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Prime Minister Justin Trudeau’s carbon tax consensus within his Liberal party is collapsing.

Newfoundland and Labrador’s Liberal premier, Andrew Furey, might end up being the man who finally takes down the Trudeau carbon tax.

After months of trying to get Trudeau to be more flexible on the carbon tax, Furey has come out against the policy altogether.

Let’s look back at how this came to be.

It’s no secret that opposition to the Trudeau government’s punishing carbon tax was strong early on and has been growing ever since.

But a large chunk of that opposition was concentrated among conservative politicians.

Premiers like Doug Ford in Ontario, Blaine Higgs in New Brunswick and Scott Moe in Saskatchewan have all been calling on the Trudeau government to scrap the federal carbon tax since they came to power in 2018.

But until recently, Trudeau had the tacit support of most Liberal politicians at all levels.

As Trudeau has hiked his carbon tax further and further, Liberal politicians couldn’t keep selling the scheme, especially for constituents who don’t live in tiny condos in downtown metropolises.

The federal carbon tax now costs drivers 17 cents per litre at the gas pump and homeowners with natural gas are paying than $300 this winter. The federal government plants to keep raising the carbon tax until 2030, so it’ll only get worse.

Over the past year, Furey, Canada’s lone Liberal first minister, has gone from supporting Trudeau’s carbon tax to becoming an outright antagonist.

Last year, Furey called on the federal government to stop charging the carbon tax on home heating oil, which a large percentage of Newfoundlanders and Labradorians use to heat their homes.

Soon thereafter, Newfoundland and Labrador Member of Parliament Ken McDonald courageously voted to repeal the federal carbon tax and nearly launched a rebellion in the Liberal caucus among Atlantic Liberal MPs. In response, Trudeau carved out a carbon tax exemption for home heating oil for the next three years.

But Furey wasn’t satisfied.

In the lead up to the Trudeau government’s 2024 carbon tax hike, which occurred on April 1, Furey signed an open letter to Trudeau calling on the federal government to cancel its planned hike. Six other premiers joined him in that effort.

Yet Trudeau was defiant and let the 23 per cent carbon tax increase go ahead.

That’s when Furey threw down the gauntlet.

In a letter to Trudeau, Furey declared openly what the vast majority of Canadians already know: the carbon tax is the wrong approach when it comes to protecting the environment.

Unlike Canadians living in downtown Toronto or Vancouver, with tiny condos and easy access to public transit, Furey notes Newfoundlanders and Labradorians can’t still need to drive to work and heat their homes no matter how high the carbon tax goes.

The idea behind the carbon tax is that as prices get too high, consumers change their behaviour and use less carbon intensive methods to heat their homes and get to work.

But those living in rural Canada can’t hop on the subway or rely on a heat pump.

Furey notes in his letter that for many, “there are no alternatives available.” So, if Trudeau’s goal is to use the carbon tax to lower emissions, that goal “is not being achieved at this time.”

Furey concludes: “We need a constructive approach to decarbonize our environment without placing the burden on individual families who simply do not have viable alternative options.”

Furey is calling on Trudeau to convene an emergency meeting of Canada’s premiers to search for alternatives to the carbon tax.

Seventy per cent of Canadians opposed Trudeau’s carbon tax hike on April 1. It’s a good bet that number will keep going up every time the tax goes up. Furey is right to point out that obvious reality and the prime minister should listen.

Jay Goldberg is the Interim Atlantic Director of the Canadian Taxpayers Federation

 

The views, opinions and positions expressed by columnists and contributors are the author’s alone. They do not inherently or expressly reflect the views, opinions and/or positions of our publication.


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Ontario Premier Doug Ford just can’t resist a bad deal.

Ford put Ontario taxpayers on the hook for $10 billion in corporate welfare handouts to two of the world’s biggest and most profitable automakers.

He also committed Ontario taxpayers to spending billions to bail out the city of Toronto without conducting an audit of the city’s finances.

And now, Ford has bought into the FIFA World Cup soccer fiscal fiasco.

Ford announced last week he was committing Ontario taxpayers to pay up to $97 million toward the cost of Toronto hosting six World Cup games in 2026.

But do a quick look at the numbers and it’s clear Ford is making a bad investment.

When the city of Toronto was deciding whether to bid to host some World Cup games, city bureaucrats originally calculated it would result in $307 million in economic benefits.

Those benefits will largely go to local Toronto businesses, who could get additional tourism.

At the same time, Toronto bureaucrats initially estimated that hosting six FIFA games in 2026 will cost taxpayers at least $290 million.

That means if the cost of hosting the games goes even seven per cent over budget – which is a near certainty – the net economic benefits will be outweighed by the net economic costs.

The city has trotted out new numbers suggesting economic activity will surpass $307 million, but has yet to release any detailed analysis to explain how more economic activity will be generated than originally thought.

Either way, let’s remember it’s city businesses that will see the economic benefits while taxpayers will be the ones bearing the costs. Taxpayers paying for FIFA is just another form of corporate welfare.

It’s also important to note the increased economic activity will happen in Toronto while taxpayers across the province foot the bill.

The litany of costs placed on taxpayers’ shoulders is unfair when one examines who will benefit financially from FIFA.

Taxpayers are on the hook for paying the full cost of renovating BMO Field to ensure there are enough seats and amenities to reach FIFA’s hosting standards.

No less than 17,750 temporary seats will have to be added.

The city of Toronto signed a deal committing taxpayers to paying for all of the renovations at the Maple Leaf Sports and Entertainment owned BMO Field, while promising to share up to 50 per cent of the economic benefits with MLSE.

Toronto also committed to paying MLSE to compensate for any lost profits while BMO Field is closed for renovations.

That means taxpayers will be paying for both the renovations and any lost revenue during construction, but will share any profits from economic activity at BMO Field with MLSE. Profits will be shared 50-50 for the first $10 million and 60 per cent for the city and 40 per cent for MLSE beyond the first $10 million.

That’s a raw deal if there ever was one.

Then there’s FIFA. FIFA is forcing taxpayers to pay for these renovations to BMO Field, but intends to keep all the money from ticket sales. FIFA expects to make $15 billion (CAD) from the World Cup in 2026.

Once again, taxpayers will be forced to pay for most of the costs while another entity – in this case FIFA – keeps a large share of the benefits.

Finally, taxpayers should be concerned about Ford’s decision to commit taxpayer dollars to help finance Toronto’s World Cup bid when taxpayers can’t even see the terms of Toronto’s deal with FIFA.

Toronto signed a deal to host six games with FIFA behind closed doors. Taxpayers are not allowed to see the agreement because of non-disclosure agreements. It even took Mayor Olivia Chow months to get a look at the fine print.

The bottom line is that paying $51 million per game for a soccer tournament in Toronto is a mistake. The risks to taxpayers are too great and our politicians shouldn’t be falling over each other to throw cash at FIFA while leaving taxpayers vulnerable to soaring costs.

Politicians must either rip up the deal with FIFA to save taxpayers from what is sure to be spiraling costs or negotiate a better deal with FIFA and MLSE to limit taxpayers’ risk and get more bang for the taxpayer buck.

Jay Goldberg is the Ontario Director of the Canadian Taxpayers Federation

The views, opinions and positions expressed by columnists and contributors are the author’s alone. They do not inherently or expressly reflect the views, opinions and/or positions of our publication.


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The views, opinions and positions expressed by columnists and contributors are the author’s alone. They do not inherently or expressly reflect the views, opinions and/or positions of our publication.


It’s a dirty little secret Ontario politicians never want to talk about: Ontario taxpayers pay a special health-care tax.

Politicians of all stripes love to boast that Ontario taxpayers simply have to take out their health cards, and not their credit cards, to see their doctor or access emergency services.

But the truth is that Ontario taxpayers pay a special surtax on top of their provincial income taxes called the Ontario Health Premium.

Former premier Dalton McGuinty famously introduced Ontario’s health tax in 2004, claiming the tax was needed to fund the system and improve health outcomes.

Spoiler alert: taxpayers pay more, governments spend more, and outcomes are heading in the wrong direction.

When McGunity introduced Ontario’s health tax in 2004, he designed it to hit virtually every taxpayer.

Anyone in Ontario earning more than $20,000 a year is on the hook for McGuinty’s health tax. The tax is phased in at $20,000 of income and rises to as high as $900 a year for the province’s top income earners.

Given that the median income in Ontario is roughly $54,000, the average Ontario worker is on the hook for $600 in health taxes this year.

The health tax is a sneaky one. It’s taken right off your paycheque along with your income tax, so most taxpayers don’t even realize they’re paying it.

And the tax adds up. The Ford government expects to rake in $4.8 billion this year from the province’s health tax.

Ontarians are also the only taxpayers in Canada on the hook for a special health tax.

Some might argue a health tax makes sense if it improves outcomes for patients. But Ontario’s health-care outcomes have been trending in the wrong direction.

Thirty years ago, the typical Ontarian waited 9.2 weeks to see their family doctor and then get treated by a specialist. Last year, the average wait was 20.3 weeks.

Even though outcomes are worse, taxpayers are paying more. Ontario now spends $2,500 more per person on health care than it did in 1993, after adjusting for inflation.

Back in 1993, Ontarians didn’t have to pay a health tax. Today, taxpayers are on the hook for up to $900.

The long and short of it is the province is spending thousands of dollars more per person to pay for a worsening health-care system.

There’s no reasonable explanation to justify Ontario’s health tax. It hasn’t improved outcomes and only hits family budgets.

The Ford government needs to scrap Ontario’s health tax. A two per cent reduction in government spending would offset eliminating the health tax.

That would save the average Ontario taxpayer hundreds of dollars a year.

Still, Ontario’s health outcomes do remain a cause for concern. Declining outcomes in Ontario reflect a broader trend across Canada. Governments are spending more but patients are getting less.

There are two keys to improving outcomes and costs: fighting bureaucracy and allowing for more choice.

On the bureaucracy front, it’s time to recognize that there are too many bureaucrats on the taxpayer payroll and its eating up too much of the health-care budget.

This year, Ontario will spend $8 billion on health costs not related to front-line services.

Think that’s bad? Consider this: Canada has 10 times as many health-care bureaucrats as Germany, even though Germany has twice Canada’s population.

Ontarians are paying a health tax to fund government bloat and bureaucracy. That needs to end.

Then there’s flexibility. Other countries like the Netherlands have been able to improve outcomes by expanding consumer choice and allowing taxpayers to choose and pay for specific coverage beyond basic taxpayer-funded provisions. Canada could look at doing the same.

The bottom line is that it’s time to scrap Ontario’s health tax. Politicians should instead reform the system through targeting bureaucracy and improving flexibility, not soaking families.

Jay Goldberg is the Ontario Director of the Canadian Taxpayers Federation

The views, opinions and positions expressed by columnists and contributors are the author’s alone. They do not inherently or expressly reflect the views, opinions and/or positions of our publication.


Ontarians are looking for a government that is responsible with taxpayers’ money and leaves more in their wallets. And a lot of the promises that got Premier Doug Ford elected still haven’t materialized.

Enter Mississauga Mayor Bonnie Crombie.

Crombie just won the leadership of the Ontario Liberal Party. She’s been talking a good game about responsibly managing Ontario’s finances. And it appears she recognizes where the Ontario Liberals have gone wrong in the past.

“I think some of the decisions were too costly for Ontarians,” Crombie said in an interview last May. Crombie questioned the Wynne government’s spending choices in areas ranging from health care to child care.

During the Ontario Liberal leadership campaign, Crombie campaigned on policies to attract voters who were disillusioned with the reckless spending last time the Ontario Liberals controlled Queen’s Park.

Crombie also has a decent record as mayor of Mississauga. During her time in office, she’s largely kept property tax increases in check. Next year’s local property tax hike is set to come in under the rate of inflation and will be among the lowest increases in the GTA.

Ford rode a wave of taxpayer discontent straight to the premier’s office. He promised to get the province’s reckless spending under control and lower the tax burden on hardworking Ontarians.

But so far, Ford has failed on both fronts.

Crombie now has an opportunity to win over Ontarians frustrated with the tax-and-spend policies championed by both previous Liberal governments and the Ford Progressive Conservatives.

Here are three things Crombie could do to position herself as the taxpayer fighter Ford once promised to be: commit to balancing the budget, lower the tax burden for hardworking Ontarians and take the provincial debt seriously.

Ford promised Ontarians just months ago that he would balance the books next year. Instead, the government’s fall economic update announced a $5-billion deficit.

Crombie should lay out a vision to immediately balance the budget. There’s a lot of wasteful spending Crombie could go after, ranging from corporate welfare, to the new Ontario Infrastructure Bank, to taxpayer payouts to political parties.

Then there’s taxes. Ford promised a middle-class tax cut in 2018, but he hasn’t delivered. Ford promised to cut the second income tax bracket by 20 per cent, saving Ontario taxpayers up to $786 a year. Taxpayers are still waiting for those savings.

Crombie should promise a tax cut of her own to win the support of millions of Ontarians who are barely making ends meet. Income taxes are too high. The government’s gas tax cut is only temporary. And high sales taxes only make inflation worse. Crombie could pledge to lower any one of those taxes and find positive reception in every part of the province.

Crombie also needs to present a plan to lower the debt.

Ontario now has $400 billion in debt, largely thanks to the province’s last two Liberal premiers, Dalton McGuinty and Kathleen Wynne. The debt spiral they initiated is a major reason why the Liberals have remained a fringe party since 2018.

To stare down the ghosts of the Liberal Party’s past, Crombie should lay out a plan to use future surpluses to get the debt down and add a line item to the provincial budget that goes toward debt repayment. If Ford won’t be fiscally responsible, Crombie should promise to fill the vacuum.

Affordability is the number one priority for taxpayers. And the Ontario government is simply unaffordable. It spends too much and that means tax bills are too high. Crombie needs to make the case that she cares about making life more affordable for taxpayers.

Jay Goldberg is the Ontario Director of the Canadian Taxpayers Federation 

 

The views, opinions and positions expressed by columnists and contributors are the author’s alone. They do not inherently or expressly reflect the views, opinions and/or positions of our publication.


Toronto politicians have been on a spending binge for years. Instead of forcing them to reckon with the massive debt load they’ve racked up, Ontario Premier Doug Ford caved and bailed them out like a parent paying down a reckless teenager’s credit card bill.

The so-called “new deal” announced by Ford and Toronto Mayor Olivia Chow includes $1.2 billion over three years to help the city tackle its budget deficit.

Ford’s Toronto bailout won’t solve all of the city’s problems. Before Kris Kringle from Queen’s Park came along, Toronto was facing a deficit of $1.5 billion. Thanks to Ford’s bailout, that deficit should fall to about $1 billion.

But Chow still has to come up with $1 billion. The city plans to spend much more than it brings in this year, but cities in Ontario aren’t allowed to run operating deficits. They can borrow money, but only for capital projects.

Step two in Chow’s bailout plan appears to be making a pilgrimage to Ottawa to beg for more cash.

But here’s the cold hard truth: neither Queen’s Park nor Ottawa should be bailing Toronto out of this mess. The city created it and the city should have to deal with it.

Both the province and the federal government are currently running budget deficits. They should be getting their own fiscal houses in order and encourage Toronto to do the same.

It’s worth exploring how Toronto actually got itself into this mess.

Let’s take a stroll down memory lane.

In the last budget passed under former mayor Rob Ford in 2014, the city of Toronto had a spending budget of $9.6 billion.

Then along came John Tory.

During Tory’s nine years as mayor, Toronto’s budget increased by $6.5 billion.

If Tory and his allies on city council had simply kept spending growth in line with inflation, Toronto’s budget this year would be $4 billion less than it is.

Instead of facing a deficit of more than $1 billion, Toronto would have a massive surplus.

Even when population growth is added to the mix, Toronto is overspending by billions of dollars this year.

The numbers are clear: Toronto is in this mess because city hall spent away every last dollar it had. No money was ever set aside for a rainy day.

Toronto doesn’t have a revenue problem. It has a spending problem.

That’s why Chow needs to immediately do a top-to-bottom review of every line item in the city’s budget and reduce government spending.

It’s also worth remembering the money Ford is handing over to Chow didn’t just fall from the sky. It comes out of the pockets of taxpayers all across the province.

Ford isn’t giving Windsor a special cash infusion. London isn’t getting an early Christmas present. Sudbury isn’t getting Ford bucks.

Why should taxpayers from everywhere else in Ontario have to bail Toronto out from a mess of its own making?

During his press conference with Chow, Ford tried to justify his bailout by claiming Toronto plays a special role as the economic engine of the province.

That may be true. But Toronto has been the economic engine of the province for decades. It hasn’t needed a special billion-dollar bailout package until now.

Ford is helping Toronto city hall avoid reckoning with its own mistakes.

Every parent eventually learns the lesson Ford will surely face down the line: if you pay down your kid’s credit card bill without any consequences, the situation is bound to occur again.

Chow wants to spend billions of dollars more than the city is spending today. Most of city council seems willing to do just that.

Ford shouldn’t be surprised if he finds himself back in this very same situation a few years down the road.

Bailouts without consequences are sure to bear repeating.

Jay Goldberg is the Ontario Director of the Canadian Taxpayers Federation

 

The views, opinions and positions expressed by columnists and contributors are the author’s alone. They do not inherently or expressly reflect the views, opinions and/or positions of our publication.