Economy
Doug Ford – the Net Zero Premier
By Dan McTeague
Doug Ford came into power promising a change from the Kathleen Wynne Green Energy Act fiasco – the one which saddled Ontario taxpayers with costly green energy contracts, driving up the price of power. Ford promised to scrap those wasteful contracts, lower hydro rates, and restore affordability to Ontario. But as we take stock of his energy policies today, it seems Ford is steering Ontario down a path that feels a bit too familiar.
For all his talk about energy affordability, Ford continues to pander to the environmentalist “Net Zero” ideology that got Ontario into this mess in the first place. The idea is that somehow Canada will be a net zero emitter of greenhouse gas emissions by 2050. We have seen this play out at the Federal level, with the Trudeau Liberals implementing a host of reckless and punitive policies in the vain hopes of achieving this preposterous goal. You can thank Net Zero for Carbon Taxes, Emissions Caps, the Clean Fuel Standard, Electric Vehicle Mandates and on and on.
Instead of backing away and distancing himself from this scam, Doug Ford has embraced and doubled down on it. Recall that during a provincial leaders debate in June 2022, Ford stated that he will not be happy until Ontario achieves a 100% zero-carbon electricity grid, buying into the Net Zero electrification nonsense that the Trudeau government is pushing. This would mean moving away from fossil fuels like affordable and reliable natural gas as energy sources in Ontario.
Stephen Lecce, Ford’s minister of the recently renamed Ministry of Energy and Electrification, is full steam ahead on this project. And the ministry’s new name is significant, pointing towards an “energy transition” for Ontario, such that eventually everything – cars, home heating, etc. – will be run on electricity rather than traditional fuels.
Currently, about 20 per cent of Ontario’s energy needs are met by electricity, so where will this electricity come from, without fossil fuels? At a recent Empire Club event, Ford gave a fireside chat where he discussed Ontario’s electricity plan (you can hear the interview here). He spoke about the energy sector and his commitment to all low carbon options for Ontario’s electricity grid, including wind and solar. This marks a reversal of his earlier skepticism about these technologies. The irony is that Ontario taxpayers are still paying for the expensive legacy of earlier wind and solar government spending. Wasting more taxpayer dollars will mean more of the following: higher energy costs, decreased grid reliability, and growing public debt.
As energy expert Parker Gallant has pointed out, the costs of wind power alone have been staggering, with taxpayers footing the bill for inefficient projects that deliver intermittent power. Doubling down on these same strategies, even under a different name, does little to address affordability or reliability.
Ford has hitched his horse fully to the Net Zero wagon. According to his government’s policy document Planning for electrification and the energy transition: “Much of the world – including many of Ontario’s major trading partners – have committed to achieving economy-wide carbon neutrality by 2050.” Consequently, it recommends that Ontario adopt similar Net Zero strategies, as doing so allegedly contributes “to the global climate solution and thereby sets the province up to succeed and prosper in the emerging global clean energy economy.”
These claims didn’t make sense when they were made five years ago and they make even less sense today. Afterall, Ontario’s largest trading partner to the South has just elected Donald Trump whose policy approach to energy can be summarized by the phrase, “Drill Baby Drill.” We can expect that one of Trump’s first acts as president will be to (once again) exit the Paris Agreement. Trump has no intention of drinking the Net Zero KoolAid, though he will no doubt be happy to have America’s competitors like Canada burden themselves with unnecessary environmental commitments and regulations, which will drive up the cost of doing business and make “made in America” a much more attractive brand. Competitiveness and affordability in Canada can go out the window as manufacturers and businesses will start looking South as the more attractive business environment.
While Trump seeks to unleash the United States’ energy potential, Ford will only stifle Ontario’s. Which is to say, Ford is setting Ontario up for failure. Now that is a real net zero.
Dan McTeague is President of Canadians for Affordable Energy.
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Taxpayers launching court fight against undemocratic capital gains tax hike
From the Canadian Taxpayers Federation
By Devin Drover
There is no realistic chance the legislation will pass before the next election. Despite this, the CRA is pushing ahead with enforcement of the tax as if it is already law.
The Canadian Taxpayers Federation is filing a legal challenge today to stop the Canada Revenue Agency from enforcing a capital gains tax increase that has not been approved by Parliament.
“The government has no legal right to enforce this tax hike because it has not received legislative approval by Parliament,” said Devin Drover, CTF General Counsel. “This tax grab violates the fundamental principle of no taxation without representation. That’s why we are asking the courts to put an immediate stop to this bureaucratic overreach.”
The CTF is representing Debbie Vorsteveld, a resident of Mapleton, Ontario. Last year, she and her husband, Willem, sold a property that included a secondary home. They had rented the secondary home to their adult children, but had to sell it when their kids were ready to move on. The CRA says the Vorstevelds must pay higher capital gains taxes under the proposed capital gains increase or face financial penalties.
The CTF is seeking urgent relief from the Federal Court to block the CRA’s enforcement of the proposed tax increase. In its application, the CTF argues the tax increase violates the rule of law and is unconstitutional.
The government passed a ways and means motion for the tax increase last year but failed to introduce, debate, pass, or proclaim the necessary legislation into law.
Parliament is now prorogued until March 24, 2025, and opposition parties have all pledged to bring down the Liberal government. As a result, there is no realistic chance the legislation will pass before the next election. Despite this, the CRA is pushing ahead with enforcement of the tax as if it is already law.
A new report from the C.D. Howe Institute shows the capital gains tax increase will result in 414,000 fewer jobs and shrink Canada’s GDP by nearly $90 billion.
“The undemocratic capital gains tax hike will blow a huge hole in Canada’s economy and punishes people saving for their retirement, entrepreneurs, doctors and Canadian workers,” said Franco Terrazzano, CTF Federal Director. “It’s Parliament’s responsibility to approve tax increases before they’re imposed, not unelected government bureaucrats.
“The CRA must immediately halt its plans to enforce this unapproved tax hike, which threatens to undemocratically take billions from Canadians and cripple our economy.”
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