Opinion Oct 6, 2020 1:39 PM EST

If Trudeau remains in power, massive tax hikes are inevitable

And those tax hikes will hit working class and middle class Canadians.

If Trudeau remains in power, massive tax hikes are inevitable
Spencer Fernando Winnipeg, MB
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Justin Trudeau is one of those people who thinks he’s smarter than everyone else, only because he’s too ignorant to realize otherwise.

As a result, many of his scandals stem from him doing something that is obviously unethical, thinking he can talk his way out of it, and then failing miserably.

So, when we consider how Justin Trudeau said that higher taxes wouldn’t result from his massive spending increases—which are projected to continue beyond the immediate crisis—it’s clear that he thinks we are all stupid.

For example, consider Trudeau saying that the federal government was taking on debt so Canadians wouldn’t have to. While that sounds very nice, the fact is that the government cannot just keep increasing spending and racking up debt without Canadians paying the price.

Remember, the Liberals under Pierre Trudeau massively expanded government, leaving a legacy of debt that impacted Canada for a generation. The Mulroney government struggled to deal with it, and the Liberals under Jean Chretien and Paul Martin (spurred on by the Reform Party pushing for fiscal responsibility) ended up making some drastic cuts to get things under control.

There was a real, measurable impact on Canadians, but it had to be done because our country was at risk of losing our reputation for fiscal stability, and that loss can be devastating.

The problem with debt is that it’s not a problem until it is a problem, and that transition happens rapidly. Ironically, Trudeau’s agenda makes the potential damage to Canadians even worse.

Trudeau has bragged about how the government can "lock in," debt at low interest rates. What this means is that if there is a loss in confidence in Canada’s fiscal reputation, the rise in interest rates will hit Canadians first.

And of course, Canadians already have an extremely high debt load. The Liberals seem unable to realize how everything here is connected. If Canada faces a rise in interest rates, many Canadians will be thrown into terrible circumstances. Government tax revenue will fall.

That will make servicing the debt even more difficult, and any new borrowing will of course have a much higher cost.

Remember, Greece went from being able to borrow at extremely low interest rates to being mired in a brutal debt crisis in a very short period of time.

Things can change quickly. Stability rapidly becomes chaos.

Behind the scenes, many Liberal government officials certainly know this. Which means, they are laying the groundwork for huge tax increases.

Throughout their time in office, the Liberals have repeatedly sought to increase the cost of living and increase taxes on Canadians. They brought in the carbon tax, and now they are imposing the ‘Canadian fuel standard,’ which is simply a second carbon tax on top of the first one.

And with spending and debt surging, the Liberals will turn to taxes again.

And make no mistake, it won’t be a ‘wealth tax’ that they use to bring in the revenue. As we have seen around the world, increasing taxes on the wealthy often backfires as people shift their wealth around, and move away, resulting in less tax revenue.

No, the Liberals will increase taxes on middle class and working class Canadians, extracting money from people who have fewer ways to reduce their tax burden and aren’t able to move out of the country.

On top of all of this, Trudeau is making tax increases more inevitable by supporting anti-growth policies that make it tougher for our economy to expand our way out of rising debt.

So, unless Justin Trudeau is defeated soon, massive tax hikes on middle class and working class Canadians are inevitable, which will be a crippling blow for many of our fellow Citizens.

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