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MP Earl Dreeshen explains opposition to budget and support for plan to replace the Carbon Tax

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Submitted by Red Deer – Mountain View MP Earl Dreeshen

In Touch with MP Earl Dreeshen

2021 has continued to be a challenging year after a turbulent 2020. Our community as well as communities and governments around the world are navigating the COVID-19 pandemic and it has led to significant challenges. Many people are dealing with significant health effects, financial strain, mental health strain, and so much more.

I would challenge everybody to recognize that, to some degree, everyone in Canada has been affected by the pandemic. I encourage you to keep that in mind in our dealing with our neighbors and fellow community members going forward.

2021 Budget

For the first time in over two years, the Liberal Government has tabled a budget. They spent most of the pandemic, and the year prior, dodging from accountability on their spending and we can see why.

It’s clear Justin Trudeau’s election budget fails to put forward a plan to adequately fund healthcare, grow the economy, and create jobs.

Justin Trudeau’s budget is a massive letdown for Canadians. Unemployed Canadians hoping to see a plan to create new jobs and economic opportunities for their families are going to feel let down. Workers who have had their wages cut and hours slashed hoping to see a plan to reopen the economy are going to feel let down. Families that can’t afford more taxes and are struggling to save more money for their children’s education or to buy a home are going to feel let down.

This is not stimulus spending focused on creating jobs, but spending on Liberal partisan priorities backed by a $100 billion election slush fund. Unfortunately, this budget does nothing to secure long term prosperity for Canadians. Instead, what Justin Trudeau has proposed is a “reimagined” Canadian economy that dabbles in risky economic ideas, like abandoning Canada’s world leading and sustainable natural resource industries, leaving our economy in a precarious position.

For these reasons, my Conservative colleagues and I voted against the 2021 Budget. More of my thoughts on the budget can be found here

Economic Recovery

As Conservatives, we have been focused on economic recovery across Canada. We acknowledge that these times are unprecedented and additional measures were necessary. Millions of Canadians had their employment and businesses impacted and there was a responsibility to those who fell through the cracks.

However, the reason why these programs need to be extended is due to Justin Trudeau’s failure on vaccines. We are behind many of our allies on moving forward which is why it is so critical that we have a plan to recovery now, and can hit the ground running when possible.

Erin O’Toole and our team has put forward Canada’s Recovery Plan, which is focused on creating financial security and certainty. This plan will safely secure our future and deliver a Canada where those who have struggled the most through this pandemic can get back to work.

This plan will ensure that manufacturing at home is bolstered, where wages go up, and where the dream of affording a better life for their children can be realized by all Canadians.

We are focused on securing jobs and the economy for Canadians who have been left behind by Justin Trudeau.

Canada’s Conservatives got Canada through the last recession, and with Canada’s Recovery Plan, we will get Canadians through this one too.

Conservative Environment Policy

I have heard a lot of feedback already on the proposed Conservative Environment Policy.

As you might know, I have been a vehement opponent of the Liberal government’s environmental approach, and of their Carbon Tax. I have spoken in the House of Commons and other venues on many occasions about the devastating impact the Carbon Tax is having on our farmers and ranchers as well as its devastating impact on all residents of Alberta – who are literally seeing their paychecks and their savings eaten away by this ill-conceived Liberal tax.

My Conservative colleagues and I remain committed to scrapping the job-killing Carbon Tax. We also remain firmly committed to protecting and enhancing our environment – as Conservatives have always done. Conservatives have always been the party which cares the most about conserving our resources, protecting our soils and waters, while taking action to preserve the environment we live in. As Western Canadians, we all understand the need to preserve the environment for future generations.

What we don’t understand is the Liberal government’s approach which is one of big government taxing consumers and phasing out jobs at a time that we need them the most.

Our plan for the environment does include a carbon pricing mechanism. Young Canadians in particular want to see us take action on this front. And we will need a broader base of voter support than we have had in the past if we are going to form Canada’s next government.

In a nutshell, the Low Carbon Saving Account works like Airmiles or other affinity programs. When you purchase gas, your card is fully credited the carbon price. You can bank that money to eventually use on energy efficient products like new windows, hot water tanks, low emission equipment for your farm or business, etc. Businesses get their own account so they no longer pass the cost onto you the consumer as a ‘hidden carbon tax’.

A comparison I have heard is to the deposit on your cans and bottles. You pay it, but if you return the cans and bottles you get that money back. Yes, there will be upfront costs, but the costs will be less than 1/3 of the Liberal plan once fully implemented and you retain agency of every penny you put in.

One of the other major concepts is that small businesses and non-profits will be able to keep control of the money they pay, instead of the current system where these organizations subsidize the program for people in downtown Toronto who don’t have to drive to work.

The savings account idea is only a portion of the plan in total. I would encourage you to look at the whole plan if you are interested. One of the driving ideas is that we don’t want to shut down our industry just to see it end up in other jurisdictions. Our plan addresses that by being less punishing for using carbon while still incentivising more environmentally friendly practises through use of the savings plan. We will also study putting tariffs on certain products that come from places like China that do not do their part in addressing the environment, so that we are not artificially harming our own industries.

Independent analysis, conducted by Navius Research, found this plan would be expected to achieve substantially the same emission reductions as the Stephen Harper’s targets, while resulting in a boost to jobs and the economy. In addition, not a cent of consumer tax dollars will end up with bureaucrats in Ottawa.

I would ask you to take the time to read the plan in its entirety and not rely solely on media coverage.

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Automotive

Canadian interest in electric vehicles falls for second year in a row: survey

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From LifeSiteNews

By Clare Marie Merkowsky

Canadians’ disinterest in electric vehicles comes as the Trudeau government recently mandated that all new light-duty vehicles in Canada are zero emission by 2035.

Research has revealed that Canadians are increasingly unwilling to purchase an electric vehicle (EV).

According to an April 22 survey from AutoTrader, Canadians remain skeptical of Prime Minister Justin Trudeau’s electric vehicle mandate and ongoing advertisement surrounding electric vehicles, as interest in owning one dropped for a second year in a row.

“Overall, while almost half of non-EV owners are open to buying an EV for their next vehicle, interest in EVs has declined for the second year in a row,” reported Tiffany Ding, director of insights and intelligence at AutoTrader.

In 2022, at least 68 percent of Canadians were interested in buying an electric vehicle. However, by 2023, the number declined to 56 percent. So far in 2024, there is even less interest, with only 46 percent saying they were open to purchasing one.

“AutoTrader data shows a direct correlation to gas prices and EV interest, and since gas prices have normalized from their peak in 2022, EV interest has also dropped,” a summary of the survey explained.

However, Canadians did show a slight increase of interest in hybrid vehicles, with 62 percent of those looking to purchase an electric vehicle saying they would look at a gas-electric hybrid, compared with 60 percent in 2023.

 The survey also questioned Canadians regarding Trudeau’s Zero Emission Vehicle (ZEV) mandate, which requires all new light-duty vehicles in Canada are zero-emission by 2035, essentially banning the sale of new gasoline/diesel-only powered cars.

The mandate comes despite warnings that it would cause massive chaos by threatening to collapse the nation’s power grids.

“Over 75 percent of respondents are aware of the federal government’s ZEV mandate, which requires all new light-duty vehicles sold in Canada to be zero-emission by 2035,” the survey found.

Canadians’ concerns in buying an electric vehicle include limited travel range/distance, inadequate availability of charging stations, higher purchasing costs, and concerns that they do not perform well in cold weather.

Indeed, this winter, western Canadians experienced firsthand the unreliability of Trudeau’s “renewable” energy scheme as Alberta’s power grid nearly collapsed due to a failure of wind and solar power.

Trudeau’s plan has been roundly condemned by Canadians, including Alberta Premier Danielle Smith. In 2022, Smith denounced a federal mandate that will require all new cars sold after 2035 to be “zero emission” electric (EVs) vehicles and promised that Albertans will always have the choice to buy gasoline-powered cars.

Since taking office in 2015, Trudeau has continued to push a radical environmental agenda similar to the agendas being pushed the World Economic Forum’s “Great Reset” and the United Nations’ “Sustainable Development Goals.”

The reduction and eventual elimination of the use of so-called “fossil fuels” and a transition to unreliable “green” energy has also been pushed by the World Economic Forum (WEF) – the globalist group behind the socialist “Great Reset” agenda – an organization in which Trudeau and some of his cabinet are involved.

The Trudeau government’s electric vehicle plan comes despite the fact Canada has the third largest oil reserves in the world. Electric cars cost thousands more to make and buy, are largely considered unsuitable for Canada’s climate as they offer poor range and long charging times during cold winters and have batteries that take tremendous resources to make and are difficult to recycle.

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Business

Ottawa’s capital gains tax hike—final nail in ‘business investment’ coffin

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From the Fraser Institute

By Tegan Hill and Jake Fuss

From 2014 to 2022, inflation-adjusted total business investment (in plants, machinery, equipment and new technologies but excluding residential construction) in Canada declined by C$34 billion. During the same period, after adjusting for inflation, business investment declined by a total of $3,748 per worker

According to the recent federal budget, the Trudeau government plans to increase the inclusion rate from 50 per cent to 66.7 per cent on capital gains over $250,000 for individuals and on all capital gains realized by corporations and trusts. Unfortunately, this tax hike will be the final nail in the coffin for business investment in Canada, which likely means even harder economic times ahead.

Canada already faces a business investment crisis. From 2014 to 2022, inflation-adjusted total business investment (in plants, machinery, equipment and new technologies but excluding residential construction) in Canada declined by C$34 billion. During the same period, after adjusting for inflation, business investment declined by a total of $3,748 per worker—from $20,264 per worker in 2014 to $16,515 per worker in 2022.

While business investment has declined in Canada since 2014, in other countries, including the United States, it’s continued to grow. This isn’t a post-COVID problem—this is a Canada problem.

And Canadians should be worried. Businesses investment is key for strong economic growth and higher living standards because when businesses invest in physical and intellectual capital they equip workers with the tools and technology (e.g. machinery, computer programs, artificial intelligence) to produce more and provide higher quality goods and services, which fuels innovation and higher productivity. And as firms become more efficient and increase profits, they’re able to pay higher wages, which is why business investment remains a key factor for higher incomes and living standards.

The Trudeau government’s policies—increased regulation, particularly in the energy and mining sectors (which makes Canada a relatively unattractive place to do business), higher and uncompetitive taxes, and massive federal deficits (which imply future tax increases)—have damaged business investment.

Unsurprisingly, weak business investment has correlated with a weak economy. In the fourth quarter of 2023, real economic growth per person ($58,111) officially fell below 2014 levels ($58,162). In other words, Canadian living standards have completely stagnated. In fact, over the last decade economic growth per person has been the weakest on record since the 1930s.

Instead of helping fix the problem, the Trudeau government’s capital gains tax hike will further damage Canada’s economy by reducing the return on investment and encouraging an exodus of capital from the country. Indeed, capital gains taxes are among the most economically-damaging forms of taxation because they reduce the incentive to invest.

Once again, the Trudeau government has enacted a policy that will deter business investment, which Canada desperately needs for strong economic growth. The key takeaway for Canadians? Barring a change in policy, you can expect harder times ahead.

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