Juno News - August 03, 2026


Carney BACKS DOWN on ‘Netflix tax’ under U.S. pressure


Episode Stats


Length

15 minutes

Words per minute

181.41

Word count

2,829

Sentence count

107


Transcript

Transcript generated with Whisper (turbo).
00:00:00.000 Well, Prime Minister Carney has once again caved under pressure from the Trump administration
00:00:10.260 and scrapped the idea of taxing the U.S. streaming giants like Netflix.
00:00:16.180 This post by Canada Proud, when the Liberals brought in the Online Streaming Act that included
00:00:23.020 a 5% tax on streamers to fund Canadian content.
00:00:28.140 They then raised the tax to 15%.
00:00:31.180 Now, due to pressure from Trump,
00:00:33.540 Mark Carney has reduced the tax to 0%
00:00:36.380 and declared that your taxes will be used to replace it.
00:00:41.580 The Carney government now intends to spend
00:00:44.040 another $600 million in annual funding
00:00:47.020 for Canadian content producers.
00:00:49.260 Our guest today is Franco Terrizano,
00:00:51.360 federal director of the CTF, the Canadian Taxpayers Federation. Welcome, Franco.
00:00:56.280 Hey, Mark. Thanks for having me on the show.
00:00:59.180 Yeah, well, there's always good reasons to have you on the show. The latest, and you've been
00:01:02.800 talking a little bit about this, is the prime minister deciding under pressure from the Trump
00:01:08.280 administration to scrap the idea of taxing these U.S. streaming giants like Netflix. These are
00:01:15.000 trillion-dollar companies in some cases. And I guess the CRTC upped the tax from 5% to 15%.
00:01:23.500 There's all sorts of talk about that. Obviously, they got some pushback from the Trump administration,
00:01:28.880 and lo and behold, the Kearney government says, you know what, forget it. We'll just
00:01:33.160 levy an extra, what, $600 million or so on the backs of the taxpayers. What do you make of this?
00:01:40.760 Yeah, well, look, let me just start by saying, regardless of whoever's in the administration
00:01:44.540 or in the White House in the United States,
00:01:46.840 this streaming tax should have never been brought in
00:01:49.360 in the first place here in Canada, right?
00:01:50.940 I think it was the CRTC made the original announcement
00:01:54.080 all the way back in 2024 under Trudeau.
00:01:57.040 Just recently, they ended up tripling the streaming tax
00:02:00.240 to what, like 15%, right?
00:02:01.900 Making it more expensive for you to watch Netflix
00:02:04.440 after a hard day of work.
00:02:05.900 And like Canadians are already squeezed.
00:02:07.960 And at the end of the day, what a streaming tax means,
00:02:10.100 it means it's just more expensive for you
00:02:12.080 to watch or stream your favorite movies or TV shows, right?
00:02:14.900 So this should have never been brought in the first place, right?
00:02:18.200 Just government's always looking for ways to take more money
00:02:21.160 or to increase prices for Canadians.
00:02:23.180 So look, I'm glad that the streaming tax is gone.
00:02:26.700 As I said, it should have never been brought in the first place.
00:02:29.060 And regardless of whoever's in the White House,
00:02:30.980 whatever they think, we should be making life in Canada more expensive.
00:02:35.180 Now, on your question about subsidies,
00:02:37.740 taxpayers shouldn't be footing the bill, right?
00:02:39.820 like the government shouldn't be wasting that type of money so the streaming tax should be gone
00:02:44.160 and there should uh the taxpayers shouldn't be forced to be picking up the subsidies
00:02:47.600 yeah the government the crtc they're obsessed with funding content they love it they they know
00:02:56.260 that politics is downstream from culture and so you have to have millions if not tens of millions
00:03:03.460 and hundreds of millions going into the production of content by let's face it a lot of left-wing
00:03:09.300 content producers out there. That's the type of person they love to fund. And so just get as much
00:03:15.880 content out there that encourages the type of government that these people happen to be running.
00:03:21.400 That's my own personal opinion on it for what it's worth. But at the end of the day, it's the
00:03:25.560 taxpayers that are getting hosed here. But it shows, again, an unwillingness by the Carney
00:03:31.580 government to stand their ground on matters involving the Trump administration. All we heard
00:03:38.660 was elbows up. All we heard was how we have got to stand up to the Americans. And time and time
00:03:45.280 again, they have caved. There was another digital tax bill, I believe, that they, a piece of
00:03:52.500 legislation that they caved on. They caved on the Gordie Howe Bridge most recently, where you saw
00:03:58.440 what happened, you know, under pressure. They then relinquished 50% of the revenues coming from the
00:04:06.260 tolls of that bridge. We were lied to as the public by the prime minister suggesting, oh, no,
00:04:13.400 you know, the debt's going to be paid off first, the $6.4 billion that we spent on building this
00:04:19.300 thing. And then we find out, no, that in fact, that debt does not have to be paid first, that
00:04:25.160 we're going to have to pay the debt with the 50% of the revenues that we get from the tolls while
00:04:31.020 the americans or while the americans get their 50 so all of this suggests that the the carny
00:04:38.440 government is big on talk when it comes to standing up to the americans but push come to shove they
00:04:44.180 back off what do you think well you know mark um look i i take your point and i think you might
00:04:49.300 have one in terms of accountability right just when a politician runs on one thing and then they
00:04:53.940 do another thing but you know let me split this issue into two because i think there's a difference
00:04:58.660 between what happened with the Gordie Howe Bridge and what is happening with the digital
00:05:02.520 services tax previously and now the online streaming tax, right? So on the Gordie Howe
00:05:07.620 Bridge, I mean, clearly the new deal is worse for Canadian taxpayers, right? Clearly that
00:05:13.980 concession is worse than the previous deal or what the Canadian public had been told
00:05:18.640 previously, right? Because Canadian taxpayers paid for the construction of the bridge just
00:05:23.440 north of $6 billion. We're supposed to be getting that money back to recoup those costs,
00:05:27.720 right? And clearly the new deal, although it's still muddy, clearly the new deal means that
00:05:33.620 it's going to take more time for Canadian taxpayers to recoup that money, right? That's
00:05:38.120 what everybody is saying based on all the facts that have been released, albeit it seems like
00:05:43.340 there's a lot of mud still left in the water. So the Gordie Howe bridge deal obviously seems worse
00:05:48.540 than what Canadians were sold years and years ago, okay? However, on the online streaming tax,
00:05:54.200 on getting rid of the digital services tax. Those are good things, right? Like now I get that there
00:06:01.180 is a, you know, this tariff dispute going on to say the least, but getting rid of the digital
00:06:07.000 services tax, getting rid of the online streaming tax, those are both good, right? Both of those
00:06:12.320 would hurt our economy and would make life more expensive, right? These types of taxes on
00:06:17.480 businesses, they deter investment and they mean higher prices for Canadian consumers. So I think
00:06:22.660 we do have to split the Gordie Howe Bridge and also the removing of these other taxes because
00:06:29.020 the deal on the Gordie Howe Bridge, obviously it looks worse for taxpayers, okay? But getting rid
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00:07:37.320 Unsmoke for sponsoring this episode. The $600 million in funding that they're going to have
00:07:43.000 to take out of the back pockets of the pockets of taxpayers, that's not a good thing. Agreed.
00:07:48.700 So, I mean, when they were handed the decision of what to do here, what they should have said was, I agree.
00:07:57.860 Okay, cancel it, nix the tax, you know, means that some of these content producers, artists, whatever, are going to get less money, you know, than we otherwise would have given them.
00:08:07.000 But they're not. They're still getting a ton of cash, $600 million, but they're just taking it out of all taxpayers, out of the general revenues, tax revenues of the country.
00:08:18.700 i mean the other way it would have been users so if you use these streaming services then you pay
00:08:24.860 would have been user pay and as much as i hate these taxes because i do use these services as
00:08:30.380 well albeit in the united states but canadians um it's a tough it's a tough way to go but you know
00:08:39.740 mark there's a third option here there's a third option here right get rid of the online streaming
00:08:44.700 tax and get rid of the subsidies, right? That's what should have happened, right? Like, it's not
00:08:49.620 like they, they, they had to keep the subsidies in place, right? Like we're forgetting the third
00:08:54.700 option, which is the correct option is get rid of the tax and stop forcing Canadian taxpayers to
00:09:00.500 pay for stuff they don't want to pay for. Right. And like, come on folks, like, like if you're an
00:09:05.180 artist, if you're producing these, you know, uh, Canadian content programming, whatever you can
00:09:10.440 make money and you can make lots of money if you're producing stuff that people actually want
00:09:15.660 to voluntarily pay for, right? Let's stop forcing taxpayers taking money from some people that is
00:09:22.960 not voluntary and forcing them to subsidize content that they don't want to pay for. Okay.
00:09:27.840 So like, look, I think Mark, I think a lot, uh, what I think we're saying pretty much the same
00:09:32.180 thing. The only thing I'll add is that there was a third option, get rid of the tax, get rid of the
00:09:36.860 subsidies and that's what should have happened and of course we also have the media subsidies
00:09:40.740 right and i know i don't know if that is part of this or not i don't think it is
00:09:45.680 but of course we've seen hundreds of millions of dollars go to fund media right and i've seen
00:09:51.940 some of these uh organizations like the toronto star and so forth going cap in hand to the
00:09:57.360 government saying make sure that you keep these huge subsidies because currently i believe it's
00:10:02.260 like $30,000 per reporter. That's the subsidy for some of these news organizations. You know,
00:10:09.360 without that, a lot of them wouldn't be in big trouble. And there's talk of cutting that down
00:10:13.520 somewhat, I think to what, 15 or somewhere, somewhere like that. And so they should cut
00:10:18.320 it down to zero. They should absolutely cut it down to zero, but this is the problem, right?
00:10:24.160 Once they're hooked on the crack cocaine of these subsidies, it's going to be very, very hard for
00:10:29.260 these companies to give that up in fact it might might be impossible some of them may end up going
00:10:34.560 under we just saw a huge number of layoffs over at global and that's with the subsidies you know
00:10:40.880 what i mean you know what i mean and i think that's brings us to the question like did it even
00:10:45.100 work right uh it cost taxpayers a whole bunch of money did it even work i think the answer
00:10:49.400 is no and look whenever you whenever just because something is the hard thing to do
00:10:54.520 it doesn't mean it's not the right thing to do. Right. And even for the ecosystem that is
00:10:59.500 journalism, I mean, look, Mark, look what we're talking on right now, right on Juno news. Like
00:11:03.880 there, there'll be new innovation when the government takes away the subsidies. Now,
00:11:08.840 what is that going to look like? I don't know. I don't think anyone knows. We just kind of have
00:11:12.500 to see how it happens, but you know, people still want to get the news as you can see from the
00:11:17.360 conversation that you and I are having right now, but I'm glad you brought up the media subsidies,
00:11:22.220 right? Whether it's the media subsidies that were announced under Trudeau and continued through
00:11:26.280 Carney, or whether it's just the $1 billion a year elephant in the room. Of course, you know,
00:11:32.480 I'm talking about the state broadcaster, right? And, you know, I see a couple issues with
00:11:38.060 taxpayers being forced to subsidize media corporations. Number one, people should just
00:11:43.520 be able to voluntarily choose which type of media outlets they want to support with their own money,
00:11:48.260 right? We shouldn't be forced to do that as taxpayers. Number two, it's also unfair for
00:11:53.400 other news, independent news competitors to have their tax dollars going to fund their competitors,
00:12:00.720 right? That's also completely unfair. But I also think even just the perception of bias reduces
00:12:07.500 democratic accountability, right? Like a news organization that takes taxpayers money, they
00:12:12.980 might be biased, they might not be biased, but there's certainly a perception of bias, right?
00:12:17.620 i don't think you can say that that's not true there's certainly a perception that someone's
00:12:21.780 not going to bite the hand that feeds them well i'm sure it's more than just a perception and
00:12:27.400 it's a mutual dependency here now it's not just that the media organizations are dependent on
00:12:32.280 government cash in order to perpetuate their existence the government has become dependent
00:12:37.400 on the legacy media to perpetuate their message to push whatever narrative they want pushed out
00:12:43.260 there because they know that they're getting a very different set of stories and approaches to
00:12:49.280 news from organizations like Juno and others that do not take government money. And so that's
00:12:56.660 what's going on here. They're using tax dollars to perpetuate each other. The government is using
00:13:03.320 the legacy media to push its message and to push its biases under the guise of news. And these
00:13:12.040 news organizations are using the government money just to stay afloat and to your point that even
00:13:18.680 that may not be enough and they should have figured that out from the start as soon as you
00:13:23.560 go down the road of government subsidies for these news organizations that dependency is never going
00:13:28.840 to end there is there's not going to be a day when these companies say okay we don't need the money
00:13:33.960 anymore we're fine we're good we're making all sorts of money now that you know their business
00:13:39.000 model is dead. And somehow the government thinks it's important to perpetuate these
00:13:45.160 dying business models ad infinitum. Last word to you. Well, what's next, right? Subsidies for
00:13:51.460 Blockbuster, right? I don't know what to say, right? You know what I mean? Like, look, whether
00:13:55.860 it's a media organization, whether it's another type of business, obviously I mentioned the joke
00:14:01.440 of Blockbuster, right? We shouldn't be having taxpayers subsidizing any form of corporation,
00:14:07.140 right like i think we just got to call a spade a spade or i think we just got to say like what it
00:14:11.780 is right it's it's corporate welfare that's that's what it is um look i'm against all these subsidies
00:14:17.660 but i think to to speak about what we're talking about today i think the real point is the digital
00:14:22.880 services tax the online streaming tax they should have never brought in in the first place they
00:14:27.080 would make life more expensive it's good that they're gone but there is an option three which
00:14:32.460 is get rid of the online streaming tax and get rid of the taxpayer subsidies yeah sadly these
00:14:38.020 taxpayer subsidies are not going anywhere i mean these artists have been getting it for decades
00:14:43.140 you know they used to take it from the uh the cable companies and you know these you know the
00:14:49.720 bell medias of the world um you know talus's and all these other companies they used to take that
00:14:55.400 money from those companies and bundle it into the arts you know but you know some of these companies
00:15:01.660 are not making as much money
00:15:02.720 as they used to.
00:15:03.900 And so they got to,
00:15:04.640 now they're right back
00:15:05.760 to taking it right out of,
00:15:07.040 straight from government revenues.
00:15:08.880 Thank you so much
00:15:09.620 for coming on the show, Frank.
00:15:10.720 We appreciate it.
00:15:11.900 Hey, I appreciate you.
00:15:12.940 Thank you.
00:15:13.960 Franco Terzano
00:15:14.820 is federal director of the CTF,
00:15:18.260 the Canadian Taxpayers Federation.
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