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Canadian Taxpayer Federation calls on Ottawa to rescind recent Carbon Tax hike

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From the Canadian Taxpayer Federation

Ottawa’s carbon tax hike out of step with global reality

by Aaron Wudrick, Federal Director and Franco Terrazzano, Alberta Director

(This column originally appeared in the Financial Post)

 

Prime Minister Justin Trudeau has chosen to make life more expensive by increasing the federal carbon tax by 50 per cent amidst the COVID-19 economic and health crisis. Meanwhile, governments around the world are moving in the opposite direction because hiking taxes during a global pandemic is a bad idea.

Provinces have already tapped the breaks on their own carbon tax hikes. British Columbia Premier John Horgan announced that he would not be going forward with his planned April 1 carbon tax hike. Instead of mirroring the federal carbon tax hike, Newfoundland and Labrador is maintaining its tax at $20 per tonne. The price of carbon allowances in the Quebec-California cap and trade system have also fallen due to COVID-19 and the current macroeconomic realities.

The European Union’s cap and trade scheme, which applies to 30 countries, has also seen its carbon tax rate drop significantly. For most of 2019 and early 2020, EU carbon prices traded around €25 per tonne before nosediving to around €15 per tonne in March. The EU’s cap and trade carbon tax rate has fallen 32 per cent below its 2020 peak, according to the most recent data available on the ICAP Allowance Price Explorer. While the tax rate has increased since bottoming out, S&P Global Platts Analytics forecasts the COVID-19 shock keeping downward pressure on the cap and trade market.

Other counties are providing further carbon tax relief. The Norwegian government reduced its carbon tax rate on natural gas and liquified petroleum gas to zeroand will keep the rates below the pre-coronavirus level until 2024. Norway also deferred payments on various fuel taxes until June 18.

Estonia Finance Minister Martin Helme formally called for his country to consider leaving the EU’s cap and trade carbon tax system to provide relief. The prime minister later announced that Estonia would not seek to leave the EU’s carbon tax system, but the Estonian government lowered the excise tax on electricity to the minimum allowed by the EU and lowered its excise tax on diesel, light and heavy fuel oil, shale oil and natural gas.

“Due to the economic downturn, both people’s incomes and the revenue of companies are declining, but daily household expenses such as electricity or gas bills still need to be paid. To better cope with them, we are reducing excise duty rates on gas and electricity for two years,” Helme explained.

Outside of the EU, the United Kingdom is saving its taxpayers between £15 and £20 million per year by walking back its plan to increase its carbon tax top-up, New Zealand’s cap and trade tax rate has fallen by more than 20 per cent this year and South Africa pushed back carbon tax payments by three months.

It’s worth noting that it’s unlikely Canada’s carbon tax will have any meaningful impact on global emissions. Only 45 countries (out of 195 countries worldwide) are covered by a carbon tax, and only 15.6 per cent of total emissions are covered by these carbon taxes, according to the World Bank. Furthermore, about half of the emissions covered by carbon taxes are priced below US$10/tCO2e – significantly lower than Canada’s federal rate and too low to make a difference.

With Canada only accounting for 1.5 per cent of global emissions, it’s easy to understand Trudeau’s acknowledgement that, “even if Canada stopped everything tomorrow, and the other countries didn’t have any solutions, it wouldn’t make a big difference.”

Now more than ever, Canadian taxpayers need relief. With carbon tax burdens declining around the globe during the COVID-19 crisis, walking back the recent carbon tax hike should be a no-brainer for our federal government.

Province of Alberta replies to Joe Biden’s promise to cancel Keystone XL

After 15 years as a TV reporter with Global and CBC and as news director of RDTV in Red Deer, Duane set out on his own 2008 as a visual storyteller. During this period, he became fascinated with a burgeoning online world and how it could better serve local communities. This fascination led to Todayville, launched in 2016.

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Taxpayers criticize Trudeau and Ford for Honda deal

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From the Canadian Taxpayers Federation

Author: Jay Goldberg

The Canadian Taxpayers Federation is criticizing the Trudeau and Ford governments to for giving $5 billion to the Honda Motor Company.

“The Trudeau and Ford governments are giving billions to yet another multinational corporation and leaving middle-class Canadians to pay for it,” said Jay Goldberg, CTF Ontario Director. “Prime Minister Justin Trudeau is sending small businesses bigger a bill with his capital gains tax hike and now he’s handing out billions more in corporate welfare to a huge multinational.

“This announcement is fundamentally unfair to taxpayers.”

The Trudeau government is giving Honda $2.5 billion. The Ford government announced an additional $2.5 billion  subsidies for Honda.

The federal and provincial governments claim this new deal will create 1,000 new jobs, according to media reports. Even if that’s true, the handout will cost taxpayers $5 million per job. And according to Globe and Mail investigation, the government doesn’t even have a proper process in place to track whether promised jobs are actually created.

The Parliamentary Budget Officer has also called into question the government’s claims when it made similar multi-billion-dollar handouts to other multinational corporations.

“The break-even timeline for the $28.2 billion in production subsidies announced for Stellantis-LGES and Volkswagen is estimated to be 20 years, significantly longer than the government’s estimate of a payback within five years for Volkswagen,” wrote the Parliamentary Budget Officer said.

“If politicians want to grow the economy, they should cut taxes and red tape and cancel the corporate welfare,” said Franco Terrazzano, CTF Federal Director. “Just days ago, Trudeau said he wants the rich to pay more, so he should make rich multinational corporations pay for their own factories.”

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UN plastics plans are unscientific and unrealistic

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News release from the Coalition of Concerned Manufacturers and Businesses of Canada

“We must focus on practical solutions and upgrading our recycling infrastructure, not ridiculous restrictions that will harm our health care system, sanitary food supply, increase costs and endanger Canadians’ safety, among other downsides.”

This week Ottawa welcomes 4,000 delegates from the United Nations to discuss how they will oversee a reduction and even possible elimination of plastics from our lives. The key problem is no one has ever figured out how they will replace this essential component of our modern economy and society. The Coalition of Concerned Manufacturers and Businesses of Canada (CCMBC) has launched an information campaign to discuss the realities of plastic, how it contributes massively to our society and the foolishness of those who think plastics can be eliminated or greatly reduced without creating serious problems for key industries such as health care, sanitary food provision, many essential consumer products and safety/protective equipment, among others. CCMBC President Catherine Swift said “The key goal should be to keep plastics in the economy and out of the environment, not eliminate many valuable and irreplaceable plastic items. The plastics and petrochemical industries represent about 300,000 jobs and tens of billions contribution to GDP in Canada, and are on a growth trend.”

The UN campaign to ban plastics to date has been thwarted by reality and facts. UN efforts to eliminate plastics began in 2017, motivated by such terrible images as rivers with massive amounts of floating plastic and animals suffering from negative effects of plastic materials. Although these images were dramatic and disturbing, they do not represent the big picture of what is really happening and do not take into account the many ways plastics are hugely positive elements of modern society. Swift added “Furthermore, Canada is not one of the problem countries with respect to plastics waste. Developing countries are the main culprits and any solution must involve helping the leading plastics polluters find workable solutions and better recycling technology and practices.”

The main goal of plastic is to preserve and protect. Can you imagine health care without sanitary, flexible, irreplaceable and recyclable plastic products? How would we keep our food fresh, clean and healthy without plastic wraps and packaging? Plastic replaces many heavier and less durable materials in so many consumer products too numerous to count. Plastics help the environment by reducing food waste, replacing heavier materials in automobiles and other products that make them more energy-efficient. Many plastics are infinitely recyclable and innovations are taking place to improve them constantly. What is also less known is that most of the replacements for plastics are more expensive and actually worse for the environment.

Swift stated “Environment Minister Steven Guilbeault has been convinced by the superficial arguments that plastics are always bad despite the facts. He has pursued a campaign against all plastics as a result, without factoring in the reality of the immense value of plastic products and that nothing can replace their many attributes. Fortunately, the Canadian Federal court overturned his absurd ban on a number of plastic products on the basis that it was unscientific, impractical and impinged upon provincial jurisdiction.” Sadly, Guilbeault and his Liberal cohorts plan to appeal this legal decision despite its common-sense conclusions. Opinion polls of Canadians show that a strong majority would prefer this government abandon its plastics crusade at this point, but history shows these Liberals prefer pursuing their unrealistic and costly ideologies instead of policies that Canadians support.

The bottom line is that plastics are an essential part of our modern society and opposition has been based on erroneous premises and ill-informed environmentalist claims. Swift concluded “Canada’s record on plastics is one of the best in the world. This doesn’t mean the status quo is sufficient, but we must focus on practical solutions and upgrading our recycling infrastructure, not ridiculous restrictions that will harm our health care system, sanitary food supply, increase costs and endanger Canadians’ safety, among other downsides.” The current Liberal government approach is one that has no basis in fact or science and emphasizes virtue-signaling over tangible and measurable results.  Swift noted “The UN’s original founding purpose after World War II was to prevent another world war. Given our fractious international climate, they should stick to their original goal instead of promoting social justice warrior causes that are unhelpful and expensive.”

The CCMBC was formed in 2016 with a mandate to advocate for proactive and innovative policies that are conducive to manufacturing and business retention and safeguarding job growth in Canada.

SOURCE Coalition of Concerned Manufacturers and Businesses of Canada

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