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The Canadian Take

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This is becoming a recurring theme with our government but Ottawa has decided to reverse one of its biggest streaming policies before it ever fully settled in.

We’re also looking at Danielle Smith’s blunt message for temporary residents, more than 10,000 federal workers applying to retire early, and a possible WestJet strike right before the long weekend.

Streaming
Ottawa Just Killed the Netflix Tax

The federal government is moving to eliminate the rule requiring large foreign streaming companies to contribute 5% of their Canadian revenue toward Canadian broadcasting, news and Indigenous content.

The reversal appeared through a federal court filing rather than a regular government announcement. Ottawa is asking the court to send the CRTC’s decisions back with instructions to remove the contribution requirement.

The government’s argument: Services such as Netflix, Disney and Amazon could have passed the cost down to subscribers through higher prices.

The CRTC had also introduced a broader requirement that major streaming services spend 15 per cent of their Canadian revenue on Canadian programming, including the original five per cent contribution.

Ottawa now plans to rely more heavily on direct government funding for Canadian culture.

That means the cost does not completely disappear. More of it may move from streaming companies to taxpayers.

American companies and U.S. officials had strongly opposed the original rules. Prime Minister Mark Carney says the reversal was decided earlier and was not a recent concession to Washington.

That may be true, but removing one of America’s complaints still makes the trade relationship a little easier for Ottawa.

Immigration
Smith’s blunt message on expired visas

Alberta Premier Danielle Smith says temporary residents who reach the end of their legal status and do not receive permission to remain should leave Canada.

Her comments came after she was asked about former international students protesting because they did not receive the work permits or permanent residency they hoped for.

A study permit or temporary work permit does not guarantee permanent residency.

Someone whose status expires must leave, restore their status if eligible or qualify through another legal immigration pathway.

But Canada helped create the expectation problem.

Governments, colleges and recruiters spent years presenting Canadian education as a possible route toward work and permanent residency. Many students made expensive decisions believing they would have a realistic opportunity to stay.

That opportunity was never guaranteed, but the message being sold was often much more hopeful than the fine print.

Smith is also asking Ottawa to give Alberta more control over selecting immigrants whose skills match provincial labour shortages.

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Government
10,000 federal workers want to retire early

The federal government received 10,006 applications for its early-retirement program before last week’s deadline.

The program allows approved employees to receive an immediate pension based on their years of service without the usual early-retirement penalty.

Ottawa sent information to roughly 68,000 potentially eligible workers as it tries to reduce the size and cost of the federal public service.

But 10,000 applications do not automatically mean 10,000 government positions will disappear.

Some applications may be rejected. Departments may also replace workers whose jobs are still considered necessary.

The government could save money by eliminating positions after people retire, but it also risks losing experienced employees and slowing services.

There is also a familiar government problem to watch: retired workers leaving payroll and later returning as higher-priced consultants.

Canada - US Trade
Why Carney will not use Canadian oil against Trump

Prime Minister Mark Carney is rejecting calls to reduce Canadian energy exports as leverage in the trade dispute with the United States.

Canada supplies the U.S. with large amounts of crude oil, natural gas and electricity. That makes energy look like one of the strongest tools Ottawa could use.

But Canadian producers also rely heavily on American customers and infrastructure.

Restricting exports could hurt U.S. refineries, but it could also reduce Canadian jobs, company revenue and provincial royalties.

Carney’s argument is Canada’s reputation as a dependable supplier is valuable, especially as the country tries to attract investment and sell more energy to Europe and Asia.

The counterargument is that reliability can become a weakness when Washington knows Canada will never use its most valuable exports as leverage.

Other options could include export taxes, restrictions on selected critical minerals or using future infrastructure access as a negotiating tool. Every option would carry economic and political risks.

Alberta and Saskatchewan strongly oppose using oil as a weapon, making this a national-unity issue as well as a trade issue.

Little Known RMD Strategy Allowed by the IRS

For investors with $1M+ in retirement accounts, the tax code allows specific strategies that can reduce your tax exposure once RMDs begin—but only if used before then. 

The window is open for anyone within ten years of 73. A fiduciary advisor can review which may apply, at no cost.

Travel
Your WestJet flight could be at risk

Approximately 4,400 WestJet flight attendants could strike as early as Sunday, August 2.

The union and airline must provide 72 hours’ notice before a strike or lockout begins, and negotiations were still underway Wednesday.

WestJet is allowing passengers travelling from July 30 through August 4 to make a one-time change or cancellation without an added fee.

The main disagreement involves pay, including work performed before boarding, during delays and after passengers leave the aircraft.

Flight attendants argue they should be paid fairly for all required duties, not mainly for time connected to the flight itself.

For travellers: Make sure WestJet has your current contact information, check your flight directly through the airline and review any travel insurance or credit-card coverage.

Do not cancel on your own before checking the rules. Cancelling voluntarily could affect your refund or rebooking options.

Quick things happening across Canada

  • A tragic update in Calgary: Police found the body of a child believed to be missing 11-year-old Parker. Formal identification was still underway, and police had not released further details.

  • A politician read the AI instructions aloud: New Brunswick politician Bill Oliver went viral after apparently reading editing directions left inside an AI-assisted speech. Using AI is one thing. Reading the prompt is a strong sign nobody proofread it.

  • Apple turns devices into leases: Apple launched a U.S. program allowing customers to lease iPhones, iPads, Macs and Watches through monthly payments. The lower price comes with a catch: Apple keeps ownership unless the customer buys the device later.

  • Kawhi’s investigation could stretch into 2027: The NBA’s investigation into possible salary-cap violations involving Kawhi Leonard and the Los Angeles Clippers could continue into next year. Leonard remains closely connected to Canada after leading Toronto to its only NBA championship.

  • Carney says Washington did not force the reversal: The prime minister says Ottawa had already decided to revisit the streaming contribution system before the latest U.S. trade pressure. Removing the policy still eliminates one source of tension with Washington.

  • Alberta remains part of Carney’s balancing act: Ottawa is trying to reach economic agreements with Alberta while avoiding policies that could strengthen separatist sentiment. The oil debate shows how quickly Canada-U.S. trade decisions can become national-unity questions.

P.S. Do you think streaming companies should help fund Canadian television, news and culture, or should Ottawa keep subscription costs down and use taxpayer money instead? Hit reply and let me know.

If today’s issue helped, share it with another Canadian.

Until Tomorrow,
Dean.

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