Why Carney’s “tax cut” still hurts Canadians
As Canadians head into the holidays and start thinking about New Year’s resolutions — saving money, improving their health, getting ahead — Ottawa has plans of its own.In today’s episode of The Fighter, Kris Sims breaks down what actually changes on January 1, as a new slate of federal tax measures quietly takes effect.
Canadian Taxpayers Federation federal director Franco Terrazzano joins the show to walk through the good news, the bad news, and the fine print Canadians need to understand heading into 2026. While Ottawa is touting a modest income tax cut, Franco explains how higher payroll taxes will claw much of that relief back — leaving many workers effectively no better off.
Kris and Franco also examine the carbon tax shake-up. While the consumer carbon tax has been cancelled, the federal government is moving ahead with higher industrial carbon taxes — increases that ultimately raise the cost of fuel, groceries, utilities, and Canadian production. Franco warns that these policies also undermine Canada’s competitiveness, especially as the U.S. imposes no equivalent national industrial carbon tax.
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