moved:
That, given that,
(i) the Liberal-appointed CRTC recently ordered online streaming services to pay 15% of their annual Canadian revenues to the government, up from the current 5%,
(ii) this tax increase will be passed on to consumers who are already struggling with the rising cost of living,
(iii) the tax will discourage business activity and investment in Canada,
(iv) the tax is a trade irritant with the United States ahead of the upcoming CUSMA review,
the House call on the Liberal Cabinet to use their powers under the Broadcasting Act to reject the CRTC’s streaming tax increase and eliminate the streaming tax.
Madam Speaker, I wish to split my time with the member for Elgin—St. Thomas—London South.
After 11 years of the Liberal government, Canadians are paying more for just about everything. They are paying more for groceries, gas, housing, electricity and, now, simply watching their favourite show or listening to their favourite music. Just last week, the Liberal-appointed CRTC announced plans to triple the streaming tax, taking it from 5% to 15% on online streaming services such as Netflix, Spotify and Disney+.
This question must be asked: Who will pay for this? The answer is that it will not be government, the CRTC bureaucrats or the Liberal ministers sitting across the way. Instead, it will be everyday, hard-working Canadians who will foot the bill. Every dollar of this tax will ultimately be passed on to consumers, who are already struggling under the weight of rising costs under current government policy.
In fact, Canadians are already seeing the impact. Just a few days ago, Spotify notified subscribers that they would see an increase in their rates coming into effect in July. A few extra dollars here and there may not be that much to those across the way, but for Canadians who are working hard, skimping and saving, and trying to make ends meet, those dollars matter.
Canadians should not be forced into a false choice between affordability and a few small pleasures in life. Families should be able to afford the essentials, such as food, clothing and shelter, while still being able to enjoy a few of those tiny comforts. After a decade of Liberal policies, affordability in Canada has only gotten worse, and this streaming tax is simply the latest Liberal attack on affordability.
What makes this even harder for Canadians to accept is the growing disconnect between what ordinary Canadians are experiencing and what they see from those in positions of power. Recently released invoices show that the Prime Minister spent nearly $200,000 just on inflight food in one year. On one trip alone to Rome, taxpayers were billed almost $94,000 for meals in the air. What did these meals include? They included things like beef tenderloin, salmon, crème brûlée and fine wines.
For many Canadian families, the majority actually, $94,000 would cover groceries for years, not just a few small meals. It is ludicrous. It is completely out of touch with Canadians. While families are deciding whether or not they can afford a few extra dollars on their Spotify account, the Prime Minister is spending $94,000, of taxpayer money I should add, on meals for one trip.
The Liberals tell Canadians that the solution is to simply consume less. The former finance minister suggested that Canadians cancel their Disney+ account, for example, so they could save those few extra dollars each month to make ends meet. Meanwhile, the Prime Minister spent $94,000 on inflight meals for one trip. The irony here is impossible to miss.
This decision is not only wrong with respect to affordability, but also wrong economically. It is wrong for investment and for Canada's future. That 15% tax puts Canada among the most expensive jurisdictions to do business with streaming companies. That sends a dangerous message to investors that Canada is becoming more costly, less predictable and not worth investing in because it is not competitive. Investment matters because we need to draw it into our country rather than chase it away.
Here is what happens when investment thrives. The member across the way is shaking his head, but it creates jobs, raises wages, drives innovation and creates opportunities for everyday, hard-working Canadians. That is what happens when we are able to draw investment into our country, but the government seems committed to the opposite, which means that projects, capital, jobs and opportunities go elsewhere while the Canadian people ultimately suffer.
We are already seeing what investment can do when the government gets out of the way. Earlier this year, Netflix opened a major animation studio in Vancouver. That is under question now, due to this increase in tax. Nevertheless, Netflix created this. It has spurred thousands of jobs, and it is bringing significant economic investment into Canada to the tune of tens of millions of dollars. That is exactly the kind of growth that we should be encouraging.
Instead, the Liberals are putting up more barriers and more costs that threaten future investment in Canada's film, television and digital production sectors, production hubs like Vancouver, Toronto, Montreal and, increasingly, Atlantic Canada. Members opposite might want to sit up and listen to that. They rely on a healthy mix of Canadian talent and international investment, working together to create jobs and world-class content here at home, but this tax begins to call that into question. When Canada becomes a higher-cost, more regulated environment, we risk slowing the momentum and limiting opportunities for Canadians. Even the U.S. Chamber of Commerce has strongly condemned the Online Streaming Act and the CRTC's most recent decision warning that Canada is moving toward rigid one-size-fits-all regulation that discourages investment.
Conservatives support Canadian artists. We support creators, musicians, filmmakers and storytellers. We want them to thrive, but we do not strengthen Canada's culture by making life more expensive for Canadians. In fact, the opposite is what happened. We do not support creators by discouraging investment. We do not build a stronger economy by punishing growth. In fact, a strong culture requires a strong economy. If we want the cultural sector to thrive, then we need to build a thriving economy, a thriving ecosystem for these folks. Prosperity will happen.
There is also a serious democratic problem here. For centuries, parliamentary democracy has been built on a simple principle and that is that taxes should only be imposed by elected representatives accountable to the people, not by unelected regulators such as the CRTC and not by bureaucrats operating at an arm's length from the minister. However, the Liberal-appointed CRTC has effectively imposed a massive new tax burden on Canadians without Parliament even voting on it. If the government believes that Canadians should pay higher streaming taxes, then the minister should come into this place, call for a vote and allow themselves to be held accountable. They should be transparent before the Canadian people. Instead, they are choosing to stand behind a regulator and let them do their dirty work.
On top of all of this, the Liberals could not have chosen a worse time internationally to provoke this fight. Canada is heading into an important CUSMA review with the United States. The streaming tax has already been identified by the American officials as a major trade irritant. The American ambassador to Canada has warned that tripling the streaming levy is “making a bad situation worse.” At precisely the moment when Canada should be reducing trade tensions and strengthening economic co-operation, the Liberals are escalating the dispute. This weakens Canada's position when it comes to negotiations. At a time when economic uncertainty persists, Canada should be focused on becoming more competitive, not less. We should be attracting investment, not driving it away. We should be expanding trade, not creating more disputes. We should be making life more affordable for Canadians, not more expensive.
This is the choice that is before the House today, and I would urge my colleagues to choose Canadians. After 11 years of Liberal inflation, Liberal gatekeepers and Liberal tax hikes, Canadians are exhausted. They are tired of paying more while getting less. They are tired of being told to lower their expectations while government spending continues to rise. They are tired of watching opportunity leave this country because the government refuses to get out of the way and allow people to thrive.
Canadians are calling on the government to make a decision with their, the people's, best interests in mind. They are calling on the government to make life more affordable for them. It starts by scrapping this tax.