Business
Federal Liberals find an improbable new tax target. Environment Minister Steven Guilbeault touts a new Global Carbon Tax
From LifeSiteNews
Canadian environment minister favors ‘global’ carbon tax on goods that could drive up prices for families
Canadian Minister of Environment Steven Guilbeault wants to create a new “global’ carbon tax applied to all goods shipped internationally that would further drive up prices for families already struggling with inflated costs for basic needs.
Guilbeault shared Wednesday on social media a post from Environment Canada that confirmed “carbon pollution pricing was discussed” at the United Nations’ COP29 Climate Change conference in Azerbaijan and “is seen by global leaders as a powerful tool for driving investments in clean technologies and accelerating economic growth.”
“Canada is more invested than ever in ensuring collective global action that responds to the growing costs of climate change and a shift toward a low-carbon clean economy,” Guilbeault said in a statement.
According to the Conservative Party of Canada, Guilbeault’s new plan would be “sent abroad to other countries” and make everything more expensive for Canadians.
“This new tax on maritime transportation would undoubtedly drive investment and business away from our already struggling port system, putting strong union jobs at risk,” the Conservatives said in a press release.
Conservatives said the new proposed tax “on shipping” is nothing more than an extra tax on “goods that are being shipped.”
“At a time when 2 million people are using food banks every month, Canadians can’t afford another failed Liberal tax grab,” Conservatives said.
“The carbon tax is nothing more than an expensive scam. It has done nothing to reduce emissions, while dramatically increasing the cost of living on the backs of working Canadians.”
Canada’s port creates $17 billion a year in economic output, according to the Association of Canadian Port Authorities.
The Conservative Party highlighted how Guilbeault’s carbon tax is costing Canadians thousands, noting that Prime Minister Justin Trudeau’s Liberal government instead wants to forge ahead and make everything more expensive.
“But instead of giving Canadians the relief they deserve, Trudeau decided to hike his carbon tax by 23 percent last spring as part of his plan to quadruple the carbon tax by 2030,” Conservatives said.
LifeSiteNews previously reported that even those in the federal government, such as the Parliamentary Budget Officer, have said Trudeau’s carbon tax is costing Canadians hundreds of dollars annually, noting that rebates are not sufficient to compensate for the increased fuel prices.
On April 1, Trudeau increased the carbon tax by 23 percent despite seven of 10 provincial premiers and 70 percent of Canadians pleading with him to halt his plan.
As reported by LifeSiteNews, a July survey found that nearly half of Canadians are just $200 away from financial ruin as the costs of housing, food and other necessities has gone up massively since Trudeau took power in 2015.
The Trudeau government has continued to push a radical environmental agenda similar to the World Economic Forum’s “Great Reset” and the United Nations’ “Sustainable Development Goals.”
The reduction and eventual elimination of so-called “fossil fuels” and a transition to unreliable “green” energy has also been pushed by the World Economic Forum, the globalist group in which Trudeau and some of his cabinet are involved.
Critics argue that instead of addressing these issues, the Trudeau government has instead used the “climate change” agenda to justify applying a punitive carbon tax on Canadians.
Some provinces such as Alberta are legally challenging the current federal carbon tax.
Not only is the carbon tax costing Canadian families hundreds of dollars annually, but Liberals have admitted that the carbon tax has only reduced greenhouse gas emissions by 1 percent.
From the Canadian Taxpayers Federation
The Canadian Taxpayers Federation is applauding Conservative Party Leader Pierre Poilievre’s promise to reverse the capital gains tax hike. Taxpayers are also demanding the Canada Revenue Agency immediately halt enforcement for the proposed tax increase.
“Poilievre is right to oppose the capital gains tax hike that will punish Canadian doctors, entrepreneurs and people saving for their retirement,” said Franco Terrazzano, CTF Federal Director. “The capital gains tax hike will blow a huge hole in Canada’s economy that we can’t afford.
“It’s great that Poilievre plans to scrap the capital gains tax hike, but he shouldn’t have to because the legislation has never passed and the CRA shouldn’t be enforcing it.”
Today, Poilievre announced he “will reverse last June’s Liberal tax hike on capital gains,” if he becomes prime minister.
A new report from the CD Howe Institute shows the capital gains tax hike will result in more than 400,000 fewer jobs and shrink Canada’s GDP by nearly $90 billion.
This report was completed in response to the Trudeau government’s plan to raise the capital gains inclusion rate for the first time in 25 years.
While a ways and means motion for the tax increase passed last year, the government failed to introduce or pass necessary legislation. Despite this, the CRA is pushing ahead with enforcement of the tax hike.
“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,” said Devin Drover, CTF General Counsel. “It’s Parliament’s responsibility to approve tax increases before they’re implemented, not unelected government bureaucrats in Ottawa.
“The proposed capital gains tax hike must be stopped.”
From the Fraser Institute
By Tegan Hill
After recently meeting with president-elect Donald Trump, Premier Danielle Smith warned that Trump’s tariffs could include oil. That’s just one more risk factor added to Alberta’s already precarious fiscal situation, which could mean red ink in the near future.
Trump has threatened a 25 per cent tariff on Canadian goods, which includes oil, and could come as early as January 20 when he’s sworn in as president. Such tariffs would likely widen the price differential between U.S. West Texas Intermediate (WTI) crude oil and Alberta’s Western Canadian select (WCS) heavy oil.
In other words, the average price difference between Canadian oil (WCS) and U.S. oil (WTI) could increase, reflecting a larger discount on Canadian oil. According to the Alberta government’s estimate, every $1 that WCS is sold at discount is a $600 million hit to the government’s budget.
To maintain its $4.6 billion projected budget surplus this fiscal year (2024/25), the Smith government is banking on oil prices (WTI) averaging US$74.00 per barrel in 2024/25. But every $1 decline in oil prices leads to a $630 million swing in Alberta’s bottom line. And WTI has dropped as low as US$67.00 per barrel in recent months.
Put simply, Trump’s proposed tariffs would flip Alberta’s budget surplus to a budget deficit, particularly if paired with lower oil prices.
While Smith has been aggressively trying to engage with lawmakers in the United States regarding the tariffs and the inclusion of oil, there’s not much she can do in the short-run to mitigate the effects if Trump’s tariff plan becomes a reality. But the Smith government can still help stabilize Alberta’s finances over the longer term. The key is spending restraint.
For decades, Alberta governments have increased spending when resource revenues were relatively high, as they are today, but do not commensurately reduce spending when resource revenues inevitably decline, which results in periods of persistent budget deficits and debt accumulation. And Albertans already pay approximately $650 each in provincial government debt interest each year.
To its credit, the Smith government has recognized the risk of financing ongoing spending with onetime windfalls in resource revenue and introduced a rule to limit increases in operating spending (e.g. spending on annual items such as government employee compensation) to the rate of population growth and inflation. Unfortunately, the government’s current plan for restraint is starting from a higher base level of spending (compared to its original plan) due to spending increases over the past two years.
Indeed, the government will spend a projected $1,603 more per Albertan (inflation-adjusted) this fiscal year than the Smith government originally planned in its 2022 mid-year budget update. And higher spending means the government has increased its reliance on volatile resource revenue—not reduced it. Put simply, Smith’s plan to grow spending below the rate of inflation and population growth isn’t enough to avoid budget deficits—more work must be done to rein in high spending.
Trump’s tariffs could help plunge Alberta back into deficit. To help stabilize provincial finances over the longer term, the Smith government should focus on what it can control—and that means reining in spending.
Tegan Hill
Director, Alberta Policy, Fraser Institute
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