Liberals lavish legacy media with $129 million more in bailout funds
by Cosmin Dzsurdzsa
The Liberal government has pledged an additional $129 million in taxpayer funds over the next five years to bail out failing legacy media outlets.
This hefty top up is in addition to the $600 million media bailout announced in 2019, sparking concerns about government influence over journalism.
Outlined in the Fall Economic Statement presented by Finance Minister Chrystia Freeland to the House of Commons Tuesday, the new measure proposes to upgrade the Canadian journalism labour tax credit.
Effective January 1, 2023, the federal government aims to boost the yearly limit on labor costs that can be claimed per eligible employee from $55,000 to $85,000.
Additionally, the tax credit rate is set to temporarily increase from 25% to 35% for a four-year period.
While the government claims that this measure is essential to support journalism in the face of economic challenges, critics accuse the government of using the allure of federal subsidies as a way to buy appealing coverage.