When Policy Meets Reality
“If you think you’re going to bring our trade with the United States down to zero, you’re dreaming.” – Kim Moody
Canada’s economy is inseparable from the United States. Nearly 70 percent of our economic activity depends on that relationship. So when the federal government drops a new budget promising $60 billion in savings, public-service cuts, and “sacrifice,” the ripple effect reaches every Main Street business and household.
This week on Wealth on Main Street, Richard Canfield sits down with Kim Moody, founder of Moody Private Client and one of Canada’s most outspoken tax experts. Together, they unpack what’s really inside Ottawa’s 2025 budget and what it means for Canadians trying to protect family wealth in a time of inflation and fiscal fatigue.
Why the Budget Delay Matters
Kim doesn’t mince words: a delayed budget is a disgrace.
Since 1867, Canada has delivered a federal budget every year through world wars, depressions, and recessions except 2020, when COVID spending exploded without accountability. This year’s delay, he argues, signalled confusion and denial, not caution.
“A budget isn’t just paperwork; it’s a plan. Without it, business owners live in planning limbo.”
Spending, Inflation & the Hidden Tax
The discussion turns bluntly toward inflation, the silent tax that erodes purchasing power faster than most realize.
- Canada now spends over $55 billion annually to service the national debt.
- That figure could hit $76 billion within a few years, roughly equal to all GST revenue.
- Debt interest doesn’t buy better healthcare or education; it rewards bondholders, often outside Canada.
Moody calls this the numbing of the nation: billions and trillions tossed around until Canadians stop paying attention.
The hosts compare it to “white noise that puts people to sleep.”
Winners, Losers & Token Good News
There are bright spots, but they’re narrow.
- The underused housing tax is gone.
- A partial rollback of the luxury tax (except on cars).
- 100 percent write-offs for certain manufacturing buildings.
- Early steps toward automatic tax filing, a move Moody applauds as common sense.
Everything else? Layers of political clutter that complicate an already bloated Income Tax Act.
“We reward unproductive bureaucracy instead of simplifying the system for people who actually create jobs.”
The Debt Spiral Ahead
Moody warns that Canada is repeating the mistakes that triggered the 1990s debt crisis.
There are only three ways out:
- Raise taxes.
- Cut spending.
- Devalue the currency.
None is painless, and the current budget doesn’t commit to any of them.
The result? A growing burden on young Canadians, fewer opportunities, and an accelerating exodus of capital, nearly $450 billion in private wealth, have left the country in recent years.
Our Economic Lifeline: The United States
Toward the end, Moody reminds listeners of an uncomfortable truth: “Canada exists at the whim of the United States.”
Whether we like it or not, roughly three-quarters of our prosperity relies on trade and investment with our southern neighbour. Trying to “cut ties” for political reasons isn’t a strategy; it’s self-harm.
Financial Literacy as National Security
Both hosts agree: the real crisis isn’t political, it’s educational. Canadians are drowning in fiscal noise yet starving for understanding. When voters can’t read a budget, accountability dies quietly.
That’s why Wealth on Main Street exists to raise financial literacy, challenge propaganda, and teach families how to control their own capital through tools like the Infinite Banking Concept.
Resources Mentioned
- Don’t Spread the Wealth – Keep your family’s capital where it belongs.
- Keep Taxes Away – Five proven strategies to defend your wealth.
- Cash Follows the Leader – A 91-Year Family Banking Case Study.