The Volkswagen handout prompted automaker Stellantis to halt construction of an electric vehicle battery factory.
Policymakers should make business and personal income taxes more competitive and reduce the costs of regulation.
Provincial government subsidies total more than $100 million per year.
Federal, provincial and local governments spent more than $352 billion subsidizing firms from 2007 to 2019.
Government should help foster a pro-growth environment that gives all businesses the opportunity to thrive.
The federal government plans to spend an estimated $13 billion on subsidies for Volkswagen’s Ontario battery plant.
In 2017, the provincial government spent $310 million on corporate welfare.
By 2027/28, the forecasted annual cost of federal debt interest will exceed $50 billion—or more than $1,200 per Canadian.
The costs included agricultural subsidies and tax credits for natural gas drilling.
Roughly half of all business income tax revenue collected by the province was sent back to select firms and industries.