The Federal Deficit Explained: Will It Lead to Higher Taxes? | PART 1

Canada’s 2025 federal budget just changed the rules—and your bill. Mike Wixson and Paul Micucci unpack how a record $78.3B deficit, a higher $2.54T debt ceiling, and a shift to accrual accounting actually work, using a simple “two buckets” model you’d use at home or in a small business. Clear, plain-English breakdown—no spin.

What you’ll learn:

• The “Bucket 1 vs. Bucket 2” model: operating deficit vs. capital spending

• Why the accounting switch (cash → accrual) changes how numbers appear

• Where revenue growth comes from (personal, corporate, GST/excise, EI)

• The biggest expense drivers (health transfers, seniors’ benefits, debt interest)

• How much new financing is required and why project ROI now matters

Subscribe for more conversations like this.

Subscribe: https://www.youtube.com/@TPL_media

We want you with us for more great programming: https://www.tplmedia.ca/