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Carbon tax costs Canadian economy $12 billion this year

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From the Canadian Taxpayers Federation

Author: Franco Terrazzano

The Canadian Taxpayers Federation estimates the carbon tax will cost the Canadian economy $12 billion in 2024, based on data published by Environment and Climate Change Canada.

“The government’s own data shows the carbon tax costs our economy billions of dollars every year,” said Franco Terrazzano, CTF Federal Director. “Prime Minister Justin Trudeau should immediately make life more affordable and help the economy by scrapping his carbon tax.”

The government of Canada released data modelling the economic cost of the carbon tax between 2018 and 2030. Based on this data, the CTF estimates the carbon tax will cost the Canadian economy $12 billion in 2024, or an estimated $295 per person.

In 2030, the carbon tax will cost the Canadian economy $30 billion, or an estimated $678 per person based on Statistics Canada population projections.

The economic cost is the difference between what GDP would be without the carbon tax minus the projected GDP with the carbon tax.

The table at the end of this news release breaks down the economic cost to each province and territory and the economic cost per person this year.

“The carbon tax costs Canadians big time for gas, home heating bills and everything else,” Terrazzano said. “And the carbon tax is a huge drag on the Canadian economy that we just can’t afford.”

Economic cost of carbon tax (2023 $)

Region Economic cost 2024 Per person economic cost 
Canada

$11.9 billion

 $295

British Columbia

$1.7 billion

 $311

Alberta

$1.8 billion

 $372

Saskatchewan

$476 million

 $390

Manitoba

$216 million

 $150

Ontario

$4.1 billion

 $258

Quebec

$3.2 billion

 $361

New Brunswick

$137 million

 $169

Nova Scotia

$103 million

 $99

Prince Edward Island

$22 million

 $122

Newfoundland and Labrador

$143 million

 $274

Northwest Territories

-$15 million

-$324

Yukon

$6 million

 $136

Nunavut

$14 million

 $352

Note: A negative figure represents an economic benefit.

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Alberta

Taxpayers: Alberta drivers need a gas tax break for summer

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From the Canadian Taxpayers Federation

Author: Kris Sims

“Alberta families packing up the minivan to go visit the grandparents in Manitoba will be shocked to see a much lower gas price over there, thanks to that NDP government’s lower fuel taxes”

The Canadian Taxpayers Federation is urging the Alberta government to give drivers a break on fuel taxes as the summer road trip season kicks off.

“Alberta families packing up the minivan to go visit the grandparents in Manitoba will be shocked to see a much lower gas price over there, thanks to that NDP government’s lower fuel taxes,” said Kris Sims, CTF Alberta Director. “Premier Danielle Smith did the right thing when she suspended the Alberta fuel tax for a year. It saved families so much money and it would be a good thing for her to do that again for the summer.”

In January 2023, the Alberta government fully suspended the provincial fuel tax for a year, saving drivers 13 cents per litre of gasoline and diesel.

On average, that tax suspension saved Alberta drivers about $10 filling up a minivan and about $15 filling up a pickup truck.

On April 1, 2024, the Alberta government hiked the tax back up to 13 cents per litre, on the same day Prime Minister Justin Trudeau increased the federal carbon tax to 17 cents per litre of gasoline and 21 cents per litre of diesel.

Manitoba NDP Premier Wab Kinew fully suspended his province’s 15 cent per litre fuel tax on Jan. 1, 2024. He has now extended it to at least September.

Ontario PC Premier Doug Ford has kept his provincial fuel tax partially suspended, saving five cents per litre for more than two years.

Alberta’s fiscal update is expected to be released by the Alberta government soon, a time that often includes updates on affordability actions by the government, including tax relief.

“Albertans are still waiting for their provincial income tax cut and they are paying the full price at the pump for the provincial fuel tax, so it’s tough for them to feel the Albera Advantage right about now,” said Sims. “The Alberta government needs to make good on its promise of lower taxes and drivers should be given lower fuel taxes at the pumps this summer.”

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Canadian Constitution Foundation in court this week intervening in “plastics ban” case

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From the Canadian Constitution Foundation

“In this case, criminal law power should not be allowed to justify the sweeping inclusion of every imaginable plastic product on the list of ‘toxic’ substances and therefore under the umbrella of federal authority,” … “The Cabinet Order plastic ban is outside the scope of the federal power.”

The Canadian Constitution Foundation (CCF) is appearing as an intervener in the legal challenge to the federal “plastics ban” being heard on June 25 and 26 at the Federal Court of Appeal. The CCF will be arguing that the federal “plastics ban” is outside the jurisdiction of Parliament’s criminal law power.

In November 2023, a Federal Court of Canada judge struck down the Trudeau government’s Cabinet Order declaring all “plastic manufactured items” as “toxic” under the List of Toxic Substances in Schedule 1 of the Canadian Environmental Protection Act. The Order had been challenged by a coalition of plastics companies who had argued that the Order was unreasonable and unconstitutional.

The appeal of that decision is now being heard at the Federal Court of Appeal. At issue is the scope of the federal law power. Section 91(27) of the Constitution Act grants the federal government exclusive authority to make criminal law. Previous court rulings have found and affirmed that prohibiting truly toxic substances, like lead and mercury, under the Canadian Environmental Protection Act is a legitimate expression of that power. But the criminal law power cannot be used to justify the sweeping inclusion of every imaginable plastic product onto the list of “toxic” substances and therefore under federal authority.

CCF Litigation Director, Christine Van Geyn said: “The criminal law power is not a magical incantation. Invoking the words ‘criminal law’ does not transform any issue into something Ottawa can regulate.”

“In this case, criminal law power should not be allowed to justify the sweeping inclusion of every imaginable plastic product on the list of ‘toxic’ substances and therefore under the umbrella of federal authority,” Van Geyn added “The Cabinet Order plastic ban is outside the scope of the federal power.”

The CCF is intervening in the case to argue about the scope of federal criminal law power. Criminal law powers should be applied cautiously. To claim authority to regulate something based on federal criminal law power, Parliament must clearly demonstrate the criminal aspect of the targeted activities. The federal government cannot assume control over an entire area which is not, in itself, harmful or dangerous. This is particularly important when Parliament has asserted control and jurisdiction over an amorphous subject matter prone to overlapping jurisdictions, like environmental regulation.

The Canadian Constitution Foundation is represented in its intervention by Brett Carlson and Rebecca Lang of Borden Ladner Gervais LLP.

You can read the CCF’s intervener factum here.

Christine Van Geyn
Canadian Constitution Foundation

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