As Donald Trump triples down on his economic war against Canada, one of the things that inspires the most hope is the vociferous and passionate response of Canadians. We’re boycotting US products, we’re abandoning trips to the US (flight bookings from Canada to the US are down 70%), and finding other ways of making our feelings known.
In a period of polarization and negativity in politics, the country is virtually united in fierce and righteous anger at our country’s closest ally and economic and military partner transforming itself into our greatest enemy.
Unfortunately, it’s a moment that our political class seems unwilling to meet.
Sure, there’s tough ‘retaliatory’ talk. But our political leaders seem to think this is just a bump in the road and that we’ll soon return to normal relations with America. As I’ve written recently, there’s no going back. Not only is America no longer a friend, it is no longer a democracy.
Despite Canadians’ instinctive recognition that the threat to our sovereignty and well being is grave and serious, instead of being asked to prepare to sacrifice and come together to fight a generational battle for freedom, what are our political leaders offering us? Income tax breaks.
Yes, the federal election campaign is still young, but the dominant theme so far from the three major parties - Conservatives, Liberals, and even the NDP - is that they’ll lower income taxes.
[Image credit: Mike Moffatt]
The political incentives at work are obvious. The cost of living has been the dominant electoral frame for several years now, after a period of nasty inflation coupled with the ongoing housing crisis. And in a hugely important election, who wants to be the lone political party warning of the economic calamity being imposed on us and doing things to raise government revenue instead of offering Canadians a break? After all, a couple hundred dollars month extra in the bank is meaningful to a lot of people.
The problem is that income tax cuts are meaningless if people lose their jobs, face months- or years-long waiting lists for medical care, or entire sectors of the economy are wiped out by the criminal occupying the White House.
What Canadians need right now are leaders who recognize that war-like effort needs to be demanded of us. We need to structurally shift our country and economy away from the authoritarian hell scape to our south all while weathering its economic attacks on our country. This requires massive investment, including: 1) supports for workers and sectors hit hard by Trump’s tariffs, akin to the financial measures the federal government brought in during the pandemic, 2) infrastructure investments to move more and more goods to the ports on the eastern and western shores, 3) investments in housing, research and development, and universities to attract talent that is currently seeking to escape America, 4) investments to develop domestic industries in crucial areas of vulnerability, including food, medicine, and manufacturing, 5) war-like investments to rebuild our military and properly equip it, in order to prepare for the very real security and sovereignty threats Trump is making.
Wasting billions on income tax cuts in this context isn’t just a bad idea, it is ruinous. It’s also the opposite of fiscal responsibility. You don’t starve government coffers at a time when generational investments are needed.
Moreover, it’s a wasted political opportunity. Canadians are pissed. They are also scared. They should be.
Our politicians are too accustomed to treating us like idiot children. Our politics incentivize short-term, bad thinking. This election is an opportunity to have an adult conversation for once, and to recognize that sometimes keeping a country requires collective action and sacrifice. We should be talking about ways to raise government revenue, and to find ways to shift government spending to those priority areas (this might include, for example, flattening or even cutting the salaries of over-paid tenured professors in order to better invest in university hiring).
Canadians also need to reserve some of their anger for politicians who are failing in more abject ways to meet the moment.
While Trump attacks Canada, Alberta Premier Danielle Smith has decided to join him, by sowing division, joining far-right lunatic fringe American media, threatening our national unity, and demanding not that Trump stop his attacks but merely that he pause them so her buddy Pierre Poilievre has a better chance at winning power. She is not standing up for Albertans, she is hurting their country, and they should stand up and demand her resignation.
If Canada’s political class won’t lead, Canadians need to demand more from them. I have to believe we’re finally ready for it, because the alternative is there soon won’t be a country worth defending.
I don’t want a tax break. I want someone who will a country united to fight the scurvy that’s upon us. We need to be united instead of the partisan bullshit. Who’s gonna lead us?
Totally agree with what you say, except that the general electorate does act like children. I'm a Permanent Resident of Canada from UK. Most of the Canadian, British and Americans I converse with regularly don't have any real idea of what's going on in politics with any of these countries. They don't take notice of something unless it's going to affect them. The apathy, especially with Americans, is astounding. But it is what it is, so if they hear they are going to be taxed a little less that might get there attention and might vote accordingly. As Michael Guy commented, the job is to get elected first then deal with the real issues - hopefully!