Economy
MP Earl Dreeshen explains opposition to budget and support for plan to replace the Carbon Tax
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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.
Business
Worst kept secret—red tape strangling Canada’s economy
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From the Fraser Institute
By Matthew Lau
In the past nine years, business investment in Canada has fallen while increasing more than 30 per cent in the U.S. on a real per-person basis. Workers in Canada now receive barely half as much new capital per worker than in the U.S.
According to a new Statistics Canada report, government regulation has grown over the years and it’s hurting Canada’s economy. The report, which uses a regulatory burden measure devised by KPMG and Transport Canada, shows government regulatory requirements increased 2.1 per cent annually from 2006 to 2021, with the effect of reducing the business sector’s GDP, employment, labour productivity and investment.
Specifically, the growth in regulation over these years cut business-sector investment by an estimated nine per cent and “reduced business start-ups and business dynamism,” cut GDP in the business sector by 1.7 percentage points, cut employment growth by 1.3 percentage points, and labour productivity by 0.4 percentage points.
While the report only covered regulatory growth through 2021, in the past four years an avalanche of new regulations has made the already existing problem of overregulation worse.
The Trudeau government in particular has intensified its regulatory assault on the extraction sector with a greenhouse gas emissions cap, new fuel regulations and new methane emissions regulations. In the last few years, federal diktats and expansions of bureaucratic control have swept the auto industry, child care, supermarkets and many other sectors.
Again, the negative results are evident. Over the past nine years, Canada’s cumulative real growth in per-person GDP (an indicator of incomes and living standards) has been a paltry 1.7 per cent and trending downward, compared to 18.6 per cent and trending upward in the United States. Put differently, if the Canadian economy had tracked with the U.S. economy over the past nine years, average incomes in Canada would be much higher today.
Also in the past nine years, business investment in Canada has fallen while increasing more than 30 per cent in the U.S. on a real per-person basis. Workers in Canada now receive barely half as much new capital per worker than in the U.S., and only about two-thirds as much new capital (on average) as workers in other developed countries.
Consequently, Canada is mired in an economic growth crisis—a fact that even the Trudeau government does not deny. “We have more work to do,” said Anita Anand, then-president of the Treasury Board, last August, “to examine the causes of low productivity levels.” The Statistics Canada report, if nothing else, confirms what economists and the business community already knew—the regulatory burden is much of the problem.
Of course, regulation is not the only factor hurting Canada’s economy. Higher federal carbon taxes, higher payroll taxes and higher top marginal income tax rates are also weakening Canada’s productivity, GDP, business investment and entrepreneurship.
Finally, while the Statistics Canada report shows significant economic costs of regulation, the authors note that their estimate of the effect of regulatory accumulation on GDP is “much smaller” than the effect estimated in an American study published several years ago in the Review of Economic Dynamics. In other words, the negative effects of regulation in Canada may be even higher than StatsCan suggests.
Whether Statistics Canada has underestimated the economic costs of regulation or not, one thing is clear: reducing regulation and reversing the policy course of recent years would help get Canada out of its current economic rut. The country is effectively in a recession even if, as a result of rapid population growth fuelled by record levels of immigration, the GDP statistics do not meet the technical definition of a recession.
With dismal GDP and business investment numbers, a turnaround—both in policy and outcomes—can’t come quickly enough for Canadians.
Business
‘Out and out fraud’: DOGE questions $2 billion Biden grant to left-wing ‘green energy’ nonprofit`
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From LifeSiteNews
The EPA under the Biden administration awarded $2 billion to a ‘green energy’ group that appears to have been little more than a means to enrich left-wing activists.
The U.S. Environmental Protection Agency (EPA) under the Biden administration awarded $2 billion to a “green energy” nonprofit that appears to have been little more than a means to enrich left-wing activists such as former Democratic candidate Stacey Abrams.
Founded in 2023 as a coalition of nonprofits, corporations, unions, municipalities, and other groups, Power Forward Communities (PFC) bills itself as “the first national program to finance home energy efficiency upgrades at scale, saving Americans thousands of dollars on their utility bills every year.” It says it “will help homeowners, developers, and renters swap outdated, inefficient appliances with more efficient and modernized options, saving money for years ahead and ensuring our kids can grow up with cleaner, pollutant-free air.”
The organization’s website boasts more than 300 member organizations across 46 states but does not detail actual activities. It does have job postings for three open positions and a form for people to sign up for more information.
The Washington Free Beacon reported that the Trump administration’s Department of Government Efficiency (DOGE) project, along with new EPA administrator Lee Zeldin, are raising questions about the $2 billion grant PFC received from the Biden EPA’s National Clean Investment Fund (NCIF), ostensibly for the “affordable decarbonization of homes and apartments throughout the country, with a particular focus on low-income and disadvantaged communities.”
PFC’s announcement of the grant is the organization’s only press release to date and is alarming given that the organization had somehow reported only $100 in revenue at the end of 2023.
“I made a commitment to members of Congress and to the American people to be a good steward of tax dollars and I’ve wasted no time in keeping my word,” Zeldin said. “When we learned about the Biden administration’s scheme to quickly park $20 billion outside the agency, we suspected that some organizations were created out of thin air just to take advantage of this.” Zeldin previously announced the Biden EPA had deposited the $20 billion in a Citibank account, apparently to make it harder for the next administration to retrieve and review it.
“As we continue to learn more about where some of this money went, it is even more apparent how far-reaching and widely accepted this waste and abuse has been,” he added. “It’s extremely concerning that an organization that reported just $100 in revenue in 2023 was chosen to receive $2 billion. That’s 20 million times the organization’s reported revenue.”
Daniel Turner, executive director of energy advocacy group Power the Future, told the Beacon that in his opinion “for an organization that has no experience in this, that was literally just established, and had $100 in the bank to receive a $2 billion grant — it doesn’t just fly in the face of common sense, it’s out and out fraud.”
Prominent among PFC’s insiders is Abrams, the former Georgia House minority leader best known for persistent false claims about having the state’s gubernatorial election stolen from her in 2018. Abrams founded two of PFC’s partner organizations (Southern Economic Advancement Project and Fair Count) and serves as lead counsel for a third group (Rewiring America) in the coalition. A longtime advocate of left-wing environmental policies, Abrams is also a member of the national advisory board for advocacy group Climate Power.
DOGE is currently conducting a thorough review of federal executive-branch spending for the Trump administration, efforts that left-wing activists are challenging in court. The official DOGE website currently claims credit for a total estimated savings of $55 billion.
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