Juno News - October 24, 2024
Trudeau POWER GRAB - CRA plans to automatically file your taxes!
Episode Stats
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Summary
The government is quietly expanding the CRA's power to calculate and file your taxes automatically, but few people are talking about this except of course, the Canadian Taxpayers Federation. In this episode, we talk to the National Director of the Tax Federation, Franco Terrazzano, about why this is a tax power grab and why it needs to stop.
Transcript
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well when your least favorite government agency the CRA obviously tell you that they want to
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make your life easier and to save you more money by filing taxes on your behalf it's a pretty safe
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bet to assume that they're not telling you the truth but that is exactly what is happening right
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now the government is rolling out a pilot project for the CRA to start automatically filing taxes
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on your behalf and very few people are talking about this except of course the canadian taxpayers
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federation so joining us now on the faulkner show to break down this outrageous story is franco
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terrazzano the national director of the canadian taxpayers federation franco thank you so much for
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joining us hey harrison great to be here with you today so take us through this CRA power grab this
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attempt by the CRA to file taxes on behalf of canadians why do they want to do that well look
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it's it's all about a power grab it's all about a tax grab from canadians and so here's what's going
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on folks the government has been quietly expanding the CRA's power to calculate and file your taxes
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automatically okay so at the end of the day they want the CRA expanding the CRA's ability to offer
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and expand automatic tax filing now that is bad for three main reasons number one the CRA wants to
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squeeze every penny from you okay number two the CRA is already bad at its current job and number three
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the CRA is already bloated and you can bet that if the government expands the CRA's power well then
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they're also expanding the bureaucracy and costs of the CRA the government claims that they're doing
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this because canadians are missing out on benefits that they could be receiving themselves somehow i
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don't believe them when they say that franco should i believe the government when they say that they want
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to give more money to canadians well like first of all let's let's look at this okay so number one um
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there's already free programs available right so that you do have community volunteer tax clinics
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that you can go to but if the government wants canadians to be able to keep more of their own
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money stop taking so much money from us in the first place okay that is the easiest most efficient way
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for the government to help canadians is just to stop taking so much money in the first place number two
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simplify the tax code so that you don't need to hire an army of accountants to actually navigate
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the tax system but it's exactly the opposite what would happen okay because think about the conflict
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of interest of having the CRA as both the tax collector and the tax filer right so the CRA's job
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is to squeeze every penny from you but during tax refund time you want to keep as much of your own money
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as possible right and let's not forget that the government is broke the federal government
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is more than a trillion dollars in debt so think about it this way right you want to keep as much
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of your own money the CRA wants to take as much money from you the government is broke so at the end
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of the day let's not forget two fundamental things your accountant works for you the broke government
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bureaucrats at the CRA won't so if the government goes through fully with automatic tax filing you can
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expect that the amount of taxes that you pay will go up so take us through how this works is this going
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to be a pilot project and if it is what does the timeline look like before the CRA starts filing your taxes
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and you aren't even aware that they're doing it well let me go back to my initial comments right the fact that the
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government is quietly expanding the power of the CRA to move towards automatic tax filing so the
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timeline back in 2020 the government announced that it would introduce free automatic tax filing for
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simple files in 2023 budget 2023 the government launched um a pilot project and the government is
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continuing to expand this so do we know exactly when this is going to happen fully for all canadians no
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we don't and that's why the canadian taxpayers federation is blowing the whistle on this so we
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can get ahead of it and so that average canadians can push back against the CRA's tax and power grab
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what is the political response to this are politicians as joining your fight and speaking out against this
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because just other than a few news articles and the and the content that you and your team are creating i
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haven't seen much about this at all yeah it's it's really unfortunate that we haven't heard much
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from actual elected officials because at the end of the day like this is going to mean canadians paying
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higher taxes and let me give you a concrete example right let's take it away from the chalkboard and the
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theory and let's go to a concrete example let's look at the british experience with this so in 2010
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there were 6 million incorrect returns from the british tax agency 6 million and to a surprise of
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nobody 75 of those incorrect returns were over billing taxpayers right so you might think that this would
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save you the headache it won't save you the headache it'll just delay it because if you give the CRA
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the ability to file everyone's taxes well they're inevitably going to make a mistake and you're
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going to have to like hire accountants to double check the CRA's homework so that the CRA is not
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over billing you and folks let's not forget that the CRA is already very bad at its job right so when the
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CRA inevitably messes up your tax refund good luck getting the CRA on the phone right the taxpayer ombudsman
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person said that they were flooded with complaints about the CRA as complaints about the CRA increased
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by 45 percent from pre-pandemic levels and then let's talk about the pandemic for a second when the CRA
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gave covid benefits to hundreds of dead people or people in jail or people not living in the country
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or to children right so the CRA is already bad at its current job there is no way we should be gave
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giving the CRA more power and there's definitely no way that we should be giving the CRA more power
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over our wallets well there's approximately 60 000 CRA personnel if the if the numbers are correct
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and as you have uh very clearly laid out for us they can't seem to do their jobs properly i would imagine
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that expanding their own powers to start filing taxes would require more CRA personnel what are we
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looking at here how how big could the CRA end up getting if this is going to be their new mandate
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well the CRA is already bloated and expanding the CRA's power means more CRA bureaucrats which means more tax
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hikes for Canadians to pay for the expanded bureaucracy that is already bloated as you mentioned and this
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number is correct according to the government's own numbers there's about 60 000 federal bureaucrats in
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the CRA well for comparison the US's IRS has about 80 000 bureaucrats okay so in Canada there's one tax
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bureaucrat for every 700 people in the US there's one tax bureaucrat for every 4 000 people so the CRA is
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already bloated the CRA is already costing Canadians too much money but folks think about how expanding
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the series power will directly impact you let me give you another concrete example last year the CRA
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bureaucrats went on strike right during tax season okay well if you expand the CRA's power over your tax
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returns do you think the CRA striking during tax season is going to increase in likelihood i bet you it will
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and i bet you it'll give their union bosses more leverage the next time they want to take more of your
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money during negotiation times how have we ended up in a situation where the public sector bureaucrats are
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fighting and and and and basically claiming that working in the office three days a week is extremely
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anti-worker it seems like it'll never it seems like this situation will never resolve itself from the pandemic
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well look i i do like to be optimistic i do think that they're uh that that our Canada's bureaucracy
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isn't too far gone just yet but like let's not kid ourselves there is a lot of work to be done for this
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government or a future government if they really care about reining in the massive size and cost of
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government right because since Trudeau became prime minister he has added a hundred and eight thousand
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federal bureaucrats Harrison that's an increase in the federal bureaucracy of 42 percent in less than a
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decade more than a hundred thousand bureaucrats so look like you know we've heard mr polyev who all the
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polls show that he is poised to form the next government he has said that he wants to fix the budget and cut
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taxes those are great policy um promises but for polyev to be able to deliver and fix the budget and cut
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taxes his ability to deliver on that promise will be directly tied to his ability to shrink the
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bureaucracy in Ottawa and it's not just in Ottawa right because i came across a statistic that said close
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to a quarter of all working Canadians work in the public sector whether they work in municipal level or
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provincial politics um or the federal government that seems outrageous to me it seems far beyond uh
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the the the typical uh stat across the world is that what you guys are seeing as well as is Canada
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an outlier here in the size of our bureaucracy you know i just don't have the data for the rest of the
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world but what i do know is that we are living through a tale of two canadas where workers in the
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private sector take it on the chin with higher taxes government regulations we had what how many years
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of on again off again revolving lockdowns massive inflation largely caused by government tax hikes
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and money printing and then the other side of the the equation is you have government bureaucrats
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financially shielded from the pain that people are suffering in the in the private sector right we
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mentioned the 100 000 additional bureaucrats that trudeau has hired in less than a decade
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what about the 1 million pay raises trudeau has rubber stamped over the last four years
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or the more than 1 billion dollars in bonuses the government has rubber stamped since trudeau has been
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in office all while bureaucratic departments can barely meet half of their own performance targets
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so what i do know is that we're experiencing a tale of two canadas the makers versus the takers the
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people who work outside of government for a business in the private sector versus the people
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who are shielded behind the golden gates of government and funded by the taxpayer one of the most obvious
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examples of this government waste and this expansion of the public sector i think for many canadians
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is the size of the cbc for example the amount of money that goes to the cbc and how that has become such
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a political uh such a major political issue for the conservatives and then for uh the left-wing
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parties to attack conservatives over from what you guys are seeing uh with your work how has this issue
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changed the political landscape in canada well i just think more and more people are fed up with how
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much the cbc is costing us and how they're wasting our tax dollars and let me just give you two examples
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right the cbc rubber stamping another round of bonuses for 1200 non-union staff and managers
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and executives right like the cbc has rubber stamped more than 130 million dollars in taxpayer funded
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bonuses since 2015. a complete waste of money like why are they giving themselves bonuses with our tax
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dollars number two what about this so-called cbc modernization panel that is costing taxpayers more
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than 200 000 and that the cbc stacked with ex-cbc employees right like the cbc doesn't need to uh
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waste a bunch of taxpayers money trying to figure out why the cbc is failing all they have to do is go
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to any random tim hortons across the country and ask any random person there why the cbc is failing
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and let me tell you this the only modernization plan that the cbc needs is three words long defund the cbc
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with that that's a perfect way to finish this interview frango thank you so much for joining
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us where can canadians find uh the work that the canadian taxpayers federation is doing well please
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head over to taxpayer.com and i will say a little plug if you are worried about the cra's tax and power
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grab then hit up our petitions tab taxpayer.com and sign the petition no automatic tax filing
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franco terrizano thank you very much hey thank you