The feds will continue colonizing the Canadian media with even more taxpayer funds until at least 2027, two years after the next fixed election date, set for October 2025.
Non-subsidized media uncovered the news of an increased and extended media bailout after it was buried in Tuesday's fiscal update.
The 2023 Fall Economic Statement proposes to increase the cap on labour expenditures per eligible newsroom employee from $55,000 to $85,000. It is further proposed that the Canadian journalism labour tax credit rate be temporarily increased from 25 per cent to 35 per cent for a period of four years. As a result, organizations would be able to claim up to $29,750 in eligible labour costs per eligible newsroom employee per year.
These changes would apply to qualifying labour expenditures incurred on or after January 1, 2023. The credit rate would return to 25 per cent for expenditures incurred on or after January 1, 2027.
Transitional rules would apply to prorate these changes in cases where an organization's tax year does not follow a calendar year.
Michael Geist, law professor and expert in internet law, put the federal numbers into context: "Government Announces Plans to Pay For 35% of Journalist Costs for News Outlets With 116% Increase in Tax Credit Per Employee."
According to Geist, news outlets could previously claim a maximum of $13,750 per employee. That now increases to $29,750 or by 116%. Taxpayer cost is estimated at $120M in the next three years alone.
The previous $600 million bailout was set to expire in March 2024, 18 months shy of the next election.
Is there a more powerful lobby group in this country than the media? They got Trudeau to shake down social media companies for an additional subsidy through Bill C-18, the Online News Act.
If a social media user links to news content, that law requires the social media platform to pay the news company, like having the paperboy pay the newspaper publisher when he delivers a paper.
Another bill, C-11, the Online Streaming Act, punished independent media and creators by giving government regulators the power to manipulate algorithms to alter the discoverability of alternative news sources.
Don't be surprised to see mainstream media journalists defend Trudeau like their jobs depend on it — because they do.