Economy
MP Earl Dreeshen explains opposition to budget and support for plan to replace the Carbon Tax
Submitted by Red Deer – Mountain View MP Earl Dreeshen
In Touch with MP Earl Dreeshen
2021 has continued to be a challenging year after a turbulent 2020. Our community as well as communities and governments around the world are navigating the COVID-19 pandemic and it has led to significant challenges. Many people are dealing with significant health effects, financial strain, mental health strain, and so much more.
I would challenge everybody to recognize that, to some degree, everyone in Canada has been affected by the pandemic. I encourage you to keep that in mind in our dealing with our neighbors and fellow community members going forward.
2021 Budget
For the first time in over two years, the Liberal Government has tabled a budget. They spent most of the pandemic, and the year prior, dodging from accountability on their spending and we can see why.
It’s clear Justin Trudeau’s election budget fails to put forward a plan to adequately fund healthcare, grow the economy, and create jobs.
Justin Trudeau’s budget is a massive letdown for Canadians. Unemployed Canadians hoping to see a plan to create new jobs and economic opportunities for their families are going to feel let down. Workers who have had their wages cut and hours slashed hoping to see a plan to reopen the economy are going to feel let down. Families that can’t afford more taxes and are struggling to save more money for their children’s education or to buy a home are going to feel let down.
This is not stimulus spending focused on creating jobs, but spending on Liberal partisan priorities backed by a $100 billion election slush fund. Unfortunately, this budget does nothing to secure long term prosperity for Canadians. Instead, what Justin Trudeau has proposed is a “reimagined” Canadian economy that dabbles in risky economic ideas, like abandoning Canada’s world leading and sustainable natural resource industries, leaving our economy in a precarious position.
For these reasons, my Conservative colleagues and I voted against the 2021 Budget. More of my thoughts on the budget can be found here
Economic Recovery
As Conservatives, we have been focused on economic recovery across Canada. We acknowledge that these times are unprecedented and additional measures were necessary. Millions of Canadians had their employment and businesses impacted and there was a responsibility to those who fell through the cracks.
However, the reason why these programs need to be extended is due to Justin Trudeau’s failure on vaccines. We are behind many of our allies on moving forward which is why it is so critical that we have a plan to recovery now, and can hit the ground running when possible.
Erin O’Toole and our team has put forward Canada’s Recovery Plan, which is focused on creating financial security and certainty. This plan will safely secure our future and deliver a Canada where those who have struggled the most through this pandemic can get back to work.
This plan will ensure that manufacturing at home is bolstered, where wages go up, and where the dream of affording a better life for their children can be realized by all Canadians.
We are focused on securing jobs and the economy for Canadians who have been left behind by Justin Trudeau.
Canada’s Conservatives got Canada through the last recession, and with Canada’s Recovery Plan, we will get Canadians through this one too.
Conservative Environment Policy
I have heard a lot of feedback already on the proposed Conservative Environment Policy.
As you might know, I have been a vehement opponent of the Liberal government’s environmental approach, and of their Carbon Tax. I have spoken in the House of Commons and other venues on many occasions about the devastating impact the Carbon Tax is having on our farmers and ranchers as well as its devastating impact on all residents of Alberta – who are literally seeing their paychecks and their savings eaten away by this ill-conceived Liberal tax.
My Conservative colleagues and I remain committed to scrapping the job-killing Carbon Tax. We also remain firmly committed to protecting and enhancing our environment – as Conservatives have always done. Conservatives have always been the party which cares the most about conserving our resources, protecting our soils and waters, while taking action to preserve the environment we live in. As Western Canadians, we all understand the need to preserve the environment for future generations.
What we don’t understand is the Liberal government’s approach which is one of big government taxing consumers and phasing out jobs at a time that we need them the most.
Our plan for the environment does include a carbon pricing mechanism. Young Canadians in particular want to see us take action on this front. And we will need a broader base of voter support than we have had in the past if we are going to form Canada’s next government.
In a nutshell, the Low Carbon Saving Account works like Airmiles or other affinity programs. When you purchase gas, your card is fully credited the carbon price. You can bank that money to eventually use on energy efficient products like new windows, hot water tanks, low emission equipment for your farm or business, etc. Businesses get their own account so they no longer pass the cost onto you the consumer as a ‘hidden carbon tax’.
A comparison I have heard is to the deposit on your cans and bottles. You pay it, but if you return the cans and bottles you get that money back. Yes, there will be upfront costs, but the costs will be less than 1/3 of the Liberal plan once fully implemented and you retain agency of every penny you put in.
One of the other major concepts is that small businesses and non-profits will be able to keep control of the money they pay, instead of the current system where these organizations subsidize the program for people in downtown Toronto who don’t have to drive to work.
The savings account idea is only a portion of the plan in total. I would encourage you to look at the whole plan if you are interested. One of the driving ideas is that we don’t want to shut down our industry just to see it end up in other jurisdictions. Our plan addresses that by being less punishing for using carbon while still incentivising more environmentally friendly practises through use of the savings plan. We will also study putting tariffs on certain products that come from places like China that do not do their part in addressing the environment, so that we are not artificially harming our own industries.
Independent analysis, conducted by Navius Research, found this plan would be expected to achieve substantially the same emission reductions as the Stephen Harper’s targets, while resulting in a boost to jobs and the economy. In addition, not a cent of consumer tax dollars will end up with bureaucrats in Ottawa.
I would ask you to take the time to read the plan in its entirety and not rely solely on media coverage.
Economy
Ottawa’s new ‘climate disclosures’ another investment killer
From the Fraser Institute
By Matthew Lau
The Trudeau government has demonstrated consistently that its policies—including higher capital gains taxes and a hostile regulatory environment—are entirely at odds with what investors want to see. Corporate head offices are fleeing Canada and business investment has declined significantly since the Trudeau Liberals came to power.
According to the Trudeau government’s emissions reduction plan, “putting a price on pollution is widely recognized as the most efficient means to reduce greenhouse gas emissions.” Fair enough, but a reasonable person might wonder why the same politicians who insist a price mechanism (i.e. carbon tax) is the most efficient policy recently announced relatively inefficient measures such “sustainable investment guidelines” and “mandatory climate disclosures” for large private companies.
The government claims that imposing mandatory climate disclosures will “attract more private capital into Canada’s largest corporations and ensure Canadian businesses can continue to effectively compete as the world races towards net-zero.” That is nonsense. How would politicians Ottawa know better than business owners about how their businesses should attract capital? If making climate disclosures were a good way to help businesses attract capital, the businesses that want to attract capital would make such disclosures voluntarily. There would be no need for a government mandate.
The government has not yet launched the regulatory process for the climate disclosures, so we don’t know exactly how onerous it will be, but one thing is for sure—the disclosures will be expensive and unnecessary, imposing useless costs onto businesses and investors without any measurable benefit, further discouraging investment in Canada. Again, if the disclosures were useful and worthwhile to investors, businesses seeking to attract investment would make them voluntarily.
Even the government’s own announcement casts doubt that increasing business investment is the likely outcome of mandatory climate disclosures. While the government says it’s “sending a clear signal to corporate boards and shareholders, at home and around the world, that Canada is their trusted partner for putting private capital to work in the race to net-zero,” most investors are not looking to put private capital to work to combat climate change. Most investors want to put their capital to work to earn a good financial return, after adjusting for the risk of the investment.
This latest announcement should come as no surprise. The Trudeau government has demonstrated consistently that its policies—including higher capital gains taxes and a hostile regulatory environment—are entirely at odds with what investors want to see. Corporate head offices are fleeing Canada and business investment has declined significantly since the Trudeau Liberals came to power. Capital per worker in Canada is declining due to weak business investment since 2015, and new capital per-Canadian worker in 2024 is barely half of what it is in the United States.
It’s also fair to ask, in the face of these onerous polices—where are the environmental benefits? The government says its climate disclosures are needed for Canada to progress to net-zero emissions and “uphold the Paris climate target of limiting global warming to 1.5°C above pre-industrial levels,” but its net-zero targets are neither feasible nor realistic and the economics literature does not support the 1.5 degrees target.
Finally, when announcing the new climate disclosures, Trudeau Environment Minister Steven Guilbeault said they are an important stepping stone to a cleaner economy, which is a “major economic opportunity.” Yet even the Canada Energy Regulator (a federal agency) projects net-zero policies would reduce real GDP per capita, increase inflation of consumer prices and reduce residential space (in other words, reduce living standards).
A major economic opportunity that will increase business investment? Surely not—mandatory climate disclosures will only further reduce our standard of living and impose useless costs onto business and investors, with the sure effect of reducing investment.
Author:
Business
Premiers fight to lower gas taxes as Trudeau hikes pump costs
From the Canadian Taxpayers Federation
By Jay Goldberg
Thirty-nine hundred dollars – that’s how much the typical two-car Ontario family is spending on gas taxes at the pump this year.
You read that right. That’s not the overall fuel bill. That’s just taxes.
Prime Minister Justin Trudeau keeps increasing your gas bill, while Premier Doug Ford is lowering it.
Ford’s latest gas tax cut extension is music to taxpayers’ ears. Ford’s 6.4 cent per litre gas tax cut, temporarily introduced in July 2022, is here to stay until at least next June.
Because of the cut, a two-car family has saved more than $1,000 so far. And that’s welcome news for Ontario taxpayers, because Trudeau is planning yet another carbon tax hike next April.
Trudeau has raised the overall tax burden at the pumps every April for the past five years. Next spring, he plans to raise gas taxes by another three cents per litre, bringing the overall gas tax burden for Ontarians to almost 60 cents per litre.
While Trudeau keeps hiking costs for taxpayers at the pumps, premiers of all stripes have been stepping up to the plate to blunt the impact of his punitive carbon tax.
Obviously, Ford has stepped up to the plate and has lowered gas taxes. But he’s not alone.
In Manitoba, NDP Premier Wab Kinew fully suspended the province’s 14 cent per litre gas tax for a year. And in Newfoundland, Liberal Premier Andrew Furey cut the gas tax by 8.05 cents per litre for nearly two-and-a-half years.
It’s a tale of two approaches: the Trudeau government keeps making life more expensive at the pumps, while premiers of all stripes are fighting to get costs down.
Families still have to get to work, get the kids to school and make it to hockey practice. And they can’t afford increasingly high gas taxes. Common sense premiers seem to get it, while Ottawa has its head in the clouds.
When Ford announced his gas tax cut extension, he took aim at the Liberal carbon tax mandated by the Trudeau government in Ottawa.
Ford noted the carbon tax is set to rise to 20.9 cents per litre next April, “bumping up the cost of everything once again and it’s absolutely ridiculous.”
“Our government will always fight against it,” Ford said.
But there’s some good news for taxpayers: reprieve may be on the horizon.
Federal Conservative leader Pierre Poilievre’s promises to axe the carbon tax as soon as he takes office.
With a federal election scheduled for next fall, the federal carbon tax’s days may very well be numbered.
Scrapping the carbon tax would make a huge difference in the lives of everyday Canadians.
Right now, the carbon tax costs 17.6 cents per litre. For a family filling up two cars once a week, that’s nearly $24 a week in carbon taxes at the pump.
Scrapping the carbon tax could save families more than $1,200 a year at the pumps. Plus, there would be savings on the cost of home heating, food, and virtually everything else.
While the Trudeau government likes to argue that the carbon tax rebates make up for all these additional costs, the Parliamentary Budget Officer says it’s not so.
The PBO has shown that the typical Ontario family will lose nearly $400 this year due to the carbon tax, even after the rebates.
That’s why premiers like Ford, Kinew and Furey have stepped up to the plate.
Canadians pay far too much at the pumps in taxes. While Trudeau hikes the carbon tax year after year, provincial leaders like Ford are keeping costs down and delivering meaningful relief for struggling families.
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