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Opinion

PBO Report Reveals Trudeau’s Carbon Tax Crushes Middle-Class Canadians

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7 minute read

The Opposition with Dan Knight

PBO Report Exposes Trudeau’s Carbon Tax as a Middle-Class Burden, With Net Economic Losses, Crushed Job Prospects, and Hollow Rebates

In a bombshell report dated October 10, 2024, the Parliamentary Budget Officer (PBO) exposes the cold reality of Trudeau’s carbon tax policy: it’s making life harder for middle-class Canadians. While the Prime Minister continues to tout the virtues of his climate plan, the PBO’s findings show that far from protecting the environment, the federal fuel charge is crippling Canadian families—especially those in the middle income brackets.

Let’s be clear: Trudeau’s carbon tax isn’t just a simple “polluter pays” system. According to the PBO’s distributional analysis of the federal fuel charge, average Canadian households will face substantial net economic costs by 2030, despite government-issued rebates. Trudeau loves to parade the fact that Canadians get rebates through the Canada Carbon Rebate (CCR), but the numbers tell a different story when you dig into the real economic impact.

The Middle-Class Burden

For middle-class Canadians, the so-called “climate action” of the Trudeau government comes with serious consequences. By 2030-31, the carbon price will hit $170 per tonne, with devastating effects on household incomes. Even though rebates are supposed to offset the pain, the PBO’s analysis shows that once you factor in the economic fallout—job losses, reduced wages, and weaker investments—middle-class families end up worse off.

For example, in Ontario, a province Trudeau regularly visits to promote his policies, middle-income households will face steep costs. According to the PBO, households in the third quintile (middle income) will see $588 in net costs—and that’s just after factoring in rebates. When you look at the combined hit from job losses and reduced income, the overall financial burden for middle-class families grows even larger​.

In Saskatchewan, things are even more dire. The average household in the third income quintile will suffer from a $1,205 net loss by 2030-31. For working families who depend on stable employment in energy, agriculture, and manufacturing, this tax punishes them more than it rewards them​.

Trudeau’s Rebate Shell Game

Trudeau’s government spins the carbon rebate as some kind of economic miracle, suggesting families get back more than they pay. But as the PBO’s report shows, this claim is little more than political smoke and mirrors. The rebates might look good on paper for the lowest-income Canadians, but for everyone else—especially middle-income earners—it’s a losing game.

Even with rebates factored in, the economic damage of Trudeau’s carbon tax results in net losses for most families. By 2030, the federal fuel charge will contribute to an overall reduction of 0.6% in real GDP across the backstop provinces, which excludes Quebec and British Columbia. Middle-class families are stuck dealing with reduced employment opportunities, lower investment incomes, and weaker wage growth—all while Trudeau’s elite friends and the liberal establishment pat themselves on the back for “going green”​​.

Crushing Investments and Jobs

What Trudeau doesn’t want you to know is that this tax doesn’t just hurt family finances. It’s killing jobs. The PBO report shows that by 2030, the carbon tax will reduce capital income—that’s the money people earn from investments—by as much as 2.4% in provinces like Alberta. Worse, it will slash labor income—the wages people depend on—by over 1.4% in places like Saskatchewan. That’s devastating for middle-income earners whose livelihoods depend on industries targeted by the Liberals’ climate agenda​.

While low-income Canadians might see minimal gains from Trudeau’s rebates, middle-class families face the harsh reality of stagnant wages, diminished savings, and a lack of economic opportunity. Trudeau’s tax isn’t just a burden on polluters, it’s a punishment for working Canadians trying to get by.

A Failed Experiment – Just Look at British Columbia

If you want to see where Trudeau’s carbon tax will lead, just look at British Columbia. They’ve had a carbon tax since 2008, and it hasn’t stopped a single wildfire, flood, or heat dome. Did that carbon tax prevent the devastating atmospheric river? Not a chance. This so-called climate solution has done nothing to shield British Columbians from environmental disasters.

Even worse, while the federal government has been collecting billions in carbon tax revenue, they’ve neglected to address the fuel buildup in forests around places like Jasper. For years, experts have warned about the dangers, and yet not a dime of that tax money was spent on controlled burns or preventive measures. The result? Our beautiful Jasper National Park was left to burn. Trudeau and his government couldn’t save our park, they couldn’t save our forests, and they certainly couldn’t save Jasper​.

A Sacrifice for Nothing

My fellow Canadians, governments have been trying to control the weather since the dawn of time. Ancient civilizations sacrificed animals to the gods, hoping for good weather. Today, the sacrifice is your money. Yesterday, it was a goat to Zeus; today, it’s a carbon tax to Trudeau. In the end, it’s just another way for the government to take from you, promising it will fix things it simply cannot control.

But here’s the truth: this tax won’t change the climate, won’t stop the floods, and certainly won’t bring back our forests. The only thing it’s doing is draining your household to feed a bloated government. The PBO report is clear: Trudeau’s carbon tax is hurting middle-class families while delivering nothing in return.

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2025 Federal Election

The Liberals torched their own agenda just to cling to power

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This article supplied by Troy Media.

Troy Media By Pat Murphy

The Liberals just proved they’ll do anything to win, including gutting key Trudeau-era policies

With the general election safely in the rear-view mirror, here are some observations.

The Liberal will to power

To me, the most surreal moment came during Mark Carney’s speech on the night he won the Liberal leadership. Raucous cheers ensued when he
declared the abolition of the consumer carbon tax and the retreat from the increase in capital gains inclusion rates. If you knew nothing about Canadian politics, you’d think this jubilation was in response to the assertion of long-cherished Liberal policies and principles.

But, of course, it was nothing of the sort.

In fact, the policies being jettisoned were Liberal in origin and had been hitherto fiercely defended. If you criticized the carbon tax, you were labelled a climate change “denier.” And if you were opposed to the capital gains changes, you were indifferent to increased inequality, the spread of child poverty and various other social ills.

This ability to shamelessly execute dramatic policy flips is indicative of the Liberals’ intense passion for power. And however cynical it may be, it’s one of the keys to their status as Canada’s “natural governing party.”

Thus we have Mark Carney presenting as someone who “just got here,” a tactic designed to disassociate himself from the previous Liberal government. It was  immaterial that he was an adviser to that same government, has stocked his team with its alumni and was an early advocate of carbon taxes. Instead of the enthusiastic net-zero hawk, he ran as the sober, economics-savvy technocrat whose banking and private sector experience is tailor-made for the current trade-war turbulence.

Does this mean that Carney has abandoned the ideological agenda of his unpopular Liberal predecessor? Not necessarily—and probably not at all.
Still, it worked politically. Will to power isn’t something to be sneezed at.

Conservative blues

There’s no sugar-coating the fact that it’s been a deeply disappointing election for the Conservatives. After being the “inevitable” government-in-waiting just four months ago, the combination of Justin Trudeau’s departure and Donald Trump’s trade war totally upended the electoral landscape. And to add insult to injury, their leader, Pierre Poilievre, lost his seat. That said, not everything is doom and gloom.

Compared to the actual results from the previous (2021) election, the Conservatives gained 25 seats. Or if you prefer adjusting the 2021 results to
reflect the new electoral boundaries, the seat gain comes to 18. Either way, the direction is non-trivially positive.

The popular vote share of 41.4 per cent is similarly impressive. Looking over the past 60 years, the Conservative median vote was in the 35 to 36 per cent range. You might call that their natural base. Only Brian Mulroney’s fragile coalition ever brought them north of 40 per cent.

And as Poilievre has been criticized for simply playing to the base, it’s fair to ask whether 41 per cent or thereabouts is the party’s new base. If it is, the
Conservative future is potentially promising.

Mind you, Poilievre might not be around to personally reap the rewards.

The NDP debacle

It was the worst of times for the NDP. Their support collapsed, dropping to its lowest ever level in terms of vote share, and they lost official party status. In the process, they shed over 70 per cent of their caucus and were wiped out in voter rich Ontario. Some of this misfortune may be attributed to their propping up the Trudeau government, thus tending to blur the difference between the two parties. So when Trump’s trade war hit, it was easy for NDP voters to flee to Carney’s perceived safe pair of hands.

To the extent that’s true, there’s a historical echo. Between 1972 and 1974, the NDP supported Pierre Trudeau’s Liberal minority in return for various policy concessions. Then the Liberals pulled the plug, winning a majority in the ensuing election while the NDP lost almost half of their seats. It was that will to power again!

This underlines the dilemma confronting parties like the NDP. Do they want to ruthlessly compete for power? Or are they content with shaping public debate, gradually making once-radical ideas seem mainstream and pushing the boundaries of what society sees as politically acceptable?

It’s a very real—and honourable—trade-off choice.

The pollsters

In a post-election interview, poll aggregator Philippe J. Fournier was generally satisfied with his model’s performance. And if you take margins of error into account, he was justified in doing so.

Nonetheless, his final projection had the Liberals at 186 seats and the Conservatives at 124. The respective actuals were 169 and 144. And he
significantly underestimated the Conservatives in Ontario while overestimating the Liberals in Alberta.

Vindication is sometimes in the eye of the beholder.

Troy Media columnist Pat Murphy casts a history buff’s eye at the goings-on in our world. Never cynical – well, perhaps a little bit.

The views, opinions, and positions expressed by our columnists and contributors are solely their own and do not necessarily reflect those of our publication.

Troy Media empowers Canadian community news outlets by providing independent, insightful analysis and commentary. Our mission is to support local media in helping Canadians stay informed and engaged by delivering reliable content that strengthens community connections and deepens understanding across the country.

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Business

Canada urgently needs a watchdog for government waste

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This article supplied by Troy Media.

Troy Media By Ian Madsen

From overstaffed departments to subsidy giveaways, Canadians are paying a high price for government excess

Canada’s federal spending is growing, deficits are mounting, and waste is going unchecked. As governments look for ways to control costs, some experts say Canada needs a dedicated agency to root out inefficiency—before it’s too late

Not all the Trump administration’s policies are dubious. One is very good, in theory at least: the Department of Government Efficiency. While that
term could be an oxymoron, like ‘political wisdom,’ if DOGE proves useful, a Canadian version might be, too.

DOGE aims to identify wasteful, duplicative, unnecessary or destructive government programs and replace outdated data systems. It also seeks to
lower overall costs and ensure mechanisms are in place to evaluate proposed programs for effectiveness and value for money. This can, and often does, involve eliminating departments and, eventually, thousands of jobs. Some new roles within DOGE may need to become permanent.

The goal in the U.S. is to reduce annual operating costs and ensure government spending grows more slowly than revenues. Washington’s spending has exploded in recent years. The U.S. federal deficit now exceeds six per cent of gross domestic product. According to the U.S. Treasury Department, the cost of servicing that debt is rising at an unsustainable rate.

Canada’s latest budget deficit of $61.9 billion in fiscal 2023-24 amounts to about two per cent of GDP—less alarming than our neighbour’s situation, but still significant. It adds to the federal debt of $1.236 trillion, about 41 per cent of our estimated $3 trillion GDP. Ottawa’s public accounts show expenses at 17.8 per cent of GDP, up from about 14 per cent just eight years ago. Interest on the growing debt accounted for 9.1 per cent of
revenues in the most recent fiscal year, up from five per cent just two years ago.

The Canadian Taxpayers Federation (CTF) consistently highlights dubious spending, outright waste and extravagant programs: “$30 billion in subsidies to multinational corporations like Honda, Volkswagen, Stellantis and Northvolt. Federal corporate subsidies totalled $11.2 billion in 2022 alone. Shutting down the federal government’s seven regional development agencies would save taxpayers an estimated $1.5 billion annually.”

The CTF also noted that Ottawa hired 108,000 additional staff over the past eight years, at an average annual cost of more than $125,000 each. Hiring based on population growth alone would have added just 35,500 staff, saving about $9 billion annually. The scale of waste is staggering. Canada Post, the CBC and Via Rail collectively lose more than $5 billion a year. For reference, $1 billion could buy Toyota RAV4s for over 25,600 families.

Ottawa also duplicates functions handled by provincial governments, often stepping into areas of constitutional provincial jurisdiction. Shifting federal programs in health, education, environment and welfare to the provinces could save many more billions annually. Poor infrastructure decisions have also cost Canadians dearly—most notably the $33.4 billion blown on what should have been a relatively simple expansion of the Trans Mountain pipeline. Better project management and staffing could have prevented that disaster. Federal IT systems are another money pit, as shown by the $4-billion Phoenix payroll debacle. Then there’s the Green Slush Fund, which misallocated nearly $900 million.

Even more worrying, the rapidly expanding Old Age Supplement and Guaranteed Income Security programs are unfunded, unlike the Canada Pension Plan. Their combined cost is already roughly equal to the federal deficit and could soon become unmanageable.

Canada is sleepwalking toward financial ruin. A Canadian version of DOGE—Canada Accountability, Efficiency and Transparency Team, or CAETT—is urgently needed. The Office of the Auditor General does an admirable job identifying waste and poor performance, but it’s not proactive and lacks enforcement powers. At present, there is no mechanism in place to evaluate or eliminate ineffective programs. CAETT could fill that gap and help secure a prosperous future for Canadians.

Ian Madsen is a senior policy analyst at the Frontier Centre for Public Policy.

The views, opinions, and positions expressed by our columnists and contributors are solely their own and do not necessarily reflect those of our publication.

© Troy Media

Troy Media empowers Canadian community news outlets by providing independent, insightful analysis and commentary. Our mission is to support local media in helping Canadians stay informed and engaged by delivering reliable content that strengthens community connections and deepens understanding across the country.

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