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Opinion

Feds facing the consequences of the costly carbon tax

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4 minute read

From the Canadian Taxpayers Federation

Author: Gage Haubrich

Ottawa unveiled an unorthodox carbon tax communications strategy in Saskatchewan: threats.

Saskatchewan minister responsible for SaskEnergy, Dustin Duncan, recently announced that the Saskatchewan government will not be sending the federal government money to cover its refusal to charge Saskatchewanians the carbon tax on home heating.

In October, Saskatchewan announced that it would stop collecting the federal carbon tax on home heating in the province. The provincial government estimates this will save the average family who uses natural gas to heat their home $400 this year. That’s enough to pay for a couple trips to the grocery store, and with the current prices at the store, families need all the relief they can get.

In response, federal Minister of Energy and Natural Resources Jonathan Wilkinson shot back  at Saskatchewan, announcing that because of this decision, Saskatchewanians will no longer be receiving the federal government’s carbon tax rebate.

Premier Scott Moe then pointed out the absurdity of the feds by highlighting that Saskatchewanians are still paying the carbon tax on gas, diesel and propane.

This whole mess started because Prime Minister Justin Trudeau backpedalled on his carbon tax and decided take it off heating oil. It’s a fuel primarily used in Atlantic Canada and used by almost zero Saskatchewanians.

Despite the exemption in Atlantic Canada being very similar to Premier Scott Moe’s plan in Saskatchewan, Atlantic Canadians are still on track to receive carbon tax rebates. And Quebec, which pays a lower carbon tax than the rest of the country, hasn’t faced the wrath of the federal government either.

Ottawa instead decided to pick a fight with Saskatchewan. It’s fight that won’t win them any favours in the province. At this point, it’s a good bet the Winnipeg Blue Bombers are more popular in Saskatchewan than the Liberals.

But not do outdo even himself, Wilkinson also added, “The rebate actually provides more money for most families in Saskatchewan.”

If only that were true.

Currently, the carbon tax costs 14 cents per litre of gasoline and will cost the average Saskatchewan family $410 this year, according to the Parliamentary Budget Officer.

Oh, and that’s including the rebates that Wilkinson is currently threatening to withhold.

Along with the carbon tax, Ottawa also charges a 10 cents per litre federal tax gas tax and then GST on top of the whole price of the gas, including the carbon tax. That means you are paying about two cents per litre in tax-on-tax in GST every time you fill up your vehicle.

And it’s going to get worse because the federal government plans to keep hiking up the carbon tax.

Come April 1, the carbon tax cost jumps to 17 cents per litre. By 2030, it will be 37 cents per litre and cost the average Saskatchewan household $1,723 per year.

And since almost everything we buy is delivered by a truck and then stored inside a store, the costs to transport and sell those items also goes up with the carbon tax.

After the announcement of the carbon tax heating oil exemption, five premiers, including Moe, wrote to Trudeau demanding that he take the carbon tax off all forms of home heating. It’s good to see premiers across the country take a stand, but Moe is the only one taking real action.

Instead of resorting to threats, maybe Ottawa should take the hint and scrap the carbon tax.

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Addictions

So What ARE We Supposed To Do With the Homeless?

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The Audit

David Clinton

 

Involuntary confinement is currently enjoying serious reconsideration

Sometimes a quick look is all it takes to convince me that a particular government initiative has gone off the rails. The federal government’s recent decision to shut down their electric vehicle subsidy program does feel like a vindication of my previous claim that subsidies don’t actually increase EV sales.

But no matter how hard I look at some other programs – and no matter how awful I think they are – coming up with better alternatives of my own isn’t at all straightforward. A case in point is contemporary strategies for managing urban homeless shelters. The problem is obvious: people suffering from mental illnesses, addictions, and poverty desperately need assistance with shelter and immediate care.

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Ideally, shelters should provide integration with local healthcare, social, and employment infrastructure to make it easier for clients to get back on their feet. But integration isn’t cost-free. Because many shelters serve people suffering from serious mental illnesses, neighbors have to worry about being subjected to dangerous and criminal behavior.

Apparently, City of Toronto policy now requires their staff to obscure from public view the purchase and preparation of new shelter locations. The obvious logic driving the policy is the desire to avoid push back from neighbors worried about the impact such a facility could have.

As much as we might regret the not-in-my-back-yard (NIMBY) attitude the city is trying to circumvent, the neighbors do have a point. Would I want to raise my children on a block littered with used syringes and regularly visited by high-as-a-kite – and often violent – substance abusers? Would I be excited about an overnight 25 percent drop in the value of my home? To be honest, I could easily see myself fighting fiercely to prevent such a facility opening anywhere near where I live.

On the other hand, we can’t very well abandon the homeless. They need a warm place to go along with access to resources necessary for moving ahead with their lives.

One alternative to dorm-like shelters where client concentration can amplify the negative impacts of disturbed behavior is “housing first” models. The goal is to provide clients with immediate and unconditional access to their own apartments regardless of health or behaviour warnings. The thinking is that other issues can only be properly addressed from the foundation of stable housing.

Such models have been tried in many places around the world over the years. Canada’s federal government, for example, ran their Housing First program between 2009 and 2013. That was replaced in 2014 with the Homelessness Partnering Strategy which, in 2019 was followed by Reaching Home.

There have been some successes, particularly in small communities. But one look at the disaster that is San Francisco will demonstrate that the model doesn’t scale well. The sad fact is that Canada’s emergency shelters are still as common as ever: serving as many as 11,000 people a night just in Toronto. Some individuals might have benefited from the Home First-type programs, but they haven’t had a measurable impact on the problem itself.

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Where does the money to cover those programs come from? According to their 2023 Financial Report, the City of Toronto spent $1.1 billion on social housing, of which $504 million came in funding transfers from other levels of government. Now we probably have to be careful to distinguish between a range of programs that could be included in those “social housing” figures. But it’s probably safe to assume that they included an awful lot of funding directed at the homeless.

So money is available, but is there another way to spend it that doesn’t involve harming residential neighborhoods?

To ask the question is to answer it. Why not create homeless shelters in non-residential areas?

Right off the top I’ll acknowledge that there’s no guarantee these ideas would work and they’re certainly not perfect. But we already know that the current system isn’t ideal and there’s no indication that it’s bringing us any closer to solving the underlying problems. So why not take a step back and at least talk about alternatives?

Good government is about finding a smart balance between bad options.

Put bluntly, by “non-residential neighborhood shelters” I mean “client warehouses”. That is, constructing or converting facilities in commercial, industrial, or rural areas for dorm-like housing. Naturally, there would be medical, social, and guidance resources available on-site, and frequent shuttle services back and forth to urban hubs.

If some of this sounds suspiciously like the forced institutionalization of people suffering from dangerous mental health conditions that existing until the 1970s, that’s not an accident. The terrible abuses that existed in some of those institutions were replaced by different kinds of suffering, not to mention growing street crime. But shutting down the institutions themselves didn’t solve anything. Involuntary confinement is currently enjoying serious reconsideration.

Clients would face some isolation and inconvenience, and the risk of institutional abuses can’t be ignored. But those could be outweighed by the positives. For one thing, a larger client population makes it possible to properly separate families and healthy individuals facing short-term poverty from the mentally ill or abusive. It would also allow for more resource concentration than community-based models. That might mean dedicated law enforcement and medical staff rather than reliance on the 9-1-1 system.

It would also be possible to build positive pathways into the system, so making good progress in the rural facility could earn clients the right to move to in-town transition locations.

This won’t be the last word spoken on this topic. But we’re living with a system that’s clearly failing to properly serve both the homeless and people living around them. It would be hard to justify ignoring alternatives.

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Disaster

Army Black Hawk Was On Training Flight

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A screen grab captured from a video shows a regional plane that collided in midair with a military helicopter and crashed into the Potomac River in Washington, D.C. on Jan. 29, 2025. Kennedy Center Cam/Anadolu via Getty Images

Squadron primarily used for transporting VIPs around D.C. was apparently familiarizing new pilot with area.

Wednesday night, shortly before 9pm ET, an American Airlines flight carrying 64 people was on its final approach to Ronald Reagan Washington National Airport when it collided with an Army helicopter with three soldiers on board, about 400 feet off the ground, killing everyone on both aircraft.

The Sikorsky UH-60 Black Hawk had departed from Fort Belvoir in Virginia with a flight path that cut directly across the flight path of Reagan National Airport

This final approach is probably the most carefully controlled in the world, as it it lies three miles south of the White House and the Capitol.

According to various media reports, military aircraft frequently train in the congested airspace around D.C. for “familiarization and continuity of government planning.”

Less than 30 seconds before the crash, an air traffic controller asked the helicopter, whose callsign was registered as PAT25, if he could see the arriving plane.

‘PAT25 do you see a CRJ? PAT 25 pass behind the CRJ,’ the air traffic controller said. A few seconds later, a fireball erupted in the night sky above Washington DC as the two aircraft collided.

Secretary of Defense Pete Hegseth issued the following statement on X:

It seems that Blackhawks from the 12th Aviation Battalion out of Davison Army Airfield are primarily used for shuttling VIPs around the D.C. area. The following appears to be a helicopter from this battalion.

On the face of it, it strikes me as very imprudent to conduct training flights at night that cross the final approach to Reagan D.C. To me, the word “training” suggests a potential for making errors that an instructor is called upon to correct.

It also strikes me as very strange that Army Blackhawk helicopters operating in this airspace at night are not required to operate with bright external lights, especially when crossing the final approach to Reagan D.C.

Finally, though it’s nothing more than a vague intuition, it seems to me that there is something very strange about this disaster and the timing of it. I wonder if, for some reason, risk management of such training activities was impaired.

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