Every Canadian now owes $56,000 in government debt • Troy Media
Fifty-six thousand dollars. This is the average amount each Canadian will owe provincial and federal government debt by the end of the year.
Much of this debt will likely fall on the backs of the children and grandchildren of Canadians. As columnist Chris Nelson warns, “we are no longer being bribed with our own money. We are bribed with money from our great-grandchildren.
But debt is not just a problem for tomorrow; it’s impacting Canadians right now.
First, politicians are already raising taxes to pay for their deficit spending.
Despite promising In order not to tax its deficits, the Trudeau government recently increased the tax on carbon, alcohol and payroll taxes. If you do over $40,000 then your federal tax bill will increase this year.
Trudeau’s two pandemic budgets also contain a series of new taxes such as taxes on luxury goods, a tax on foreigners who own vacant homes, an anti-rollover tax and higher taxes on banks and companies. insurance which increases costs. If the Trudeau government didn’t borrow so much money, it would have more leeway to cut taxes to mitigate the rising cost of living.
Then there are the new taxes that politicians and bureaucrats are thinking about.
A report from the Ministry of the Environment includes a recommendation for a new truck tax it could cost between $1,000 and $4,000 per vehicle. Trudeau asked for a analysis of a possible wealth tax to explore the “merit of politics”. The government has spent hundreds of thousands of dollars on a study that recommends a new home equity tax, while Trudeau staff met twice with the group that received federal funding to study the tax.
Taxpayers should also be concerned about the deal between the federal Liberals and the New Democrats. The NDP promised raise almost every tax under the sun in the last election, including raising income taxes, business taxes, and capital gains taxes, as well as imposing a wealth tax , an excess profit tax, a luxury tax and a foreign buyers tax.
Public debt also directly fuels inflation when the federal government uses the printing press to finance deficits. This is because the more dollars the central bank prints, the less your dollars buy. During the pandemic, the central bank printed more than 300 billion dollars out of nowhere by buying federal government debt.
More borrowing also means more money wasted on interest charges. This year, interest charges on federal and provincial government debt will cost every Canadian more than $1,000. It’s money that can’t stay in the pockets of Canadians to ease the pain of inflation because it’s going to Bay Street bond fund managers.
When politicians aren’t forced to balance the budget, they’re less likely to put every spending penny under the microscope. Of $11 million spent renovate the prime minister’s country retreat to spend $8,800 on a sex toy show in Germany, $80,000 on plane food during a week-long trip and giving $295 million at the Ford Motor Company, the federal government is wasting a lot of money that would be better spent on overtaxed Canadians.
The first step to reducing the government debt bill is to balance the budget, as the governments of New Brunswick and Alberta have done. Trudeau could balance the federal budget by 2024 bringing spending back to pre-pandemic levels, adjusted upward for inflation and population growth. And Trudeau was already spending all-time highs before the pandemic.
Canadians do not have tens of thousands of dollars lying around to pay their politicians’ credit card bills. Politicians need to find savings before taxpayers get run over.
Franco Terrazzano is the Federal Director of the Canadian Taxpayers Federation.
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