The Vancouver Sun took a look at the billions in requests for new federal government spending and tried to bring a little reason into the discussion, reminding Canadians that much of the new spending being done by the Trudeau government is borrowed money. From their editorial today:

But Ottawa should bear in mind that there is only one taxpayer, who is trying to manage high housing costs, rising energy, transportation and education expenses, and an increase in taxes and fees of all kinds.

Politicians must also recognize that deficits, to which some economists give a stamp of approval, are added to the debt. That debt is passed down to future generations. It’s not a legacy they will appreciate.

It mirrors a recommendation the CTF made to the BC Budget committee earlier this month:

Over the coming months and years, it will be tempting for the provincial government to jump on board with a federal government that is imperiling future generations with a massive debt increase. The Trudeau Liberals will come to BC with billions of dollars in borrowed money for all sorts of projects and initiatives, and expect the provincial government to jump on board with even more money.

It is difficult for politicians to say no to a senior level of government offering money, but if we truly believe in the one-taxpayer principle, then it may be wise to say no to some of that spending.

In its 2015 BC Budget document12, the government outlined the following: “With only one taxpayer funding multiple levels of government and important public services, the Province and local governments must collaborate to help ensure that public services remain affordable.”

The one-taxpayer principle is essentially this: while there are dozens of taxing agencies spread across three levels of government, all of their charges inevitably fall on the same taxpayers. One taxpayer pays federal, provincial and municipal taxes, so all these governments and agencies have a responsibility to keep their own tax burden as light as possible. As Ernst & Young notes, “there is only one ‘pocket’ that pays for these services.”

Not every project funded by the federal government will be a good one. The last time the federal government went tens of billions of dollars into debt to “stimulate the economy,” the results were mixed at best.