Posted on 05/12/2025 9:44:25 AM PDT by davikkm
Canada’s national debt has reached a point where the entire Goods and Services Tax (GST) revenue is now being used to cover interest payments. Every dollar collected from GST is funneled directly to bondholders, leaving nothing for essential government services. The numbers are staggering. In the last fiscal year, $55 billion was collected in GST, and $55 billion was paid out in interest on government debt.
The Bank of Canada holds 20 percent of these bonds, meaning it is effectively paying itself interest on the debt it owns. This raises serious concerns about the sustainability of Canada’s fiscal policy. When a country’s tax revenue is entirely consumed by debt payments, it signals deep structural problems.
The situation has worsened due to rising interest rates. Government borrowing costs have surged, forcing Ottawa to allocate more funds toward servicing debt rather than funding infrastructure, healthcare, or social programs. This is not just a financial issue—it is a policy failure.
(Excerpt) Read more at citizenwatchreport.com ...
The Bank of Canada holds 20 percent of these bonds, meaning it is effectively paying itself interest on the debt it owns
The consequences are clear. With GST revenue fully absorbed by debt payments, the government must rely on other taxes or increased borrowing to fund basic operations. This cycle of debt dependency is unsustainable, and without intervention, Canada risks deeper economic instability.]
No worries, they still have VAT that can be consumed as well.
Don’t worry, the Liberals will just double the GST.
problem solved.
Stop your tariffs Oh Canada...and we’ll stop ours...and maybe instruct your people to not boo our natioan anthem.
The rate is 5%.
That’s okay. They just elected a central banker to run the place. That should work out well... Imagine if Jerome Powell was President.
Thank God they are telling trump to hit the curb. Just what we need is a national with debt.
This is bad, but not nearly as bad as we have it. Our interest payments are 1.1 trillion 21X that of Canada, but with a tax base 10X that of Canada. Canada funds its government with a very high income tax. Their GST is a VAT.
“Thank God they are telling trump to hit the curb. Just what we need is a national with debt.”
Why would we assume the debt?
Maybe because absorbing their debt and their population would actually lower our debt per capita. The problem is we couldn’t afford to fund their socialized medicine and we don’t want their liberal voters.
Thanks for posting. Interesting eh?
Liberals ,LOL
Canada is Europe West.
Trump offers plan to Canada
Trump really wants the entire country.
As of 3rd qtr 2024, Fed owns $7T of US debt. When libs dismiss federal debt as “We owe yhat to ourselves”. I can’t figure why they don’t worry about the other publicly owned debt.
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