Dear Friend,

As you probably heard, yesterday was Tax Freedom Day.

It fell 20 days earlier this year than last year. But as you can imagine, this is not a reason for celebration – quite the opposite.

The early date is not the result of governments reducing taxes, but rather due to the economic shutdowns in response to COVID-19. When the economy slows and incomes decline, Canadians are bumped into lower income tax brackets and pay a smaller percentage of income in taxes. Canadians have also reduced their spending, which means less sales taxes are being paid.

While an early Tax Freedom Day is not good news, the reception of our research has been.

Yesterday alone, our Tax Freedom Day content reached hundreds of thousands of people on social media. It also appeared in Sun newspapers across the country (including some entire covers), reaching millions more people in the process!

As a result of the economic shutdowns, governments have ramped up spending and in turn, deficits are adding up.

Last week, the Parliamentary Budget Officer openly remarked that it's "not unthinkable" that the federal debt alone will reach $1 trillion during this fiscal year!

Regardless of what that number ends up being, the unprecedented spending in response to COVID-19 will have consequences for years to come.

That is why the Institute is, and will continue to be, more important than ever.

There will be no shortage of voices encouraging governments to retain their expanded economic control post-pandemic. But our research will continue to inform and educate Canadians about the long-term effects these policies and debt levels will have.

The Fraser Institute has prudently managed its finances, and we’re confident we can make it through this difficult period. Any support you can provide at this time will help ensure that we come out of this stronger than ever so that we can continue doing important research like this. If you can, please consider making a donation today.

Thank you for your continued support.

Stay safe,

Niels Veldhuis
President

PS: Need a quick refresher on Tax Freedom Day? Check out our new eBook - free for all our email list subscribers! Download your copy here.