Hub Podcasts Carney’s meetings with the premiers have a chance to be consequential
Jul 22, 2025
The discussion dives into the necessity for reform in Canada's fiscal federalism, emphasizing the need for greater provincial autonomy over taxation and healthcare funding. It explores the potential benefits of reducing federal control and the hurdles that come with it. The narrative also analyzes Canada’s complex relationship with the U.S., where frustrations run high yet reliance remains deep. Lastly, it questions Canada’s inclination to shift towards China in today’s changing geopolitical landscape.
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Reform Fiscal Federalism
- Federal and provincial governments should realign tax powers with jurisdictional responsibilities for clearer accountability.
- Ottawa should transfer GST tax room to provinces, withdraw conditional transfers, and focus on national priorities like defense and foreign policy.
Canada’s Strategic Alignment Reality
- Canada historically aligns economically and security-wise with the U.S., its geographically proximate and politically compatible ally.
- Pivoting toward China risks security and ignores Canada's limited geopolitical influence and intelligence capabilities.
U.S. Defense Support Example
- When a hijacking occurred from Victoria International Airport, U.S. jets intercepted and forced the plane to land.
- This incident illustrates Canada’s reliance on U.S. defense capabilities for national security.