One of the issues that has recently come to light in Ottawa is the costing of the new clean fuel standard, which is basically, a second carbon tax. This is at a time when inflation and interest rates are still high, and families and small businesses finances are still squeezed.
According to an analysis by the office of the non-partisan Parliamentary Budget Officer (PBO), the second carbon tax is estimated to cost the average Canadian household an additional $573 per year. This is without any rebates, and with families in some provinces facing costs as high as $1157. The PBO’s past analysis has shown that the vast majority of Canadians already are further behind, net any rebates they may get, based on the first carbon tax.
The PBO reports that the combined impact of both carbon taxes will result in an additional 61 cents per litre of gasoline once fully in effect. The first carbon tax will cost 41 cents per litre, the second carbon tax 17 cents per litre, and with 3 cent per litre GST added on, it will all add up to a total of 61 cents per litre. GST on these carbon taxes is nothing more than a tax on a tax.
This will also significantly affect the cost of anything shipped - whether it be food, medicine, home appliances, construction supplies, or anything else we may purchase.
Furthermore, the PBO confirmed that this tax will shrink our economy with predictions that British Columbia will see a GDP contraction because of these carbon tax policies. The additional costs associated with carbon taxes hinder economic growth and competitiveness as a trading nation.
These policies come at a nonsensical time as Canadians struggle with a cost-of-living crisis, and a reported 1 in 5 people are skipping meals due to 40-year high inflation. I have heard from many members of our community who are worried the additional costs will significantly affect the affordability of gas, heat, and groceries, further straining household budgets. Local food bank usage is up over 30% already.
Despite previously claiming that the PBO is a non-partisan and trustworthy source, the Liberal Minister of Environment and Climate Change has disputed these findings saying that it is an “incomplete analysis”.
Conservatives are committed to common sense policies by eliminating the carbon taxes and bringing home affordability for Canadians. It is important that we protect the environment through technological advancements and innovation, reduce global GHG emissions through LNG exports, incentivizing carbon capture and storage, and speeding up approval processes for tidal energy, nuclear and hydro.
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