The Fraser Institute has found the policies implemented by Justin Trudeau’s Liberal government since 2015 have deteriorated the economy and affected the wealth of 86% of Canadians. Having conducted an in-depth study of the correlation between Ottawa’s policies, the economy and Canadian’s personal finances, the institute published a scathing summary highlighting how excess spending, carbon taxes and programs have sunk the nation’s economy. The Liberals’ “poor policies (are) responsible for stagnant economy and deteriorating federal finances,” the Fraser Institute wrote, pointing out the policies Trudeau ran on when he was first elected in 2015 are contrary to what he has actually done in the nine years he’s been leader. Trudeau had promised “economic prosperity” to Canadians, especially the younger generation. He said he would lower taxes for most Canadians, would strengthen the middle class and is “committed to a responsible, transparent fiscal plan for challenging economic times.” “We expect you to hold the government accountable for delivering these commitments,” Trudeau wrote in an open letter to Canadians when he was elected. Despite these pledges of prosperity and claims of transparency, Trudeau’s coalition government has led the nation to “economic stagnation and a marked deterioration in the country’s finances,” the Fraser Institute found, calling for “fundamental policy reform.”The federal spending budget in 2014/15 was $256.2 billion. The projected spending budget for 2023/24 is $449.8 billion. This number excludes debt interest costs. The purpose of the massive budget increase was to “expand existing programs and create new programs,” the institute said. Though the Trudeau government reduced the tax rate for middle class income earners, it simultaneously “eliminated several tax credits," leading to 86% of “middle-income families now paying higher personal income taxes.”.The Trudeau administration borrowed in order to finance “new spending,” “triggering a string of budget deficits” that led to a federal gross debt of $1.9 trillion in 2022/23. The debt is projected to reach at least $2.4 trillion by 2027/28 due to interest. “The Trudeau government has produced large increases in government spending, taxes and borrowing, which have not translated into a more robust and vibrant economy,” the institute said. “From 2013 to 2022, growth in per-person GDP, the broadest measure of living standards, was the weakest on record since the 1930s.”In 2016 Ottawa curbed the incentive for entrepreneurs, investors and skilled professionals such as doctors to come to Canada (or stay in Canada) due to an increase in the top personal income tax rate. “Consequently, the combined top personal income tax rate (federal and provincial) now exceeds 50% in eight provinces and the country’s average top combined rate in 2022 ranked fifth-highest among 38 OECD (Organization for Economic Cooperation and Development) countries,” Fraser Institute wrote, explaining the nation “badly needs” these people in order to keep the economy going. Further, Ottawa has “dampened investment by increasing regulatory barriers, particularly in the energy and mining sectors,” with investment declining at a rate of 1.8% annually since 2014. According to the Fraser Institute, to turn things around for Canada’s economy, the federal government must be more prudent about spending, balance the budget, reduce debt and implement more competitive tax rates.
The Fraser Institute has found the policies implemented by Justin Trudeau’s Liberal government since 2015 have deteriorated the economy and affected the wealth of 86% of Canadians. Having conducted an in-depth study of the correlation between Ottawa’s policies, the economy and Canadian’s personal finances, the institute published a scathing summary highlighting how excess spending, carbon taxes and programs have sunk the nation’s economy. The Liberals’ “poor policies (are) responsible for stagnant economy and deteriorating federal finances,” the Fraser Institute wrote, pointing out the policies Trudeau ran on when he was first elected in 2015 are contrary to what he has actually done in the nine years he’s been leader. Trudeau had promised “economic prosperity” to Canadians, especially the younger generation. He said he would lower taxes for most Canadians, would strengthen the middle class and is “committed to a responsible, transparent fiscal plan for challenging economic times.” “We expect you to hold the government accountable for delivering these commitments,” Trudeau wrote in an open letter to Canadians when he was elected. Despite these pledges of prosperity and claims of transparency, Trudeau’s coalition government has led the nation to “economic stagnation and a marked deterioration in the country’s finances,” the Fraser Institute found, calling for “fundamental policy reform.”The federal spending budget in 2014/15 was $256.2 billion. The projected spending budget for 2023/24 is $449.8 billion. This number excludes debt interest costs. The purpose of the massive budget increase was to “expand existing programs and create new programs,” the institute said. Though the Trudeau government reduced the tax rate for middle class income earners, it simultaneously “eliminated several tax credits," leading to 86% of “middle-income families now paying higher personal income taxes.”.The Trudeau administration borrowed in order to finance “new spending,” “triggering a string of budget deficits” that led to a federal gross debt of $1.9 trillion in 2022/23. The debt is projected to reach at least $2.4 trillion by 2027/28 due to interest. “The Trudeau government has produced large increases in government spending, taxes and borrowing, which have not translated into a more robust and vibrant economy,” the institute said. “From 2013 to 2022, growth in per-person GDP, the broadest measure of living standards, was the weakest on record since the 1930s.”In 2016 Ottawa curbed the incentive for entrepreneurs, investors and skilled professionals such as doctors to come to Canada (or stay in Canada) due to an increase in the top personal income tax rate. “Consequently, the combined top personal income tax rate (federal and provincial) now exceeds 50% in eight provinces and the country’s average top combined rate in 2022 ranked fifth-highest among 38 OECD (Organization for Economic Cooperation and Development) countries,” Fraser Institute wrote, explaining the nation “badly needs” these people in order to keep the economy going. Further, Ottawa has “dampened investment by increasing regulatory barriers, particularly in the energy and mining sectors,” with investment declining at a rate of 1.8% annually since 2014. According to the Fraser Institute, to turn things around for Canada’s economy, the federal government must be more prudent about spending, balance the budget, reduce debt and implement more competitive tax rates.
