Inflation
Trudeau’s carbon tax rebrand lipstick on a pig
From the Canadian Taxpayers Federation
Author: Franco Terrazzano
the Liberals are now calling it the ‘Canada Carbon Rebate.’
The Canadian Taxpayers Federation is criticizing the federal government for rebranding its carbon tax rebate instead of providing relief by scrapping the tax altogether.
“Prime Minister Justin Trudeau’s carbon tax rebrand is just lipstick on a pig,” said Franco Terrazzano, CTF Federal Director. “Canadians need tax relief, not a snappy new slogan that won’t do anything to make life more affordable.”
“The federal government is rebranding the carbon tax rebate,” reported CTV News today. “Previously known as the Climate Action Incentive Payment, the Liberals are now calling it the ‘Canada Carbon Rebate.’
“The change does not come with any adjustments to how the federal fuel charge system and corresponding refund actually works.”
The carbon tax will cost the average family up to $710 this year even after the rebates, according to the Parliamentary Budget Officer.
The federal government is increasing the carbon tax again on April 1. After the hike, the carbon tax will cost 17 cents per litre of gasoline, 21 cents per litre of diesel and 15 cents per cubic metre of natural gas.
“Trudeau’s real problem isn’t that Canadians don’t know what his government is doing, Trudeau’s real problem is that Canadians know his carbon tax is making life more expensive,” Terrazzano said. “Instead of a rebrand, Trudeau should scrap the carbon tax to provide real relief.”
From the Canadian Taxpayers Federation
The Canadian Taxpayers Federation released a Leger poll showing 60 per cent of Canadians want the federal government to remove the carbon tax from all home heating fuels.
“The poll results are crystal clear: Canadians don’t think the government should be taxing people for staying warm during the winter,” said Franco Terrazzano, CTF Federal Director. “Canadians who are struggling the most are most likely to want the federal government to remove the carbon tax from everyone’s heating bills.”
The federal government removed the carbon tax from furnace oil for three years. But that carbon tax relief only helps three per cent of Canadian homes.
The Leger poll asked Canadians if they support or oppose the federal government removing the carbon tax from all home heating fuels. The results of the poll show:
- 60 per cent support tax relief for all home heating
- 21 per cent oppose tax relief for all home heating
- 19 per cent don’t know
Among those who are decided on the issue, 74 per cent of Canadians support the federal government removing the carbon tax from everyone’s home heating bills.
The Leger poll found high support across the country for removing the carbon tax from all home heating fuels:
- Atlantic Canada: 68 per cent support
- Quebec: 49 per cent support
- Ontario: 60 per cent support
- Saskatchewan and Manitoba: 55 per cent support
- Alberta: 70 per cent support
- British Columbia: 66 per cent support
Among income levels, those earning less than $60,000 are most likely to support the federal government removing the carbon tax from all home heating fuels.
“When Prime Minister Justin Trudeau announced his furnace oil carve-out, he admitted the carbon tax makes life more expensive and he left 97 per cent of Canadian families out in the cold,” Terrazzano said. “All MPs should take this poll as a wake-up call and push Trudeau for relief before their constituents get hammered with carbon tax bills this winter.
From the Fraser Institute
By Ben Eisen and Milagros Palacios
In eight of 10 provinces the rate of government job growth has been higher than the private sector, finds a new study published today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.
“Canada’s net job creation in recent years has been disproportionately driven by growth in government employment rather than growth in the private sector, and as of 2019, government employment as a share of total employment in the country is at its highest point since the mid-1990s,” said Ben Eisen, Fraser Institute senior fellow and co-author of Economic Recovery in Canada before and after COVID: Job Growth in the Government and Private Sectors.
The study finds that historically, no other recent era of recession and recovery in Canada have been so dominated by government sector job growth compared to private sector job growth.
During the recession and recovery periods related to the COVID-19 recession (2019-2023), government employment across the country, including federal, provincial and municipal increased by 13.0 per cent compared to just 3.6 per cent in the private sector (including self-employment.)
In every Canadian province save for Alberta and Nova Scotia, employment in the government sector expanded at a higher rate than the private sector. In BC, employment growth in the private sector (including self-employment) rose only by 0.5 per cent during the period compared to 22.0 per cent in the government sector. Ontario’s public sector experienced triple the growth the private sector had, with 14.6 per cent and 4.8 per cent, respectively.
The study also compares the current recession and recovery in Canada to the United States, where the private sector has generated a large majority of all new jobs in recent years. In Canada, the government sector is responsible for 46.7 per cent of total job growth from 2019-203 compared to 16.1 per cent in the United States.
“Canada has seen a much higher rate of job growth in the government sector than the private sector in recent years, which is a concerning trend given that job growth and wealth creation in the private sector are needed to finance the activities of governments,” said Eisen.
- Several past analyses published by the Fraser Institute have shown that in recent years net job creation in the government sector has dramatically outstripped private-sector job creation.
- This publication updates these data, showing that during the recession brought on by the COVID-19 pandemic and the following recovery (2019–2023), government employment has increased by 13.0% while employment in the private sector (including self-employment) increased just 3.6%
- We further expand past analysis by comparing the ongoing recovery from the COVID-19 recession to past periods of economic recession and recovery.
- We find that the extent to which the current economic recovery is driven by government job growth is historically unusual. We compare the current economic environment to five past economic recessions and slowdowns and find that none of those recoveries were nearly as reliant on job creation in the government sector.
- We also compare the current recession and recovery in Canada to that in the United States, which differs sharply. In the United States, the private sector has generated a large majority of all new jobs in recent years and the rate of net job creation in the private sector has been nearly identical to that in the government sector.
- As a result of disproportionately faster growth in the public-sector employment, government’s share of employment post-COVID is higher than at any point since the fiscal consolidations of the 1990s.
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