Juno News - October 24, 2024


Trudeau POWER GRAB - CRA plans to automatically file your taxes!


Episode Stats


Length

13 minutes

Words per minute

163.86005

Word count

2,251

Sentence count

4


Summary

Summaries generated with gmurro/bart-large-finetuned-filtered-spotify-podcast-summ .

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

Transcript generated with Whisper (turbo).
00:00:00.000 well when your least favorite government agency the CRA obviously tell you that they want to
00:00:08.560 make your life easier and to save you more money by filing taxes on your behalf it's a pretty safe
00:00:15.920 bet to assume that they're not telling you the truth but that is exactly what is happening right
00:00:20.160 now the government is rolling out a pilot project for the CRA to start automatically filing taxes
00:00:28.000 on your behalf and very few people are talking about this except of course the canadian taxpayers
00:00:34.080 federation so joining us now on the faulkner show to break down this outrageous story is franco
00:00:40.000 terrazzano the national director of the canadian taxpayers federation franco thank you so much for
00:00:45.200 joining us hey harrison great to be here with you today so take us through this CRA power grab this
00:00:52.880 attempt by the CRA to file taxes on behalf of canadians why do they want to do that well look
00:00:58.000 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
00:01:03.200 on folks the government has been quietly expanding the CRA's power to calculate and file your taxes
00:01:11.360 automatically okay so at the end of the day they want the CRA expanding the CRA's ability to offer
00:01:17.280 and expand automatic tax filing now that is bad for three main reasons number one the CRA wants to
00:01:25.200 squeeze every penny from you okay number two the CRA is already bad at its current job and number three
00:01:34.080 the CRA is already bloated and you can bet that if the government expands the CRA's power well then
00:01:40.800 they're also expanding the bureaucracy and costs of the CRA the government claims that they're doing
00:01:50.000 this because canadians are missing out on benefits that they could be receiving themselves somehow i
00:01:56.560 don't believe them when they say that franco should i believe the government when they say that they want
00:02:00.640 to give more money to canadians well like first of all let's let's look at this okay so number one um
00:02:07.840 there's already free programs available right so that you do have community volunteer tax clinics
00:02:13.280 that you can go to but if the government wants canadians to be able to keep more of their own
00:02:18.080 money stop taking so much money from us in the first place okay that is the easiest most efficient way
00:02:25.200 for the government to help canadians is just to stop taking so much money in the first place number two
00:02:30.640 simplify the tax code so that you don't need to hire an army of accountants to actually navigate
00:02:36.720 the tax system but it's exactly the opposite what would happen okay because think about the conflict
00:02:43.360 of interest of having the CRA as both the tax collector and the tax filer right so the CRA's job
00:02:51.920 is to squeeze every penny from you but during tax refund time you want to keep as much of your own money
00:02:59.280 as possible right and let's not forget that the government is broke the federal government
00:03:06.480 is more than a trillion dollars in debt so think about it this way right you want to keep as much
00:03:11.600 of your own money the CRA wants to take as much money from you the government is broke so at the end
00:03:17.440 of the day let's not forget two fundamental things your accountant works for you the broke government
00:03:24.800 bureaucrats at the CRA won't so if the government goes through fully with automatic tax filing you can
00:03:32.400 expect that the amount of taxes that you pay will go up so take us through how this works is this going
00:03:39.840 to be a pilot project and if it is what does the timeline look like before the CRA starts filing your taxes
00:03:46.880 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
00:03:52.400 government is quietly expanding the power of the CRA to move towards automatic tax filing so the
00:03:58.800 timeline back in 2020 the government announced that it would introduce free automatic tax filing for
00:04:04.800 simple files in 2023 budget 2023 the government launched um a pilot project and the government is
00:04:12.560 continuing to expand this so do we know exactly when this is going to happen fully for all canadians no
00:04:18.080 we don't and that's why the canadian taxpayers federation is blowing the whistle on this so we
00:04:23.360 can get ahead of it and so that average canadians can push back against the CRA's tax and power grab
00:04:30.240 what is the political response to this are politicians as joining your fight and speaking out against this
00:04:36.000 because just other than a few news articles and the and the content that you and your team are creating i
00:04:42.880 haven't seen much about this at all yeah it's it's really unfortunate that we haven't heard much
00:04:48.160 from actual elected officials because at the end of the day like this is going to mean canadians paying
00:04:53.680 higher taxes and let me give you a concrete example right let's take it away from the chalkboard and the
00:04:58.880 theory and let's go to a concrete example let's look at the british experience with this so in 2010
00:05:06.000 there were 6 million incorrect returns from the british tax agency 6 million and to a surprise of
00:05:14.480 nobody 75 of those incorrect returns were over billing taxpayers right so you might think that this would
00:05:25.520 save you the headache it won't save you the headache it'll just delay it because if you give the CRA
00:05:32.240 the ability to file everyone's taxes well they're inevitably going to make a mistake and you're
00:05:37.200 going to have to like hire accountants to double check the CRA's homework so that the CRA is not
00:05:42.800 over billing you and folks let's not forget that the CRA is already very bad at its job right so when the
00:05:50.800 CRA inevitably messes up your tax refund good luck getting the CRA on the phone right the taxpayer ombudsman
00:05:57.840 person said that they were flooded with complaints about the CRA as complaints about the CRA increased
00:06:03.840 by 45 percent from pre-pandemic levels and then let's talk about the pandemic for a second when the CRA
00:06:12.000 gave covid benefits to hundreds of dead people or people in jail or people not living in the country
00:06:20.720 or to children right so the CRA is already bad at its current job there is no way we should be gave
00:06:27.040 giving the CRA more power and there's definitely no way that we should be giving the CRA more power
00:06:32.800 over our wallets well there's approximately 60 000 CRA personnel if the if the numbers are correct
00:06:40.720 and as you have uh very clearly laid out for us they can't seem to do their jobs properly i would imagine
00:06:47.360 that expanding their own powers to start filing taxes would require more CRA personnel what are we
00:06:53.760 looking at here how how big could the CRA end up getting if this is going to be their new mandate
00:06:59.120 well the CRA is already bloated and expanding the CRA's power means more CRA bureaucrats which means more tax
00:07:07.920 hikes for Canadians to pay for the expanded bureaucracy that is already bloated as you mentioned and this
00:07:14.000 number is correct according to the government's own numbers there's about 60 000 federal bureaucrats in
00:07:20.240 the CRA well for comparison the US's IRS has about 80 000 bureaucrats okay so in Canada there's one tax
00:07:31.920 bureaucrat for every 700 people in the US there's one tax bureaucrat for every 4 000 people so the CRA is
00:07:40.720 already bloated the CRA is already costing Canadians too much money but folks think about how expanding
00:07:47.440 the series power will directly impact you let me give you another concrete example last year the CRA
00:07:54.560 bureaucrats went on strike right during tax season okay well if you expand the CRA's power over your tax
00:08:02.720 returns do you think the CRA striking during tax season is going to increase in likelihood i bet you it will
00:08:11.120 and i bet you it'll give their union bosses more leverage the next time they want to take more of your
00:08:17.200 money during negotiation times how have we ended up in a situation where the public sector bureaucrats are
00:08:26.720 fighting and and and and basically claiming that working in the office three days a week is extremely
00:08:33.360 anti-worker it seems like it'll never it seems like this situation will never resolve itself from the pandemic
00:08:40.720 well look i i do like to be optimistic i do think that they're uh that that our Canada's bureaucracy
00:08:48.240 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
00:08:54.880 government or a future government if they really care about reining in the massive size and cost of
00:09:00.320 government right because since Trudeau became prime minister he has added a hundred and eight thousand
00:09:07.440 federal bureaucrats Harrison that's an increase in the federal bureaucracy of 42 percent in less than a
00:09:15.920 decade more than a hundred thousand bureaucrats so look like you know we've heard mr polyev who all the
00:09:23.520 polls show that he is poised to form the next government he has said that he wants to fix the budget and cut
00:09:28.880 taxes those are great policy um promises but for polyev to be able to deliver and fix the budget and cut
00:09:38.720 taxes his ability to deliver on that promise will be directly tied to his ability to shrink the
00:09:44.960 bureaucracy in Ottawa and it's not just in Ottawa right because i came across a statistic that said close
00:09:50.960 to a quarter of all working Canadians work in the public sector whether they work in municipal level or
00:09:57.200 provincial politics um or the federal government that seems outrageous to me it seems far beyond uh
00:10:04.400 the the the typical uh stat across the world is that what you guys are seeing as well as is Canada
00:10:09.760 an outlier here in the size of our bureaucracy you know i just don't have the data for the rest of the
00:10:14.720 world but what i do know is that we are living through a tale of two canadas where workers in the
00:10:21.600 private sector take it on the chin with higher taxes government regulations we had what how many years
00:10:29.520 of on again off again revolving lockdowns massive inflation largely caused by government tax hikes
00:10:36.640 and money printing and then the other side of the the equation is you have government bureaucrats
00:10:43.760 financially shielded from the pain that people are suffering in the in the private sector right we
00:10:49.200 mentioned the 100 000 additional bureaucrats that trudeau has hired in less than a decade
00:10:54.160 what about the 1 million pay raises trudeau has rubber stamped over the last four years
00:10:59.360 or the more than 1 billion dollars in bonuses the government has rubber stamped since trudeau has been
00:11:05.600 in office all while bureaucratic departments can barely meet half of their own performance targets
00:11:11.120 so what i do know is that we're experiencing a tale of two canadas the makers versus the takers the
00:11:18.320 people who work outside of government for a business in the private sector versus the people
00:11:23.120 who are shielded behind the golden gates of government and funded by the taxpayer one of the most obvious
00:11:31.760 examples of this government waste and this expansion of the public sector i think for many canadians
00:11:37.200 is the size of the cbc for example the amount of money that goes to the cbc and how that has become such
00:11:43.600 a political uh such a major political issue for the conservatives and then for uh the left-wing
00:11:49.680 parties to attack conservatives over from what you guys are seeing uh with your work how has this issue
00:11:56.880 changed the political landscape in canada well i just think more and more people are fed up with how
00:12:03.440 much the cbc is costing us and how they're wasting our tax dollars and let me just give you two examples
00:12:08.240 right the cbc rubber stamping another round of bonuses for 1200 non-union staff and managers
00:12:15.440 and executives right like the cbc has rubber stamped more than 130 million dollars in taxpayer funded
00:12:22.000 bonuses since 2015. a complete waste of money like why are they giving themselves bonuses with our tax
00:12:28.240 dollars number two what about this so-called cbc modernization panel that is costing taxpayers more
00:12:36.080 than 200 000 and that the cbc stacked with ex-cbc employees right like the cbc doesn't need to uh
00:12:45.120 waste a bunch of taxpayers money trying to figure out why the cbc is failing all they have to do is go
00:12:50.720 to any random tim hortons across the country and ask any random person there why the cbc is failing
00:12:56.640 and let me tell you this the only modernization plan that the cbc needs is three words long defund the cbc
00:13:04.720 with that that's a perfect way to finish this interview frango thank you so much for joining
00:13:10.320 us where can canadians find uh the work that the canadian taxpayers federation is doing well please
00:13:16.160 head over to taxpayer.com and i will say a little plug if you are worried about the cra's tax and power
00:13:24.240 grab then hit up our petitions tab taxpayer.com and sign the petition no automatic tax filing
00:13:30.640 franco terrizano thank you very much hey thank you