Trudeau Announces Massive Carbon-Tax Hike
Back in April we reported on the Trudeau government's odd decision to go ahead with their plan to double the federal tarbon Tax in the early days of the Covid-19 pandemic that had wreaked havoc on the Canadian economy. Why, we wondered, would they push forward with a plan that would make the lives of regular Canadians more expensive at a time when so many people were losing their jobs? Why add a further layer of uncertainty to an already unstable market?
Unfortunately the prime minister's instincts haven't improved in the past nine months. While we have a much clearer picture of the virus than we had at the time, and improved treatments as well, the Canadian economy has been slowly strangled by government imposed lockdowns.
Justin Trudeau has attempted to counter this by increasing spending, which he's financed by massively increasing public debt. According to the Fraser Institute's Livio di Matteo, "federal net debt for 2019-20 was close to $800 billion and for 2020-21 will likely exceed $1.1 trillion." Provincial debt too has significantly increased, from $700 billion to over $800 billion, and the two combined are nearing 90 percent of GDP, a level not seen since the debt crisis of the early 1990s. Just as in that crisis, Canada has already seen its credit rating downgraded.
But even as things get increasingly desperate, the Trudeau government has refused to tap the breaks on his disastrous climate agenda even slightly.
Just the opposite, in fact. For the most recent example, today the government released its newest climate plan, entitled "A Healthy Environment and A Healthy Economy." Its goal is "to dramatically reduce greenhouse gas emissions by 2030," and it proposes to do this by, first, increasing (debt-financed) spending by $15 billion, and second by dramatically increasing the carbon tax.
The tax had been projected to increase from its current level of $30 per ton to $50 by 2022. According to the new plan, however, that amount will jump by $15 every year until it reaches $170 per ton in 2030, with the object of "wean[ing] consumers off fossil fuels in favour of cleaner energy sources." Of course, those cleaner energy sources don't yet exist, at least not in forms that would allow them to replace fossil fuels. (Also they aren't really cleaner).
It is interesting to note that even the CBC, Trudeau's cheerleading news organization that it is, does mention the impact this will have on Canadian consumers:
The tax hike will result in higher costs for consumers when they buy gasoline. The price at the pump will increase by 37.57 cents a litre by 2030 as a result of this new plan, and the cost of light fuel oil for home heating, natural gas and propane will rise as well.
The current average gas price in Ontario is $1.19 per liter, so a 38-cent increase is massive. And of course the price for heating homes and businesses in one of the most northerly nations in the world will also increase significantly.
Right now Canada is being crushed under the weight of the pandemic and the lockdowns. The Trudeau government is insisting on increasing the load. Will Canadians ever say, enough?