Taxpayer group calls for Carney to cut the cord on CBC, Senate, past GGs

PENTICTON, B.C. — Canada’s leading taxpayers’ watchdog is calling on the Carney government to make about $60-billion in annual spending cuts, including the end of taxpayer support for corporations, the CBC, the Senate and expense accounts for past governors general.

In its pre-budget recommendations to the federal government, the Canadian Taxpayers Federation (CTF) also calls for slashing the costs of the federal bureaucracy and Parliament itself as part of a plan to make government more affordable and to reduce the costs of the fast-growing federal debt.

“The massive accumulation of debt is due to a government spending problem, not revenue problem,” the CTF’s submission states.

The document, obtained by National Post, is to be released later this month. The non-profit’s roster of recommendations marks one of the boldest pre-budget submissions to date.

The CTF’s suggested plan also includes (with projected annual savings where available) cutting the government’s planned high-speed rail project, campaign reimbursements for political parties and candidates ($85 million) and the corporate carbon tax.

It also recommends returning salaries and benefits for federal politicians to 2020 levels, cutting pensions for new MPs and second pension for prime ministers, and budgets for governor generals and their offices, down by 50 per cent, including reducing the GG’s salary to that of cabinet ministers ($264,000). It would also cut tax credits for political contributions ($35 million)

The CTF plan also calls for the public service to be cut to pre-2020 levels, plus inflation ($16 billion), to cut consultants, contractors and other outsourcing to 2015-16 levels, plus inflation ($16 billion), along with regional development agencies ($1.9 billion) and to cut crown corporations, down by 25 per cent ($3 billion). That would include ending subsidies for Canada Post, Via Rail and Telefilm Canada. It would also include a reduction in spending on that National Capital Commission by half.

The CTF also proposes new legislation to protect taxpayers against future taxes.

The Carney government’s second budget is expected to be released within the next couple of months.

The government is trying to achieve a delicate push-and-pull where it increases spending, particularly on infrastructure, defence and other priority items, while making the economy more competitive through tax cuts and other efforts to boost growth and investment.

As Prime Minister Mark Carney meets this week with international investors in Toronto to try to spark more interest in the Canadian economy, sky-high federal deficits, and the accumulated debt, are adding extra pressure on the government to cut costs.

In its spring economic update, the government said it expected to post a deficit of $66.9 billion for the past year, slightly less than expected, due to improved fiscal outcomes.

But Ottawa’s fiscal situation remains grim. The federal government has now accumulated $1.27-trillion in total debt, almost half of which has been added over the last five years.

Neither Carney nor Finance Minister François-Philippe Champagne has yet to signal the government’s broad goals for its upcoming budget, many economists are calling on the government to focus more sharply on making the economy more competitive and productive by cutting corporate and personal income taxes.

Achieving those goals, which will likely require the government to get behind some of the CTF’s proposed cuts, has become even more important in light of the Trump tariffs that have hit many Canadian exporters.

The Liberal government might be leaning that way. Even before the trade war with the U.S., the party had vowed to hold a review of the corporate tax system during last year’s federal election campaign. That promise that has not yet been kept, despite a vow to double non-U.S. exports over the next decade.

National Post

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