LTE: Starving local news and awarding billionaires with huge tax breaks isn’t okay

Dear Editor,

The federal government’s decision to back away from the Digital Services Tax is a profound letdown and a dangerous one. At a time when Canadian journalism is barely staying afloat, Ottawa’s hesitation sends a clear message: the government is willing to protect the profits of Big Tech over the survival of local media. Canada’s planned digital tax was 3% of the digital services revenue a firm takes in from Canadian users above $20 million in a calendar year.

My fiancé runs a small but vital media outlet, one of many trying to do essential national reporting with minimal resources. Just last week, he found out they won’t be receiving a federal $50,000 tax credit they were counting on to continue their work (they didn’t meet the minimum hours worked requirement because they had to cut hours to continue their operations). That funding would have supported salaries, investigations, and coverage that otherwise won’t happen. They have already started cutting core-staff hours, affecting each of their households’ incomes. It’s not just a number on paper. It’s another blow to an already precarious profession.

Meanwhile, Meta’s decision to block Canadian news content in response to Bill C-18 has gutted local journalism’s reach. Entire communities have lost access to timely, reliable news. We have watched Indian Times close in Akwesasne, the Glengarry News in Alexandria shutter, and other news outlets are shrinking their content offering. Journalists are working harder than ever, but fewer people see their stories, and fewer outlets can afford to produce them.

The Digital Services Tax was meant to hold multinational tech platforms accountable and begin to level a deeply uneven playing field. Backing away from it now, when newsrooms are closing and experienced reporters are leaving the industry in droves, is not just bad policy. It’s abandonment. As a small business owner, I am wondering why we are on the hook for our tax payments while those with massive sums of money get a free pass, when many small businesses are struggling for their own survival. 

If we want a functioning democracy, we need a healthy media and business ecosystem and fair tax practices. That requires courage from our leaders, not capitulation.

Sincerely,
Kelly Bergeron
Cornwall, ON
CEO of Poptronic VR