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Canadians pay dearly in gas taxes – it’s only going to get worse

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From the Canadian Taxpayers Federation

Author: Jay Goldberg

Two thousand dollars. That’s how much the typical two-car family spends on gas taxes every year.

Big numbers can sometimes be hard to process. But the feeling of dread Canadians get as the gas metre ticks up sure isn’t.

Go to the gas station and you’ll see moms filling up the minivan before soccer practice, praying the metre doesn’t tick past $100 so she can afford to take the kids to McDonald’s after an hour of drills.

Or dads fueling up after a week of long commutes to the office, who might choose to only fill the tank halfway in order to have enough money left over to pick up groceries on the way home for Friday night dinner.

All too often, folks will throw up their hands when they see the gas bill, not knowing who to blame. But the truth is a lot of the fault for high gas prices lies at the feet of our politicians.

The average price of gas in Ontario late last month was $1.66 per litre. Out of that total per litre cost, a whopping 56 cents was taxes.

That means that more than a third of the price of gas is taxes, money going out of the pockets of hardworking families and into the coffers of big government.

A family filling up a Dodge Caravan and Honda Accord once every two weeks ends up paying just shy of two grand in gas taxes over the course of a year.

That’s the equivalent of two months’ worth of groceries for a family of four.

Yes, gas taxes have been around for decades. But politicians today, particularly those in Ottawa, keep driving the tax burden higher and higher.

The Trudeau government’s carbon tax now costs 17.6 cents per litre. For that family filling up the Caravan and Accord once every two weeks, over the course of a year, the carbon tax bill alone will reach $604.

And it’s a cost that wasn’t charged at the pump just six short years ago.

If a 56 cent per litre tax bill sounds bad to you now, just wait until you see what Prime Minister Justin Trudeau has in store for Canadians.

Trudeau plans to keep raising his carbon tax each and every year until 2030.

Today, the carbon tax costs 17.6 cents per litre of gas at the pumps. In six years, with Trudeau’s two carbon taxes fully implemented (the second one coming through fuel regulations), that number will be 54.4 cents per litre.

And that will bring the total per litre tax bill to $1.04.

By 2030, that same family filling up the Caravan and Accord every other week will be paying over $1,800 in carbon taxes. And the cost of overall gas taxes per year will hit $3,570.

This is a future Canadians can’t afford. And the federal carbon tax is making that future unaffordable.

The Trudeau government has tried to argue that somehow, by charging a carbon tax, paying bureaucrats to collect the carbon tax, charging sales tax on top of that carbon tax, and then using a magic formula to send some of that money back to taxpayers, Canadians will be better off.

Anyone who buys that should be looking for a beachfront property in Saskatoon.

And there are no refunds for Trudeau’s second carbon tax.

For those wondering, there are politicians out there willing to cut fuel taxes to make life more affordable at the pumps.

Provincial governments of all stripes, from the Liberals in Newfoundland and Labrador to the Progressive Conservatives here in Ontario to the NDP in Manitoba, have cut fuel taxes, saving families hundreds of dollars.

Trudeau’s scheduled carbon tax hikes over the next six years will crush family budgets like an asteroid wiping out the dinosaurs. It’s time for the feds to learn from the provinces and lower costs at the pumps.

That means putting scrapping the carbon tax at the top of the agenda.

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Canada needs serious tax cuts in 2026

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By Franco Terrazzano

What Prime Minister Mark Carney gives with his left hand, he takes away with his right hand.

Canadians are already overtaxed and need serious tax cuts to make life more affordable and make our economy more competitive. But at best, the New Year will bring a mixed bag for Canadian taxpayers.

The federal government is cutting income taxes, but it’s hiking payroll taxes. The government cancelled the consumer carbon tax, but it’s hammering Canadian businesses with a higher industrial carbon tax.

The federal government cut the lowest income tax bracket from 15 to 14 per cent. That will save the average taxpayer $190 in 2026, according to the Parliamentary Budget Officer.

But the government is taking more money from Canadians’ paycheques with higher payroll taxes.

Workers earning $85,000 or more will pay $5,770 in federal payroll taxes in 2026. That’s a $262 payroll tax hike. Their employers will also be forced to pay $6,219.

So Canadians will save a couple hundred bucks from the income tax cut in the new year, but many Canadians will pay a couple hundred bucks more in payroll taxes.

It’s the same story with carbon taxes.

After massive backlash from ordinary Canadians, the federal government dropped its consumer carbon tax that cost average families hundreds of dollars every year and increased the price of gas by about 18 cents per litre.

But Carney’s first budget shows he wants higher carbon taxes on Canadian businesses. Carney still hasn’t provided Canadians a clear answer on how much his business carbon tax will cost. He did, however, provide a hint during a press conference he held after signing a memorandum of understanding with the Alberta government.

“It means more than a six times increase in the industrial price on carbon,” Carney said.

Carney previously said that by “changing the carbon tax … We are making the large companies pay for everybody.”

Carney’s problem is that Canadians aren’t buying what he’s selling on carbon taxes.

Just 12 per cent of Canadians believe Carney that businesses will pay most of the cost of his carbon tax, according to a Leger poll. Nearly 70 per cent of Canadians say businesses will pass most or some of the cost to consumers.

Canadians understand that it doesn’t matter what type of lipstick politicians put on their carbon tax pig, all carbon taxes make life more expensive.

Carney is also continuing his predecessor’s tradition of automatically increasing booze taxes.

Ottawa will once again hike taxes on beer, wine and spirits in 2026 through its undemocratic alcohol tax escalator.

First passed in the 2017 federal budget, the alcohol escalator tax automatically increases federal taxes on beer, wine and spirits every year without a vote in Parliament.

Federal alcohol taxes are expected to increase by two per cent on April 1, and cost taxpayers $41 million in 2026. Since being imposed, the alcohol escalator tax has cost taxpayers about $1.6 billion, according to industry estimates.

Canadians are overtaxed and need the federal government to seriously lighten the load.

The biggest expense for the average Canadian family isn’t the home they live in, the food they eat or the clothes they buy. It’s the taxes they pay to all levels of government. More than 40 per cent of the average family’s budget goes to paying taxes, according to the Fraser Institute.

Politicians are taking too much money from Canadians. And their high taxes are driving away investment and jobs.

Canada ranks a dismal 27th out of 38 industrialized countries on individual tax competitiveness, according to the Tax Foundation. Canada ranks 22nd on business tax competitiveness. Canada is behind the United States on both measures.

A little bit of tax relief here and there isn’t going to cut it. Carney’s New Year’s resolution needs to be to embark on a massive tax cutting campaign.

 

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Bruce Dowbiggin

Be Careful What You Wish For In 2026: Mark Carney With A Majority

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“The unifying theme that enables the Liberal party to maintain its hold over Canada is persistent anti-Americanism…I hope Canadians finally mature, acknowledge that we are neither superior nor inferior to the United States, and abandon our collective national inferiority complex.” Conrad Black quotes a friend. 

Canadian media have almost always been reflexively anti-American. Fair enough. Abandoned by Britain they needed to push back. But the real fear of being consumed by the rebel colonies to the south has morphed into a fear of Donald Trump reminding Canada that it has been riding first class while paying economy.

Bashing noisy, bumptious America has always been good business if you owned a Canadian newspaper or television/radio network. The performative worship of Canadian leaders who cocked a snook at the Yankees led, in recent times, to the open-mouthed support for the fatuous Trudeaupian line of monarchs. As Ray Davies sang, “each one a dedicated follower of fashion.”

Since Pierre “The Bold” Trudeau succeeded Lester Pearson and ascended to the throne of the Family Compact in 1968, Canadian policy from Viet Nam to Trump has become “What are the Americans doing? Then let’s do the opposite”. Sample of spite: CBS TV pulled a controversial 60 Minutes news story —but it aired in Canada after being leaked by pissed-off CBS employees.

Yes, there was the brief Harper interregnum when Canada actually fought a military campaign alongside the U.S. in Afghanistan. But mostly it was Jean “Golf Balls” Chretien sitting out the Iraq War.

Alas, all good things must end. Or at least pause. People were starting to notice that Justy was a Chinese trusty, his Montreal riding campaign funded by hundreds of Chinese “businessman” from far away. The tragi-comic Trudeuapian succession hit a speed bump with Mark Carney being brought in to domesticate Canada in manner satisfactory to Brookfield and the EU.

But no one is betting the Libs won’t turn to a third generation of Quebec fashionistas— in the form of another Trudeau progeny— when all else fails.

As usual caustic Conrad Black sums up Canada best. With Quebec and Alberta talking separation he quotes a friend on the state of the nation. “What exists instead is a Liberal Party that manages — often quite poorly — the finances of a collection of provinces and territories, while relying on its media apparatus to shape and safeguard its narrative. It resembles a hedge fund supported by an image consulting firm.” (Insert your convict felon/ anglo wannabe reference here.)

There is no doubt that, as 2025 skulks out, the “image-consulting firm” painting rosy pictures of the Laurentian Elite is in for a a challenge. Justin thought using Trump as his pretext could achieve peace by buying up the lads and lasses of the fourth estate. It worked with Covid and the Truckers Convoy as the column writers/ panel hosts dutifully wrote it like he called it (even as the international press chided Trudeau.).

But even those good times didn’t last, forcing the Libs to do a presto-chango before Justin could lead them to a catastrophic defeat in the spring election. Once more, faced with Trump’s aggressive posture toward trade with Canada, the press closed ranks over Elbows Up, portraying CPC leader Pierre Poilievre as Dick Dastardly.

But new polling shows that the burst of enthusiasm for more Liberal pantomime is wearing thin. The new “new” trade deal promised with Trump has dissipated. The threat to private home ownership in B.C. by government’s indigenous land concessions has sent a chill through the middle class. The NDP fainting goats who bought Elbows Up are headed back to Crazytown, likely under Avi Lewis.

Now, at last, the reckoning promised by the Conservatives’ 20-point lead in polling this time last year may be at hand. While the diehards will go their graves mumbling land acknowledgements and 32 pronouns, there is hope that the under 60s— who emphatically support the Tories— will force change.

What change? Tristan Hopper in the National Post suggests that one place to start reforming the jalopy of Canadian government is in the oceans of money lavished on cause-related political leeches. Seeing the Bondi Beach slaughter by ISIS radicals many now question how long before Toronto or Montreal experiences a similar tragedy at the hands of jihadis who are lavishly supported by tax money.

Yes, not all Muslims in the West are terrorists. But almost all terrorists in the West are Muslim. Hate-spewing Hamas groupies from college faculty are regularly allowed major intersections with police protection as they promise to wipe out infidels. Till now it’s been poor form to even mention, let alone criticize, this pantomime.

Withdrawing financial aid to these groups and their academic fellow travellers would immediately rob these brigands of their impact. The cries of despair from cutting the cord would also expose those in the Commons who have coddled these vipers with grants and ministries.

Similar hacking at the slush money aimed at every other form of leftist posing— from trans to indigenous to illegal immigrants— would also mark the end of free money. Of course there will be caterwauling from the Elizabeth May Free Lunch crew. But with the threat of Canada coming apart with Quebec and Alberta/ Saskatchewan headed for the door those usual dissenting voices will be muted.

Only one thing stands in the way of this culling. That is PM Mark Carney coercing one more MP to cross the floor to his party, cementing its majority status for up to four more years. While the At Issue panels slap their flippers in glee at Poilievre’s demise, the rest of the nation will be less enthralled with the new realities of censorship, trade and housing.

As Stephen Punwasi states. “People in Canada can’t afford homes & prices can’t fall because debt was securitized with widespread fraud—so taxpayers will subsidize foreign speculation. It’s like they hired the mayor of Vancouver to run housing. Oh—they did, eh? Kids, run.”

Bruce Dowbiggin @dowbboy is the editor of Not The Public Broadcaster  A two-time winner of the Gemini Award as Canada’s top television sports broadcaster, his 2025 book Deal With It: The Trades That Stunned The NHL And Changed Hockey is now available on Amazon. Inexact Science: The Six Most Compelling Draft Years In NHL History, his previous book with his son Evan, was voted the seventh-best professional hockey book of all time by bookauthority.org . His new poetry collection In Other Words is available via brucedowbigginbooks.ca and on Kindle books at https://www.amazon.ca/dp/1069802700

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