Another day, another government report proves carbon taxes are a drag on our economy that Canadians can’t afford.
In 2030, the second carbon tax “will result in an overall (Gross Domestic Product) decrease of up to $9 billion.” That’s according to government documents tabled in the House of Commons in response to an order paper question filed by Conservative MP John Barlow (Foothills).
Yes, that’s a $9 billion cost to our economy from Prime Minister Justin Trudeau’s second carbon tax alone. And yes, Trudeau is punishing Canadians with two carbon taxes.
Trudeau buried a second carbon tax in fuel regulations that took effect July 1, 2023.
The regulations require producers to reduce the carbon content of their fuels. If they can’t meet the requirements, they must purchase credits, increasing costs that are passed onto Canadians at the pumps.
In a real-world example, British Columbia has had a second provincial carbon tax for years, and it’s a reason why it typically has higher pump prices than Alberta.
The Parliamentary Budget Officer (PBO), the government’s independent budget watchdog, also released an analysis of Trudeau’s second carbon tax.
In 2030, when the regulations are fully implemented, it will cost the average family up to $1,157 and increase the price of gas by up to 17¢ per litre.
And there are no rebates with Trudeau’s second carbon tax.
The government’s own analysis shows the second carbon tax will “disproportionately impact lower and middle-income households, as well as households currently experiencing energy poverty.” That will especially harm “single mothers” and “seniors living on fixed incomes.”
Taxpayers will also need to fork over an extra $90 million to fuel the bureaucracy administering this regulatory quagmire, according to the government. Canadians will have the pleasure of paying higher taxes so more federal paper-pushers can increase our fuel prices.
All these costs are just the tip of the iceberg. That’s because the costs of Trudeau’s second carbon tax are added on top of the costs of Trudeau’s first carbon tax.
A previous report from the government shows the first carbon tax will cost the Canadian economy $12 billion this year and $30 billion by 2030.
By 2030, Trudeau’s two carbon taxes will add about 54¢ per litre to the price of gas. They will also lead to 94,000 fewer jobs, according to the Fraser Institute.
You don’t need a PhD in economics to understand why carbon taxes in Canada are so economically painful.
Canada is a very big place. Businesses need to ship their products long distances before they get to customers. With the carbon tax costing Canadian truckers billions every year, those increased costs flow through the entire economy.
Canada is a very cold place. Families need to keep their homes warm, and businesses need to keep their workers and customers from freezing during the winter months. That heating energy is carbon taxed too.
Canada is at a very big competitive disadvantage because of the carbon tax.
About 70% of countries don’t have a national carbon tax, according to the World Bank. Meanwhile, Canadians pay two.
Some of the largest emitting countries like Russia and India don’t have national carbon taxes. Neither does our largest trading partner — and competitor — the United States.
“The (climate) community has largely moved into a different framework,” said John Podesta, a long-time Democrat strategist, when asked whether the Biden administration would impose a carbon tax in the U.S.
This also explains why using carbon taxes to make it more expensive for Canadians to drive to work, heat our homes and buy food, isn’t an environmental solution.
“Canada’s own emissions are not large enough to materially impact climate change,” according to the PBO.
Canadians can’t afford to keep paying Trudeau’s carbon taxes. Canadians need a federal government that will scrap all carbon taxes.
Franco Terrazzano is federal director of the Canadian Taxpayers Federation