, more than double what the parliamentary budget officer forecast before the spring election.

Federal deficit could average $78B over 4 years, think tank warns | CityNews Toronto | Craig Lord, The Canadian Press, and Cormac MacSweeney:

July 3, 2025 - "The C.D. Howe Institute predicts Ottawa’s recently announced spending plans — which include a much bigger defence budget — will drive its deficits markedly higher in the coming years. In a new analysis released today, the think tank says it expects Canada’s deficit to top $92 billion this fiscal year, given Prime Minister Mark Carney’s plan to meet NATO’s defence spending target of two per cent of GDP.

"C.D. Howe says it expects deficit growth to slow after that but predicts deficits will still average around $78 billion annually over four years, more than double the level forecast by the parliamentary budget officer before the spring federal election. The Liberal government did not publish a spring budget this year and has said it will instead push the planned fiscal update to the fall.

"In addition to ramping up defence spending, Prime Minister Carney’s Liberals recently pushed forward legislation to accelerate major project development and delivered a one-percentage-point cut to the lowest income tax rate.

"The C.D. Howe Institute accuses Ottawa of making costly commitments without showing the numbers to Canadians."

BIG BUCKS LOST: Federal deficit numbers keep soaring with no end in relief | Toronto Sun | July 4, 2025:

Federal deficit projected to soar to $92B this year: 'Unfair to pass these burdens on,' C.D. Howe Institute says | National Post | Simon Tuck:

July 4, 2025 - ""If this fiscal year’s deficit turns out to be as hefty as projected, it would be the second-largest deficit in Canadian history, topped only by the $327.7 billion shortfall from the pandemic year of 2020-21....

"Based on the most current and largely optimistic variables, the report says, federal deficits will remain above $71 billion during each of the following three years and in the fiscal year 2028-29 will be greater than three times what the government itself forecast in its most recent federal budget. But more likely, the report says, it will likely be a bit worse than that because the report’s authors say that they’re skeptical that all of the government’s plans to increase revenue through promised higher fines, penalties and savings will actually occur....

"But the most recent federal budget was now well over a year ago. The government took the highly unusual step this year of waiting until the fall to release its annual budget, more than half-way through the fiscal year.... The C.D. Howe report criticizes the government’s decision to wait until the fiscal year is more than half over before releasing its budget 'Delaying a budget until the fiscal year is more than half over is never good, but Canada’s current high-spending trajectory makes this delay especially bad.'

"Ottawa is making costly commitments, the report explains, without showing key numbers to the public such as how much more tax it expects to gather, the extent of its new spending and what the increased debt will mean for interest payments.... C.D. Howe suggests that the Liberal government eliminate or forgo some of its costly platform promises, make deeper cuts in its operating spending, substitute some revenue from less harmful taxation such as the GST, and cut federal transfers to provinces and territories."

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."

Sunday, May 18, 2025

Carney bypasses Parliament to spend $70 Billion

Since taking power, Prime Minister Mark Carney has authorized more than $70 billion in spending without parliamentary approval, by using "special warrants" normally reserved for emergencies.

Carney is already steamrolling basic constraints on power | National Post | Tristin Hopper:

May 16, 2025 - "Only two months into the job, Prime Minister Mark Carney is already steamrolling through the usual checks by which a Canadian government is supposed to spend and manage taxpayer money. During the federal election, Carney greenlit a record $70 billion without Parliamentary approval. And now, even before the House of Commons has reconvened, his government has signalled its intentions not to publish a budget. With both actions, the new Liberal government has neutered one of the reasons Canada has a Parliament in the first place: To review and manage the disbursement of money....

Mark Carney at World Economic Forum, Davos, 2010.

Photo by WEF. CC BY-SA 2.0, Wikimedia Commons.

"During his brief tenure, Carney has already used his executive authority to request two disbursements of money outside the federal government’s usual spending channels. On April 1, Carney was granted an order-in-council releasing $40.3 billion in emergency funds. The second, granted on May 2, was for $33.1 billion.

"The orders alone are not unprecedented: There’s long been a provision for the Governor General to release emergency funds to keep the lights on during a federal election. It’s called a 'special warrant'; an emergency dispensation of money 'urgently required for the public good.'

"Where Carney took the provision into uncharted territory is in the sheer scale of money, $73.4 billion, that he released via special warrants without the figures being approved by the House of Commons. In the snap election of 2011, by contrast, it only took $24.5 billion in special warrants to keep the federal government operational. The 2008 election required no special warrants....

"On the issue of a federal budget, Carney is also not violating any written rules in refusing to produce one. He’ll simply be breaking with more than a century of Parliamentary precedent in tabling multi-billion-dollar appropriations bills before the House of Commons with few specifics as to his government’s wider fiscal plans.

"It’s been more than five months since the federal government has actually approved funding the way it’s supposed to: Via an itemized 'money bill' that is approved in a vote by the House of Commons. The last one, for $21.6 billion, was passed on Dec. 10.... The Dec. 10 appropriations bill ... only covers four months of government spending.... There have been periods in Canadian history where the country has gone more than a year without a federal budget. But there were always extenuating circumstances. The most obvious being the failure to table a federal budget in 2020, the first year of the COVID-19 pandemic. In the midst of the Second World War, similarly, the feds went a then-record 482 days between budget presentations.

"But what hasn’t really happened before is a government refusing to table a budget in the immediate aftermath of a contentious federal election resulting in a hung parliament.... Conservative MP Mike Lake noted that the Tories had a budget ready only five weeks after their victory in the 2011 general election. Wrote Lake, 'it is entirely unacceptable for this new Carney Liberal government not to present a budget at this time of fiscal chaos caused by the previous Liberal government.'"

Thursday, May 8, 2025

Don't use tariffs to fund income tax cuts

It's folly to use tariffs to fund income tax cuts, warns Ron Paul. Tax cuts require spending cuts.

Tariff and Spend | Ron Paul Institute | Ron Paul:

May 5, 2025 -"President Trump has proposed using the revenue from his increased tariffs to lower or even eliminate income taxes — with a priority on removing Americans making less than 200,000 dollars a year from the tax rolls. Exempting more Americans from income taxes — and lowering taxes on other Americans— is certainly a worthwhile endeavor. However, replacing income taxes with tariffs may have negative consequences for the very Americans President Trump wants to help.

Ron Paul, 2007, Photo: R.D. Young. CC BY 2.0 Wikimedia Commons.

"Replacing with tariffs what the government raises from income taxes may require raising tariffs even higher than President Trump’s 'liberation' tariffs. This would cause more price increases and encourage other governments to retaliate by raising their tariffs, further disrupting supply chains and leading to even higher prices and shortages. The negative impacts of tariffs could dwarf the benefits of lower, or even no, income taxes.

"Consumers can try to avoid tariffs on goods. Massive avoidance of tariffs could lead to the imposing of higher tariffs or new taxes. The reason politicians must play the game of 'offsetting' tax reductions with tax increases is they refuse to make meaningful reductions in government spending. The politicians’ favorite tax is the Federal Reserve’s inflation tax because it is hidden. It is also regressive, making it the worst type of tax.

"The media and big spenders in both parties are screaming about how President Trump’s budget proposal contains large reductions in federal spending. However, even if all of President Trump’s 163 billion dollars of proposed cuts are enacted in law, the federal government will still spend about 1.7 trillion dollars next year in its 'discretionary' budget. The cuts would be less than eight percent.

"While President Trump is proposing many necessary cuts in federal agencies and programs, including those concerning the use of taxpayer money to promote 'wokeness,' his budget increases military spending to around a trillion dollars. It also makes no changes to Social Security or Medicare. This means President Trump’s supposed radical spending plan does not reduce spending on three of the four largest items in the federal budget. The fourth is interest payments on the national debt, which Congress cannot reduce except by cutting spending.

"Of course, it is unlikely that all, or even most, of President Trump’s spending cuts will be enacted into law. Prominent Republicans have already announced opposition to some of President Trump’s spending cuts. Some Republican defense hawks, including the chairman of the Senate Armed Services Committee, have criticized President Trump’s budget plan for not spending enough on the military!

"The truth is that, if the president and Congress were serious about cutting spending, they would start by slashing the Pentagon’s budget. Very little of the military spending actually goes to defending the American people. Instead, much military spending goes to maintaining a global empire and lining the pockets of the military-industrial complex. Does anyone believe the safety of Americans depends on the US government maintaining over 700 military bases abroad?

"The fiscal crisis facing America is rooted in a larger philosophic crisis. Too many Americans have embraced the notion that the US government has the moral right and competence to run the economy, run the world, and even run our lives. This system will not change until a critical mass of people embrace the ideas of liberty. Those of us who know the truth must do all we can to spread the message of liberty, peace, and prosperity."

Wednesday, April 30, 2025

Elon Musk's departure signals end of DOGE

Elon Musk's reported imminent departure from his Department of Government Efficiency (DOGE) project signals the end in failure of that attempt to limit government.

The Empire Strikes Back | Ron Paul Institute | Ron Paul:

April 28, 2025 - "News this week that Elon Musk will soon be departing his 'Department of Government Efficiency' (DOGE) is a grim reminder of what happens when you challenge big spending DC.... President Trump rode into office with the help of Elon Musk’s ambitious plan to cut two trillion dollars in spending and slash useless and bloated government bureaucracies. Opinion polls demonstrated the huge popularity of the 'Department.' Americans were excited when DOGE came to DC.

"The exposure of the real harm being done to the country by agencies like USAID and others reinforced the idea that much of the 'Federal bureaucracy' was simply not needed. Although Musk became a figure of hate for the entrenched special interests, to the large chunk of America forced to pay for Washington’s excesses he became a hero.

Trump and Musk. Composite by Buadh, Wikimedia Commons.

"Many in Congress, seeing its popularity, actively embraced DOGE. Suddenly those who helped us rack up $37 trillion in debt were talking about making huge cuts and posing for photos with Musk.

"Unfortunately, after the photos were taken and the hoopla had died down, Congress returned to doing what it usually does: nothing. There is no way for a DOGE to succeed without the Legislative Branch enshrining those cuts in legislation. But when the massive 'Big Beautiful' spending bill was introduced, the spending cuts were nowhere to be found.

"In the end it was the Beltway addiction to the global US military empire that may have hammered the final nail in DOGE’s coffin. The 'Big Beautiful' spending bill actually increased military spending even after President Trump hinted that a 50 percent cut was possible. Defense Secretary Pete Hegseth bragged about presiding over the 'first' trillion-dollar defense budget. Starting a war on Yemen – at over a billion dollars a month – and saber rattling over Iran are the most obvious evidence that the empire has struck back. And of course the DC hawks want to 'confrontz' China.

"This isn’t the first time a populist, popular movement to tame the Beltway beast was embraced then defeated by that same beast. The 'Tea Party' movement was launched in December, 2007, with volunteers supporting my 2008 Presidential campaign holding a record-breaking 24 hour “money bomb” on the anniversary of the 1773 Boston Tea Party.... The 'money bomb' success got Washington’s attention – money is the lifeblood of the political class – and before too long politicians of all stripes declared themselves to be part of the 'Tea Party'.... But actually cutting government? Not so much.

"The first thing these newly-minted 'Tea Party' members rejected was our demand for an end to the unsustainable, bloated military budget and our aggressive foreign policy. Eventually they backed away from other spending restrictions and within a few years the “brand” was diluted and tossed away.

"What is the lesson here? Is it all futile? Hardly. The popularity of DOGE shows that Americans still want a much smaller government. That is great news, and the country owes a debt of gratitude to Elon for reminding us of this. But until Americans elect Representatives who have the courage to follow through beyond photo-ops, we will sadly continue down the path toward bankruptcy and collapse."

Tuesday, November 26, 2024

Lessons from Canada's Randy Scandal

Canada's Randy Scandal illustrates why DEI politics and government contracting should be kept separate.

The Randy Boissonnault saga shows why identity politics and federal contracts shouldn’t mix | The Hub | Sabrina Maddeaux:

Randy Boissonnault in 2018. Photo by

Mack Male. CC BY-SA 2.0, Wikipedia Commons.

November 22, 2024 - "It takes more than your average scandal to get a cabinet minister removed from Prime Minister Justin Trudeau’s government.... But Randy Boissonnault, the now-former Employment minister, finally managed this practically unheard-of feat. On Wednesday, Trudeau announced Boissonnault would 'step away from cabinet effective immediately.' This comes after months of scrutiny on his former business Global Health Imports (GHI), which claimed to be 'Indigenous-owned' in bids for federal contracts even as Boissonnault’s Indigenous heritage claims shifted wildly.

"The saga and its fallout should extend far beyond Boissonnault and GHI, which are merely the most publicly recognizable tips of the iceberg that is the government’s Indigenous business procurement targets. These affirmative action style mandates should be scrapped, along with the very idea that government contracts should be awarded to favour certain identities.

"In 2021, Trudeau’s Liberals announced that a minimum of 5 percent of all federal department and agency contracts must go to Indigenous businesses. Even prior to these targets, a business’ inclusion in the government’s Indigenous Business Directory meant favourable treatment and limited competition for some contracts. However, like many well-intentioned, poorly executed diversity initiatives, ... such programs create perverse incentives to cheat the system, are practically impossible to audit at scale, and often fail to help the communities they claim to serve. Moreover, they fail to guarantee top value for taxpayer dollars....

"There have been other high-profile reports of alleged fraud and misrepresentations of Indigenous ownership that did result in major federal contracts. The most notable is the ArriveCan app, which saw a $7.9 million contract go to Dalian Enterprises Inc, self-described as 'Aboriginally owned, veteran operated.' The company has received more than $200 million in federal contracts since 2015, although it’s now suspended from working on existing contracts or bidding for new ones.... {I]t’s alleged Dalian, after securing a government contract, would [disburse] government funds and the work to other, non-Indigenous contractors. Indeed, when questioned by MPs about his firm’s work on ArriveCan, Dalian’s president and founder could barely articulate what his company did on the project and admitted to typically subcontracting out federal work to other companies. There have also been questions about the validity of his [indigenous] heritage claims....

"In 2016, it was discovered that Canadian Health Care Agency (CHCA), a major nursing contractor for remote and Indigenous communities, got itself listed on the federal Indigenous Business Directory by entering into a partnership with a one-person foot-care company owned by a First Nations nurse. However, the nurse had next to no say in the company and, worse, was eventually pinned with a $500,000 tax bill when the arrangement was audited. While CHCA was removed from the Indigenous Business Directory as of 2019, ... [i]t has since received at least 30 contracts from Indigenous Services Canada, totalling $131.7 million....

"Indigenous leaders themselves are ringing the alarm that the federal government’s Procurement Strategy for Indigenous Business (PSIB) is deeply flawed. In September, Assembly of First Nations (AFN) Regional Chief Joanna Bernard told a House committee, 'There is currently no consistent way of verifying the legitimacy of Indigenous businesses, which creates a risk of false claims, tokenism … [and] exploitation [by] bad actors.'

"While some may argue for increased auditing or different methods of identity verification, the reality is neither are realistic solutions. The federal government simply doesn’t have the capacity to —nor should it dedicate mass resources to — successfully audit a program that incentivizes fraud by being based on difficult-to-verify identity claims and ownership percentages.... We simply don’t know how much of the massive amount of public money earmarked for Indigenous contracts actually flows to Indigenous entrepreneurs.... The government isn’t able to assure the public their taxes aren’t going to frauds and frontmen, let alone that we get the best value and outcomes from the best companies for our money....

"Boissonnault’s time in cabinet didn’t end with the legacy he hoped, but it would be a shame for such a scandal to go to waste, used only for partisan barbs rather than a push for much-needed, common-sense reform. Procurement may be a typically wonkish topic, but it couldn’t be more vital to how Canadians experience government and access services. Federal policy must abandon its misguided adventures in identity politics to laser-focus on results."

Monday, November 4, 2024

Ron Paul willing to work with Elon Musk in DOGE

Libertarian icon Ron Paul is interested in playing a role in Elon Musk's proposed Department of Government Efficiency (DOGE) in a second Trump administration.

Elon Musk asks this ex-Congressman to join second Trump term to reduce… | Hindustan Times | Tuhin Das Mahapatra:

November 02, 2024 - "November 02, 2024 - "Elon Musk expressed interest in having Ron Paul in a potential Department of Government Efficiency if Trump wins the presidency.... 'Would be great to have Ron Paul as part of the Department of Government Efficiency!' he wrote on X (formerly Twitter).

"Paul approved Musk’s potential role as a government efficiency commissioner, replying, 'I'd be happy to talk with you about it, Elon.'

"Paul, who previously sought the presidency as a Republican and a Libertarian, noted his willingness to advise Musk on economic policy, emphasizing his dedication to educating the public about government overreach.

"When asked if he would work with Musk to address government waste, Paul said, 'Well I would.... But I wouldn't want an official position, you know, because I've sort of steered away from getting too involved in the politics of it all right now.' He then highlighted, 'I always say young people that were in high school and college, when I was doing all the campaigning, [were] a receptive audience,' contrasting it with his lack of support from business organizations like the 'Chamber of Commerce.'

"Paul advised that Musk proceed with caution if tasked with reducing government spending. 'You know, a position is easy to have and to hold. But the truth is, you know, what if I did get in this position and all I had to do is sign a piece of paper and the Federal Reserve was eliminated, or you cut the budget by $2 trillion … the consequence would be is total chaos and probably civil war and all that,' he remarked.

"Paul stressed that the public should understand the rationale behind reducing government expenditures, especially as economic challenges grow. He sees an opportunity to guide future policies once 'this thing falls apart' arguing that certain political factions benefit from societal unrest. He said, 'The cultural Marxists do it on purpose: the more chaos, the better.' So he remains as a “reluctant optimist,' heartened by the responsiveness of 'a lot of people out there, a lot of young people that seem to be very receptive to what we've been talking about.'"

Ron Paul, Donald Trump, Elon Musk. Courtesy Spectator Australia.

Ron Paul responds to Elon Musk’s invitation to join Trump administration | Express Tribune:

November 02, 2024 - "Musk recently posted that he would welcome Paul’s involvement in the department, which he humorously referred to as the 'Department of Government Efficiency (DOGE),' alluding to the cryptocurrency Dogecoin.... Musk’s interest in a governmental role has become increasingly visible, with the CEO explicitly stating his willingness to serve in a Trump-led administration if the opportunity arises. Following Musk’s post, Trump hinted at appointing him to an advisory or official role if elected president.

"Paul’s legacy in politics includes founding the Foundation for Rational Economics and Education (FREE) in 1976 and serving as the first chairman of Citizens for a Sound Economy. Often cited as the 'intellectual godfather' of the Tea Party movement, Paul’s influence extends across fiscal conservatism and anti-interventionist policies. If appointed, the combination of Paul’s libertarian principles and Musk’s tech-driven approach could bring an unconventional dynamic to government operations under a Trump presidency."

Thursday, July 4, 2024

$42 Billion U.S. broadband program has connected no one to Internet

Three years after Congress authorized $42 billion for Joe Biden's plan to give every American access to high-speed broadband internet, not one American has been connected under the plan.

Why Has Joe Biden's $42 Billion Broadband Program Not Connected One Single Household? | Reason | Joe Lancaster:

June 27, 2024 - "One of President Joe Biden's pledges upon entering office in 2021 was to expand Americans' access to high-speed broadband internet.... Contained within the 2021 infrastructure bill, the Broadband Equity Access and Deployment (BEAD) program authorized more than $42 billion in grants, to 'connect everyone in America to reliable, affordable high-speed internet by the end of the decade'.... Brendan Carr, the senior Republican commissioner of the Federal Communications Commission (FCC), wrote in a post on X .. this month [that] 'Years later, it has not connected even 1 person with those funds'....

"BEAD is administered by the National Telecommunications and Information Administration (NTIA), an agency of the Department of Commerce. NTIA Administrator Alan Davidson told lawmakers in May, 'with BEAD, this is really a 2025, 2026, shovels in the ground project'....

"In an April 2023 letter to Davidson, 11 Republican U.S. senators warned that 'NTIA's bureaucratic red tape and far-left mandates undermine Congress' intent and would discourage participation from broadband providers while increasing the overall cost of building out broadband networks.' Among several examples, the senators noted that NTIA's BEAD proposal 'requires subgrantees to prioritize certain segments of the workforce, such as "individuals with past criminal records" and "justice-impacted […] participants."' The infrastructure law that authorized the program merely required contractors to be 'in compliance with Federal labor and employment laws.'

"The previous year, in a letter to Commerce Secretary Gina Raimondo, Republican senators warned that the NTIA's proposed BEAD rollout 'creates a complex, nine-step, "iterative" structure and review process that is likely to mire State broadband offices in excessive bureaucracy and delay connecting unserved and underserved Americans as quickly as possible.' In practice, this is exactly what's happening:

"Multiple representatives from the telecommunications industry told MinnPost this week that they had no interest in applying for a piece of Minnesota's $652 million in BEAD grants. Brent Christensen, president and CEO of Minnesota Telecom Alliance, which represents 70 Minnesota telecom companies, said, 'None of them would bid for the federal grants because of the regulations that would come with it — especially the requirement to provide low-cost services to low-income households in exchange for grants that would allow internet providers to build out their networks.'

"MinnPost noted that new state laws also 'requir[e] companies who receive state grants to pay workers a "prevailing wage," a basic hourly rate paid on public works projects to a majority of workers in a particular occupation'.... 'It's becoming clear that it might be too risky to participate in the program,' Melissa Wolf, executive director of the Minnesota Cable Communications Association, told the outlet.

"Fortunately, the private sector is expanding access to broadband on its own: This year, the FCC raised the standard for which it considers 'broadband' to 100 Mbps download speeds and 20 Mbps upload speeds, up from its previous standard of 25Mbps download and three Mbps upload. 'Nearly 88 percent of households already live where at least two competitors offer 25/3 Mbps service, and 85 percent lived where at least one operator offers 100/20 Mbps service and a competitor offers 25/3 Mbps service,' Reason's Ronald Bailey wrote last year, citing an industry group report.... ' According to the OpenVault Broadband Insights report for the first quarter of 2024, 90 percent of all current broadband subscribers have download speeds of at least 100 Mbps already....

"These advances came from the private sector, without the added expense of $42 billion in taxpayer money. Satellite internet provider Starlink, which is part of SpaceX, claims that its users 'typically experience download speeds between 25 and 220 Mbps, with a majority of users experiencing speeds over 100 Mbps.' SpaceX CEO Elon Musk approvingly reposted an X user who claimed that "for $42 billion they could have bought Starlink dishes for 140 million people.'"

Biden's $42.5 billion rural high-speed internet plan gets stuck in red tape | Washington Times | June 20, 2024:

Thursday, June 20, 2024

RCMP investigating federal gov't contracting

Canada's RCMP has at least six ongoing investigations into irregularities in federal government procurement contracts, its commissioner has told the House of Commons.

RCMP Has ‘Multiple’ Open Investigations on Federal Contracting Irregularities, Commissioner Says | Epoch Times | Matthew Horwood:

June 19, 2024 - "The RCMP currently has over six investigations open into irregularities around federal procurement, its commissioner confirmed during committee testimony on its investigation into the ArriveCan app.

“'This committee, and Canadians, are looking for answers and accountability around ArriveCan,' RCMP Commissioner Michael Duheme testified before the public accounts committee on June 18. 'The RCMP has multiple investigations underway into these matters,' he added.... Mr. Duheme said the force has 'more than six' investigations open in regard to irregularities around federal procurement. 'That'd be as precise as I can get,' he said.

"When Conservative MP Garnett Genuis asked how many police investigations there were into government corruption, Mr. Duheme did not answer the question directly, but said it was 'too early' to refer to the cases as corruption. 'We are currently investigating several files that are looking at the procurement process that could lead to an element of corruption. But at this point in time, I’m not saying that we’re anywhere close to that. And again, I don’t want to get into any details,' he said.

"There have been months [of] committee hearings into the ArriveCan application, which was used to check the COVID-19 vaccination status of travellers crossing the Canada-U.S. border.

"A report by the auditor general in February found that the application cost an estimated $59.5 million to develop, but that record-keeping was 'so poor' that the precise cost of it could not be determined. The report also found that agencies like the Canada Border Services Agency, Public Health Agency of Canada, and Public Services and Procurement Canada failed to follow 'good management practices' in the contracting, development, and implementation of ArriveCan.

"Back in October 2023, the RCMP confirmed it was conducting an investigation into the potential misconduct of three companies that worked on the ArriveCan app — GC Strategies, Dalian, and Coradix — but not ArriveCan specifically.... On April 16, the RCMP raided the home of GC Strategies managing partner Kristian Firth as part of its investigation into allegations from Botler AI, a tech company that did not work on ArriveCan but was contracted for a separate project through GC Strategies. Mr. Firth was admonished by the House of Commons the next day for his failure to answer a government committee’s questions on the app."

Government refers suspected contractor fraud to RCMP, more cases could be coming | CBC News: The National | March 26, 2024:

Wednesday, June 5, 2024

Scandal-plagued 'green slush fund' shut down

The Trudeau government is shutting down its scandal-plagued Sustainable Development Technology Canada fund, after a scathing Auditor-General's report found contracting rules being ignored, board members voting in clear conflicts of interest, and funding being given to ineligible projects,

Government shuts down scandal-plagued cleantech fund after scathing auditor report | National Post | Christopher Nardi:

June 4, 2024 "Innovation Minister François-Philippe Champagne announced he is shutting down Sustainable Development Technology Canada — a scandal-plagued cleantech fund derogatively referred to as the 'green slush fund' by Conservative MPs — in response to a scathing auditor general report on Tuesday. The government plans to transfer STDC’s funding responsibilities to the National Research Council (NRC)....

"Auditor General Karen Hogan found that one out of six projects funded by STDC that she audited to the tune of millions were ineligible. [She] also found the organization had serious governance issues.... The auditor also found that the federal public service consistently disregarded its own contracting rules when it awarded $209 million worth of contracts to consulting firm McKinsey, which she described as a symptom of larger issues with the government’s overall procurement practices.... Hogan published two scathing reports Tuesday on how the government manages taxpayer funds either though professional services contracts or funding granted by STDC.

"A first audit of nearly 100 contracts awarded since 2011 to controversial consulting firm McKinsey & Company found 'frequent disregard for procurement policies and guidance' and infrequent proof of value for money.... 71 per cent of those contracts, worth $118 million, were awarded on a non-competitive basis. It also took a swipe at the government’s central purchasing agency, Public Services and Procurement Canada (PSPC), for failing to challenge other federal organizations when they issued contracts that appeared to overlap....

"Hogan audited 33 of the 97 contracts granted to McKinsey since 2011 and found that critical information was missing in over half (19) of them, such as why the contract was needed, what were the expected deliverables and if they were all provided, and whether the “ultimate intent” of the contract was met. 'All of the above meant that value for money could not be demonstrated for these contracts,' she wrote....

"In her report on STDC, Hogan says she found 'significant lapses' in the foundation’s governance and how it managed public funds. Between 2017 and 2023, STDC’s board approved $836 million worth of funding aimed at helping green technology projects start up, scale up, support their seed funding round, or develop partnerships and networks. But the AG found that the foundation gave out dozens of funding awards — totalling nearly $60 million — to projects that didn’t meet its eligibility criteria, failed to follow its conflict-of-interest policies in nearly 100 cases, and that its board didn’t even have the minimum number of members required by law.

“'We found that the foundation awarded funding to projects that were ineligible, that conflicts of interest existed in some instances, and that certain requirements in the Canada Foundation for Sustainable Development Technology Act were not met,' reads the report. 'It’s not always clear that funding decisions made on behalf of Canadian taxpayers were appropriate and justified,” Hogan added in a statement. 'We found 90 cases where their records showed that members of the board who had declared a conflict of interest were involved in discussions and then voted on awarding funding to a project, and that should not happen,' she told the Commons public accounts committee Tuesday morning....

"STDC has been in turmoil since the media reported on internal whistleblower reports flagging significant governance and conflict of issues within the organization beginning in February 2023. There are at least five ongoing or completed investigations into the STDC’s governance, labour practices and funding decisions, including by the AG and the federal ethics commissioner. The president of the board of directors, Annette Verschuren, resigned last year after being the subject of an investigation by the ethics commissioner. She admitted to having approved more than $200,000 in subsidies to the company NRStor, which she runs. The president and CEO of SDTC, Leah Lawrence, also resigned."

Read more: https://nationalpost.com/news/canada/ottawa-ignored-rules-hiring-mckinsey-auditor-general

“Billion-dollar green slush fund scandal”: Conservatives push for answers to whistleblower claims | Global News | December 12, 2023:

Thursday, April 25, 2024

Tech sector warns of harm from Liberals' Budget

Industry leaders are warning that the Liberals' Budget 2024 could cause "irreparable harm" to the tech sector in Canada.

Tech sector slams Liberals’ capital gains tax hike as “irreparable harm” | True North | Isaac Lamoreux:

April 17, 2024 - "The Liberal government’s 2024 federal budget has sent shockwaves through Canada’s tech sector, with sweeping increases to capital gains taxes being the main cause for concern. Leaders within the industry are voicing criticism at the Liberals, suggesting that further taxation could drive businesses and talent south of the border. The budget, delivered by Finance Minister Chrystia Freeland, raises the inclusion rate for capital gains tax from 50% to 66% for individuals on amounts exceeding $250,000. The amendments to the Income Tax Act will come into effect on June 25, 2024. The Liberals expect to make $19.4 billion over the next five years from [the move]....

"Benjamin Bergen, president of the Council of Canadian Innovators, explained in his organization’s response to the budget that the best way for the government to boost its revenue is to drive economic growth and productivity gains by helping Canada’s innovators. 'We hope that Minister Freeland and the Liberal government will listen to innovators and adjust this proposed tax hike before they do irreparable harm to the Canadian innovation economy,' he said....

"Local entrepreneur Boris Wertz ... felt that the Liberals had 'lost their plot on innovation and entrepreneurship.' His biggest concerns were 'trying to pick winners (e.g. superclusters); proposing very rigid AI regulations; dramatic increase of number of public sector employees; (and) increasing capital gain rate.' The budget promises to invest $2.4 billion in AI support, $5.1 million of which will be dedicated toward the Artificial Intelligence and Data Act — ensuring that AI is 'safe and non-discriminatory,' according to the Liberal government....

"Kim Furlong, CEO of the Canadian Venture Capital and Private Equity Association, said that her organization is 'baffled' by the Liberals’ decision to increase the capital gains tax. 'This measure, which effectively taxes innovation and risk-taking, will significantly dampen Canada’s entrepreneurial spirit, stifle economic growth in critical sectors of our economy, and impact job creation. Such policy change undermines Canada’s position to attract the talent needed to grow and scale companies here,' she said. 'CVCA will work tirelessly to reverse this decision,' said Furlong.

"The founder of a venture capital firm, Christian Lassonde, said that Canada is desperate for new investment dollars. 'What does this government do? Punish investing. You can’t make this stuff up,' he wrote in a post to X.

"President and CEO of the Canadian Federation of Independent Business, Dan Kelly, said that the capital gains tax changes will demotivate Canadians from starting businesses in the first place. 'Several sectors of Canada’s (small and medium enterprises) community will be hit with higher capital gain taxes on business sales above $2.25 million, including restaurants, hotels, doctors’ offices, insurance brokers, real estate firms, recreation and arts and recreation firms,' said Kelly in a post to X.

"Armon Shokravi, co-founder of a software development business, explained in a post to X that the tax changes, of an inclusion rate from 50 to 66%, would increase the net capital gains tax from 27% to 36%, compared to the United States, who have a tax rate of 20%. 'In my conversations with Canadian entrepreneurs, it’s clear: They’re feeling less motivated to build businesses here when moving just a bit south could mean saving a lot more,' he said.....

"Independent MP Kevin Vuong shared a text message from a local business owner. The former founder, who works in the tech sector, said that they and their partner sat down last night and began the process of moving to the United States. 'We’re leaving to a country that celebrates entrepreneurs and innovation,' they said. 'The world is too competitive for talent and Canada is not competitive anymore.'

Budget 2024 picks a fight with Canadian tech | BetaKit Podcast | April 22, 2024:

Friday, April 19, 2024

Budget 2024 shows Liberals' fiscal irresponsibility

Spending, taxes, and debt will all increase under the Liberals' Budget 2024; the only thing expected to decline is Canadians' standard of living.

Federal budget’s scale of spending and debt reveal a government lacking self-control | Fraser Institute | Jake Fuss & Grady Munro:

April 16, 2024 - "Time and time again, Prime Minister Justin Trudeau and Finance Minister Chrystia Freeland have emphasized the importance of being fiscally responsible with federal finances. Unfortunately, this year’s federal budget ensures once again their rhetoric rings hollow due to their ongoing mismanagement of federal finances. This mismanagement is rooted in the government’s insatiable appetite for new and expanded programs or services, which has endured for nine years and will continue for the foreseeable future.

"The budget introduces billions of dollars in additional spending for a national school food program, housing initiatives and artificial intelligence. As such, program spending (total spending minus debt interest costs) is now expected to be $77.2 billion higher over the next four years than the government forecasted last spring. In 2024/25 alone, federal program spending will reach a projected $483.6 billion—an increase of $16.1 billion compared to the previous budget’s estimates.... The Trudeau government has already recorded the five (2018 to 2022) highest levels of federal program spending per person in Canadian history (inflation-adjusted).... This is despite recent polling data that shows the majority of Canadians (59 per cent) think the Trudeau government is spending too much. Nearly two-thirds (64 per cent) of Canadians are also concerned about the size of the federal deficit.

"As it has done nine times before, the Trudeau government will borrow to fund some of its spending spree, resulting in a projected budget deficit of $39.8 billion this year, which is $4.8 billion higher than previously forecasted. And it doesn’t intend to stop borrowing, with annual deficits exceeding $20 billion planned for the subsequent four years.... Simply put, there’s no plan for a return to balanced budgets any time soon. As a result, federal debt (net debt minus non-financial assets) is expected to climb $156.2 billion from now until April 2029....

"Growing federal debt leads to higher debt interest costs, all else equal, which eat up taxpayer dollars that could otherwise have provided services or tax relief for Canadians. For context, the government now spends more ($54.1 billion) on debt interest as on health-care transfers to the provinces ($52.1 billion). Accumulating debt today also increases the tax burden on future generations of Canadians who are ultimately responsible for paying off this debt. Research suggests this effect could be disproportionate, with future generations needing to pay back a dollar borrowed today with more than one dollar in future taxes....

"But again, it didn’t have to be this way.... [H]ad the government simply limited the growth in annual program spending to 0.3 per cent for two years, it could have balanced the budget by 2026/27.... Instead, the government chose to increase annual program spending by an average of 4.4 per cent over the next two years and kick the debt problem down the road for another government to solve.

"Yet for all this spending and debt, living standards have not improved for Canadians. In fact, inflation-adjusted GDP per person was actually lower at the end of 2023 than it was nine years prior in 2014. And going forward, the OECD predicts Canada will record the lowest growth rates in per-person GDP up to 2060 of any industrialized country....

"The combination of tax hikes and scale of spending and debt in this year’s federal budget demonstrate the Trudeau government has no interest in being fiscally responsible or improving living standards for Canadians. Instead of showing restraint, the government chose to repeat its mistakes and lead federal finances down an increasingly perilous path."

Debt Dilemma: Unpacking Canada's 2024 Budget | KelownaNow | April 17, 2024:

Monday, April 1, 2024

Pass my bill without reading it, Canada's Deputy PM tells Senate

Deputy Prime Minister Chrystia Freeland recently told Canada's Senate to pass an almost $9 Billion spending bill without reading it. (Note: This is not an April Fool's story.)

Freeland urges senators to pass last-minute $8.9 billion bill before reading it | Western Standard | Jen Hodgson:

Chrystia Freeland, 2017. Wikimedia Commons.

March 29, 2024 - "Finance Minister Chrystia Freeland provoked outrage after asking senators to pass an $8.9 billion budget bill they had not yet read, Blacklock’s Reporter reports. The greatest portion of Freeland’s last-minute increased spending bill tacks on $3.2 billion to cover interest charges on the national debt.... This is not the first time the Trudeau Liberals have tried to get a bill passed before it was adequately reviewed.

"Bill C-67 An Act For Granting To His Majesty Certain Sums Of Money, seeking approval for new spending in the billions to take care federal expenses until the end of the fiscal year (March 31, 2024), without disclosing the legal text of the bill. 'Prudent spending is the government’s focus,” said Sen. Patti LaBoucane-Benson, Cabinet’s legislative deputy in the Senate, adding the failure to publish the bill in advance was 'really a House of Commons problem.'

“'You need the bill to vote on it,' said Sen. Elizabeth Marshall, a former provincial auditor. 'I haven’t seen the bill. It’s not posted. I don’t know how we can vote on a bill that we haven’t seen'....

"Senators suspended the meeting for an hour while clerks distributed copies of the bill. 'This is an embarrassment,' said Senate opposition leader Senator Donald Plett....

"In addition to the $3.2 billion to go towards paying interest charges on the national debt, Freeland’s bill proposes $2.2 billion more for national defence and $1.2 billion in pay increases for federal employees. The bill granted Canada Mortgage And Housing Corporation (CMHC) an extra $101 million to cover loan losses and write-offs under the National Housing Act and approved an extra $34.6 million to run the federal prison system.

“'I want to bring up a little bit of history,' said Sen. Denise Batters. 'This is not the first time this sort of thing has happened.' Parliament from the outbreak of the COVID-19 pandemic on Friday, March 13, 2020 in less than two hours passed without debate three budget bills granting cabinet wartime spending powers for 90 days. The Commons then voted itself out of session for five weeks. Blacklock’s that day confirmed no text of the bills was disclosed until hours after they were signed into law.... Prime Minister Justin Trudeau’s Liberal government then used the bills to grant itself authority to borrow without parliamentary scrutiny a total $350 billion by March 31, 2020."

Wednesday, March 13, 2024

CBC gave out $25M in raises & bonuses in 2023

During 2023 Canada's state broadcaster, the Canadian Broadcasting Corp. (CBC), warned of a $125 million deficit, announced plans to cut 10% of its workforce, was bailed out with an extra $95 million from the Liberal government – and (it turns out) also handed out more than $25 million in raises and bonuses.

CBC hands out $15 million in bonuses despite laying off hundreds of staff | Western Standard | Western Standard News Services:

March 12, 2024 - "According to access-to-information records obtained by the Canadian Taxpayers Federation (CTF), the CBC distributed a staggering $14.9 million in bonuses throughout 2023. This revelation has drawn sharp criticism, particularly in light of the broadcaster's announcement just weeks before Christmas, 2023 that it planned to lay off hundreds of employees. Since 2015, the CBC has issued a total of $114 million in bonuses.

"'CBC President Catherine Tait is wrong to hand out bonuses while announcing hundreds of job losses and begging the government for more taxpayer cash,' said Franco Terrazzano, CTF [Canadian Taxpayers Federation] Federal Director, condemning the actions of CBC leadership. Terrazzano further urged Canadian Heritage Minister Pascale St-Onge to intervene and halt the distribution of bonuses in the face of ongoing layoffs.

"The disclosure indicates that 1,143 CBC staffers received bonuses in 2023, with costs to taxpayers totaling nearly $15 million. However, this number could potentially rise, as the data provided is current only up to October 26, 2023....

"Tait defended the bonuses, citing them as a crucial component of the total compensation package for non-union staff. Tait's remarks came during her appearance before a parliamentary committee in January 2024, where she faced questioning on executive bonuses and the planned workforce reductions.

"Further scrutiny revealed additional financial expenditures at the CBC, including $11.5 million in raises for the 2023/24 fiscal year, benefiting 6,575 employees, representing 87% of its workforce. These raises, obtained through separate access-to-information records, bring the total sum of pay raises since 2015 to $97 million. Moreover, data indicates that the number of CBC staffers earning six-figure salaries has surged by 231% since Prime Minister Justin Trudeau assumed office in 2015.

"Despite Tait's assertions of 'chronic underfunding,' the federal government recently announced a substantial increase in funding for the CBC, totaling $96.1 million. This boost brings the broadcaster's taxpayer funding for the 2024/25 fiscal year to $1.4 billion....

"Tait's annual pay, which includes salary, bonus, and other benefits, falls between $472,900 and $623,900, according to CBC's senior management compensation summary."

CBC paying out millions in bonuses while laying off staff | True North | March 12, 2024:

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