New polling shows Canadians are frustrated with taxes and subsidies while a majority oppose borrowing $25 billion for a sovereign wealth fund.

A new national poll suggests Canadians are becoming increasingly skeptical of government spending, with majorities saying they pay too much in taxes, question the value of corporate subsidies and oppose borrowing billions of dollars to create a federal sovereign wealth fund.

The survey, conducted by Ipsos for the Montreal Economic Institute (MEI), found that 70 per cent of Canadians believe their overall tax burden reduces their standard of living, while 63 per cent say they pay too much income tax. The results point to continued concern over affordability as households contend with the combined effects of housing costs, food prices and other living expenses.

The poll also found widespread skepticism toward government subsidies. Two-thirds of respondents, or 66 per cent, said subsidies are not worth the cost to taxpayers. The finding comes as both federal and provincial governments continue to offer billions of dollars in incentives to attract investment in sectors such as electric vehicles, battery manufacturing, clean technology and other strategic industries.

Perhaps the most politically significant finding involved the federal government's proposed sovereign wealth fund.

In its Spring Economic Update, the federal government announced plans to establish a sovereign wealth fund backed by an initial $25 billion in borrowed capital. The fund is intended to make long-term investments in strategic Canadian industries and infrastructure, with the goal of generating returns while supporting economic growth. Unlike Canada's public pension funds, the proposed fund would be financed through federal borrowing rather than pension contributions.

According to the poll, 58 per cent of Canadians oppose borrowing $25 billion to establish the fund, while only 20 per cent support the proposal. The remaining respondents were undecided. The survey also noted the federal government continues to project a deficit of approximately $65.4 billion for the current fiscal year, a factor the MEI says may influence public opinion on additional borrowing.

Canada differs from many countries with established sovereign wealth funds because those funds are typically built from budget surpluses or revenues generated from natural resources. 

The poll was conducted online between June 26 and July 1 among 1,005 Canadian adults. Ipsos estimates the results would be accurate within plus or minus 3.8 percentage points, 19 times out of 20, if a comparable random sample had been surveyed. As with all online surveys, a traditional margin of error does not apply.