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Chrystia Freeland refuses to answer how much Trudeau government has collected via carbon tax

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From LifeSiteNews

By Clare Marie Merkowsky

Deputy Prime Minister and Finance Minister Chrystia Freeland continues to claim that the revenue from the carbon tax ‘goes back to Canadians’ despite data showing otherwise.

Canadian Deputy Prime Minister and Finance Minister Chrystia Freeland has refused to reveal how much Liberals have collected via the unpopular carbon tax, which is set to go up again on April 1.  

During a March 21 session in the House of Commons, Conservative Member of Parliament (MP) Marty Morantz questioned Freeland regarding how much the Liberal government has taken in through the carbon tax.  

“How much has your government collected in carbon taxes?” Morantz asked.  

Freeland responded by dodging the question, stating, “[This is] also an opportunity for me to point out that Manitoba families will be getting $1,200 this year.” 

“Again, minister, if I could just have the number [of] how much you’ve collected in carbon taxes,” Morantz pressed. 

Freeland again refused to answer, instead claiming that the “key point” is that the “price on pollution” is “revenue neutral.”

As Morantz persisted in his question, Freeland alleged that the revenue from the carbon tax is “all money that goes back to Canadians.” 

However, this statement has been proven untrue as the Parliamentary Budget Officer recently revealed that the government rebates are insufficient to cover the rising costs of fuel under Trudeau’s carbon tax, causing many to wonder where their money is actually going.

According to records published in December, the carbon tax cost Canadians nearly $200 million in paperwork since Prime Minister Justin Trudeau introduced the fuel charge in 2019. 

The costs are only expected to rise, as a recent report revealed that a carbon tax of more than $350 per tonne is needed to reach Trudeau’s net-zero goals by 2050.   

Currently, Canadians living in provinces under the federal carbon pricing scheme pay $65 per tonne, but the Trudeau government has a goal of $170 per tonne by 2030.    

Additionally, Trudeau has refused to pause the carbon tax hike scheduled for April 1, despite seven out of ten provincial premiers and 70 percent of Canadians pleading with him to halt his plan.   

Meanwhile, Trudeau and his cabinet continue to attend lavish retreats, with a recent Liberal retreat costing taxpayers nearly $500,000.   

During a media interview following the nearly $500,000 retreat, Trudeau told Canadians struggling with the high cost of living that times are also difficult for politicians.  

“Yeah, people are facing tough times, and yes, everyone is finding it difficult right now. And as leaders, MPs, parliamentarians of all types, part of our job is to be there to take it, to support it as Canadians are worried and anxious, and put out those solutions,” he said.   

“So yeah, it’s not an easy time to be a politician,” Trudeau lamented.

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Automotive

Biden’s Climate Agenda Is Running Headfirst Into A Wall Of His Own Making

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From the Daily Caller News Foundation

By WILL KESSLER

 

President Joe Biden’s administration unveiled tariffs this week aimed at boosting domestic production of green energy technology, but the move could end up hamstringing his larger climate goals.

The tariffs announced on Tuesday quadruple levies for Chinese electric vehicles (EVs) to 100% and raise rates for certain Chinese green energy and EV components like minerals and batteries. Biden has made the transition to green energy and EVs a key part of his climate agenda, but hiking tariffs on those products to help U.S. manufacturing could jack up prices on the already costly products, slowing adoption by struggling Americans, according to experts who spoke to the DCNF.

The risks posed by hiking levies on green technology expose the inherent tension between Biden’s climate agenda and his efforts to protect American industry, which often struggles to compete with cheap foreign labor. Items on his climate agenda typically raise costs, and requiring companies to comply could make them uncompetitive on the world stage.

“These tariffs are a classic example of the Biden administration’s left hand not knowing what the right hand is doing,” E.J. Antoni, a research fellow at the Heritage Foundation’s Grover M. Hermann Center for the Federal Budget, told the DCNF. “The inability to import Chinese-made EVs due to prohibitively high costs will necessitate importing raw materials and parts for EVs from China. Since automakers can’t afford to build and assemble the vehicles here, prices will have to rise. In other words, American consumers will pay the cost of this tariff, not the Chinese.”

The White House, in its fact sheet, pointed to China artificially lowering its prices and dumping goods on the global market as the justification for the new tariffs in an effort to help protect American businesses. China has pumped huge subsidies into its own EV industry and supply lines over the past few years, spawning a European Union investigation into vehicles from the country.

“Tariffs on Chinese EVs won’t just make Chinese EVs more expensive, they will also make American EVs more expensive,” Ryan Young, senior economist at the Competitive Enterprise Institute, told the DCNF. “This is because domestic producers can now raise their prices without fear of being undercut by competitors. Good for them but bad for consumers — and for the Biden administration’s policy goal of increased EV adoption.”

Several American manufacturers are already struggling to sell EVs at a profit, with Ford losing $4.7 billion on its electric line in 2023 while selling over 72,000 of the vehicles. To ease price concerns and increase EV adoption, the Biden administration created an EV tax credit of $7,500 per vehicle, depending on where its parts are made.

The market share of EVs out of all vehicles fell in the first quarter of 2024 from 7.6% to 7.1% as consumers opted to buy cheaper traditional vehicles instead. Growth in EV sales increased by just 2.7% in the quarter, far slower than the 47% growth that the industry saw in all of 2023.

The Biden administration has also sought to use regulations to push automakers toward electrifying their offerings as consumers refuse to voluntarily adopt EVs, finalizing rules in March that effectively require around 67% of all light-duty vehicles sold after 2032 to be electric or hybrids.

“By raising the price — and thereby stunting the deployment — of EVs, the tariffs undermine the Biden administration’s stated goals of reducing carbon emissions (as many U.S. environmentalists and EV fans have recently lamented),” Clark Packard, research fellow in the Herbert A. Stiefel Center for Trade Policy Studies at the Cato Institute, wrote following the announcement. “The EV tariffs (and also-​announced solar tariffs) would continue the administration’s habit of choosing politics and protectionism over their environmental agenda.”

Despite the subsidies, the 25% tariff that is currently in place for Chinese EVs already prices the product out of the U.S. market, resulting in no Chinese-branded EVs being sold in the country, according to Barron’s. Only a handful of the more than 100 EV models being sold in China appeal to American consumers, and none of them can compete under current levies.

“Something like this happened just a few years ago when former president Donald Trump enacted 25% steel tariffs in 2018,” Young told the DCNF. “Domestic steel producers raised their prices by almost exactly the amount of the tariff, and America soon had the world’s highest steel prices. As a result, car prices went up by about $200 to $300 on average. Larger trucks with more steel content increased even more. Now Biden is going to do the same thing to EVs.”

In the year following the increase in steel tariffs under the Trump administration, U.S. Steel’s operating profit rose 38%, prices were hiked 5 to 10% and revenue was up 15% due to reduced competition, according to CNN.

Despite the massive tariff hike on EVs, Biden only raised the tariff rate on Chinese lithium-ion EV batteries and battery parts to 25%, according to the White House. The tariff rate on certain essential minerals, like natural graphite, was also hiked to just 25%.

“Despite rapid and recent progress in U.S. onshoring, China currently controls over 80% of certain segments of the EV battery supply chain, particularly upstream nodes such as critical minerals mining, processing, and refining,” the White House wrote in its fact sheet. “Concentration of critical minerals mining and refining capacity in China leaves our supply chains vulnerable and our national security and clean energy goals at risk.”

China has broad control over the majority of minerals necessary to construct EVs, possessing nearly 90% of the world’s mineral refining capacity. Sources of the required minerals often also have serious human rights concerns, such as the world’s supply of cobalt, which has widespread ties to child labor.

Biden attacked former President Donald Trump during the 2020 election for the broad tariffs that he put on Chinese goods, noting that “any freshman econ student” could point out that the costs of the tariffs would be passed on to American consumers.

EV makers have increasingly struggled over the past year to maintain profits amid stalling demand, with the largest American EV manufacturer, Tesla, reporting a 10% drop in year-over-year revenue in the first quarter of 2024. Tesla is one of several EV makers that have announced layoffs in recent months.

“Fortunately, the EV market is still small in the U.S. and Chinese EVs are an even smaller slice of that small pie,” Antoni told the DCNF. “Even if the EV market in the U.S. were large, these tariffs would not help the domestic EV industry. While consumer demand for EVs would shift to domestic models, an increase in domestic production would rely on very expensive inputs from China, cutting into profits.”

The White House did not respond to a request to comment from the DCNF.

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Automotive

Governments in Canada accelerate EV ‘investments’ as automakers reverse course

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From the Fraser Institute

By Kenneth P. Green

Evidence continues to accrue that many of these “investments,” which are ultimately of course taxpayer funded, are risky ventures indeed.

Even as the much-vaunted electric vehicle (EV) transition slams into stiff headwinds, the Trudeau government and Ontario’s Ford government will pour another $5 billion in subsidies into Honda, which plans to build an EV battery plant and manufacture EVs in Ontario.

This comes on top of a long list of other such “investments” including $15 billion for Stellantis and LG Energy Solution, $13 billion for Volkswagen (with a real cost to Ottawa of $16.3 billion, per the Parliamentary Budget Officer), a combined $4.24 billion (federal/Quebec split) to Northvolt, a Swedish battery maker, and a combined $644 million (federal/Quebec split) to Ford Motor Company to build a cathode manufacturing plant in Quebec.

All this government subsidizing is of course meant to help remake the automobile, with the Trudeau government mandating that 100 per cent of new passenger vehicles and light trucks sold in Canada be zero-emission by 2035. But evidence continues to accrue that many of these “investments,” which are ultimately of course taxpayer funded, are risky ventures indeed.

As the Wall Street Journal notes, Tesla, the biggest EV maker in the United States, has seen its share prices plummet (down 41 per cent this year) as the company struggles to sell its vehicles at the pace of previous years when first-adopters jumped into the EV market. Some would-be EV makers or users are postponing their own EV investments. Ford has killed it’s electric F-150 pickup truck, Hertz is dumping one-third of its fleet of EV rental vehicles, and Swedish EV company Polestar dropped 15 per cent of its global work force while Tesla is cutting 10 per cent of its global staff.

And in the U.S., a much larger potential market for EVs, a recent Gallup poll shows a market turning frosty. The percentage of Americans polled by Gallup who said they’re seriously considering buying an EV has been declining from 12 per cent in 2023 to 9 per cent in 2024. Even more troubling for would-be EV sellers is that only 35 per cent of poll respondents in 2024 said they “might consider” buying an EV in the future. That number is down from 43 per cent in 2023.

Overall, according to Gallup, “less than half of adults, 44 per cent, now say they are either seriously considering or might consider buying an EV in the future, down from 55 per cent in 2023, while the proportion not intending to buy one has increased from 41 per cent to 48 per cent.” In other words, in a future where government wants sellers to only sell EVs, almost half the U.S. public doesn’t want to buy one.

And yet, Canada’s governments are hitting the gas pedal on EVs, putting the hard-earned capital of Canadian taxpayers at significant risk. A smart government would have its finger in the wind and would slow down when faced with road bumps. It might even reset its GPS and change the course of its 2035 EV mandate for vehicles few motorists want to buy.

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