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Trudeau’s home heating oil exemption shows politics trumps real affordability

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5 minute read

From the Canadian Taxpayers Federation

Author: Jay Goldberg

It turns out desperate pigs really do fly.

In a colossal policy reversal, Prime Minister Justin Trudeau announced a suspension of the carbon tax on home heating oil for the next three years. But that one concession favours one region over others and is far from enough to protect Canadians from the brutal realities of the carbon tax’s impact on family budgets.

Trudeau’s carbon tax concession was specifically targeted at Atlantic Canada because it deals with home heating oil. Forty per cent of Atlantic Canadian households use heating oil to heat their homes. Compare that to just two per cent of Ontario households.

Atlantic Canada had a special deal with Trudeau until this summer. The federal government gave Atlantic provinces permission to exempt home heating oil from their carbon taxes.

But the region’s special deal ran out in July, with full federal carbon tax pricing kicking in on Canada Day, including on heating oil.

With winter fast approaching, taxpayers in Atlantic Canada recognized the massive tax hike they were about to face just to stay warm.

Last winter, Atlantic Canadian households paid no carbon tax on their home heating oil bill. This winter, the average household was poised to spend $272.

Public opinion polls of late show Atlantic Canadians are preparing to vote with their chequebooks. The anti-carbon tax Conservatives are gaining steam.

The Conservatives forced a vote in the House of Commons on repealing the carbon tax earlier this month. One Liberal MP from Newfoundland and Labrador had the courage to stand up for his constituents and vote to repeal the tax.

Avalon MP Ken McDonald was crystal clear in articulating why he voted the way he did.

“I’ve had people tell me they can’t afford groceries,” McDonald said. “They can’t afford to heat their homes. You can’t make it more expensive on people than what they can handle. And that’s exactly what’s happening right now.”

McDonald spoke a truth Trudeau has consistently refused to hear, or at least acknowledge. The federal carbon tax is making life less affordable for Canadians.

A report from the non-partisan Parliamentary Budget Officer shows this plain as day. This year, the average Canadian family will lose between $347 and $710 due to the carbon tax, even after the rebates.

After McDonald voted to repeal the carbon tax, other Liberal MPs from Atlantic Canada voiced their concerns in public.

In the wake of all of this, Trudeau caved. He announced a three year suspension of the carbon tax on home heating oil. Conveniently, that suspension ends just after the next federal election.

Most Ontario households use natural gas to heat their homes. It’s cleaner than home heating oil, but Trudeau is keeping the carbon tax on natural gas in place.

That’s proof that this is all about politics.

The average Ontario household using natural gas will be paying a $326 carbon tax bill this winter. Those folks won’t get an exemption under Trudeau’s new plan.

If Liberal MPs in Ontario take a courageous stand like McDonald did in Newfoundland, families here wouldn’t get punished with a carbon tax for heating their homes.

What shouldn’t be lost in any of this is that carbon tax misery will still be felt coast to coast, even though many in Atlantic Canada are getting special treatment.

Families in every province will still pay carbon taxes at the pumps when filling up to drive the kids to school. And food will still be more expensive because truckers who ship the food and farmers who produce the food will still be paying carbon taxes on fuel.

It’s time for Trudeau to stop driving up the cost of living and dividing Canadians based on political calculations. The feds need to axe the carbon tax on everything everywhere, no matter the postal code.

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International

Kennedy Exposes the Swamp – Vivek and Musk Appointed to DOGE

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Armstrong Economics

 

Government corruption is not isolated to Washington. The media, academics, lobbyists, think-tanks, pharmaceutical companies, big tech, and perhaps every organization with ties to federal agencies compromises the corrupt system. It is finally time to drain the swamp.

I often speak on how bankers simply never serve time in prison because they hire the people from the agencies who are supposed to regulate them. Goldman Sachs, for example, may pay a fine but they never send their own to jail. Any fee paid is never even close to the money they actually made, rather, it is just a pay-off. We see the same system throughout every organization or university that government has tarnished. They have become above the law.

A study entitled “Lobbyists into Government” (Benjamin C. K. Egerod and Joshua McCrain (2023)) examines what occurs when a lobbyist transitions into a role in government. Lobbyists are trained to influence and persuade government officials to act on behalf of their corporation. Lobbying firms often hire men and women with prior government experience to gain access to their connections. There are no laws preventing these individuals from entering the government, as both sides of the aisle are drenched in corruption. It has become one giant revolving door. As they say, “It’s one big club and you’re not in it.”

CorruptRegulators

Anthony Fauci acted as the director of the National Institutes of Health while also acting as a top funder of bioweapon research at the Wuhan Institute of Virology. Stephen Hahn once served as the FDA commissioner in charge of regulating Moderna, one of the pioneers of the COVID-19 vaccine, and then Hahn went on to work directly for Moderna. Scott Gottlieb played the same move with the FDA and Pfizer, as did Mark McClellan with the FDA and Johnson & Johnson.

Kennedy said that the new government would listen to whistleblowers like Edward Snowden, who had been forced into hiding for speaking out against blatant corruption. Countless individuals have risked their freedom and lives to raise the alarm on the magnitude of government corruption. They have been demonized by the media as conspiracy theorists or even domestic terrorists.

The swamp has expanded to every corner of the US. Universities and think tanks produce studies to align with their funders’ political interests. We must starve these corrupt actors of government funds. Then, the new administration must examine how extensively this corruption damaged American lives. We allowed bad actors like Fauci to sell us on the idea of a never-ending pandemic blamed on Chinese peasants at a wet market when he was actively funding gain-of-function research. Kennedy, in particular, has a bone to pick with Fauci.

The Biden Administration focused on multiplying the public sector and expanding government oversight. Trump has appointed Elon Musk and Vivek Ramaswamy to lead the Department of Government Efficiency (DOGE). “Together, these two wonderful Americans will pave the way for my administration to dismantle government bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure federal agencies — essential to the ‘Save America’ Movement,” Mr Trump added.

Elon.Vivek_

Elon Musk said he looks forward to draining the swamp in Washington. “All actions of the Department of Government Efficiency will be posted online for maximum transparency. Anytime the public thinks we are cutting something important or not cutting something wasteful, just let us know! We will also have a leaderboard for most insanely dumb spending of your tax dollars. This will be both extremely tragic and extremely entertaining,” he posted on X. Vivek posted that they “will not go gently” on corrupt officials.

In addition to damaging American society and aiding in the demise of our very civilization, this corruption is extremely expensive. Trump noted: “Importantly, we will drive out the massive waste and fraud which exists throughout our annual $6.5 Trillion Dollars of Government Spending. They will work together to liberate our Economy, and make the U.S. Government accountable to ‘WE THE PEOPLE.’”

This is one of the main reasons why they attempted to assassinate Trump. The politicians crying that Trump will have them imprisoned know they were acting with ill intent. Our public servants must serve America and American interests. Our food, medicine, education, and every area of life must be free of exploitative practices that only benefit the establishment. IT IS TIME TO DRAIN THE SWAMP.

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Automotive

Bad ideology makes Canada’s EV investment a bad idea

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Dan McTeague

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It doesn’t bode well for our country that our economic security rests on tariff exceptions to be negotiated by Liberal politicians who have spent the majority of Trump’s public life calling him a “threat to liberal democracy” and his supporters racists and fascists. Their hostility doesn’t lend itself to fruitful diplomacy. In any event, Trump’s EV rollback and aggressive tariffs will spell disaster for the Canadian EV sector.

What does Donald Trump’s resounding win in the recent U.S. election mean for Canada? Unfortunately, there doesn’t seem to have been much thought about the answer to this question in Ottawa, because the vast majority of our political and pundit class expected his opponent to be victorious. Suddenly they’re all having to process this unwelcome intrusion of reality into their narrow mental picture.

Well, what does it mean?

It is early days, and it will take some time to sift through the various policy commitments of the incoming Trump Administration to unpack the Canadian angle. But one thing we do know is that a Trump presidency will be no friend to the electric vehicle industry.

A Harris administration would have been. But, Trump spent much of his campaign slamming EV subsidies and mandates, pledging at the Republican National Convention in July that he will “end the electric vehicle mandate on day one.”

This line was so effective, especially in must-win Michigan, with its hundreds of thousands of autoworkers, that Kamala Harris was forced to assure everyone who listened that the U.S. has no EV mandate, and that she has no intention of introducing one.

Of course, this wasn’t strictly true.

First, the Biden Administration, of which Harris was a part, issued an Executive Order with the explicit goal of a “50% Electric Vehicle Sales Share” by 2030. The Biden-Harris Administration (to use their own formulation) instructed their Environmental Protection Agency (EPA) to introduce increasingly stringent tailpipe emission regulations on cars and light trucks with an eye towards pushing automakers to manufacture and sell more electric and hybrid vehicles.

Their EPA also issued a waiver which allows California to enact auto emissions regulations that are tougher than the federal government’s, which functions as a kind of back-door EV mandate nationally. After all, auto companies aren’t going to manufacture one set of vehicles for California, the most populous state, and another for the rest of the country.

And as for intentions, though the Harris camp consistently held that her prior policy positions shouldn’t be held against her, it’s hard to forget that as senator she’d co-sponsored the Zero-Emission Vehicles Act, which would have mandated that all new vehicles sold in the U.S. be “zero emission” by 2040. During her failed 2020 presidential campaign, Harris accelerated that proposed timeline, saying that the auto market should be all-electric by 2035.

In other words, she seemed pretty fond of the EV policies which Justin Trudeau and Steven Guilbeault have foisted upon Canada.

For Trump, all of these policies can be filed under “green new scam” climate policies, which stifle American resource development and endanger national prosperity. Now that he’s retaken the White House, it is expected that he will issue his own executive orders to the EPA, rescinding Biden’s tailpipe instructions and scrapping their waiver for California. And though he will be hindered somewhat by Congress, he’s likely to do everything in his power to roll back the EV subsidies contained in the (terribly named) Inflation Reduction Act and lobby for changes limiting which EVs qualify for tax credits, and how much.

All of this will be devastating for the EV industry, which is utterly reliant on the carrots and sticks of subsidies and mandates. And it’s particularly bad news for the Trudeau government (and Doug Ford’s government in Ontario), which have gone all-in on EVs, investing billions of taxpayer dollars to convince automakers to build their EVs and batteries here.

Remember that “vehicles are the second largest Canadian export by value, at $51 billion in 2023 of which 93% was exported to the U.S.,” according to the Canadian Vehicle Manufacturers Association, and “Auto is Ontario’s top export at 28.9% of all exports (2023).”

Canada’s EV subsidies were pitched as an “investment” in an evolving auto market, but that assumes that those pre-existing lines of trade will remain essentially unchanged. If American EV demand collapses, or significantly contracts without mandates or tax incentives, we’ll be up the river without a paddle.

And that will be true, even if the U.S. EV market proves more resilient than I expect it to. That is because of Trump’s commitment to “Making America Great Again” by boosting American manufacturing and the jobs it provides. He campaigned on a blanket tariff of 10 percent on all foreign imports, with no exceptions mentioned. This would have a massive impact on Canada, since the U.S. is our largest trading partner.

Though Justin Trudeau and Chrystia Freeland have been saying to everyone who will listen how excited they are to work with the Trump Administration again, and “Canada will be fine,” it doesn’t bode well for our country that our economic security rests on tariff exceptions to be negotiated by Liberal politicians who have spent the majority of Trump’s public life calling him a “threat to liberal democracy” and his supporters racists and fascists. Their hostility doesn’t lend itself to fruitful diplomacy.

In any event, Trump’s EV rollback and aggressive tariffs will spell disaster for the Canadian EV sector.

The optimism that existed under the Biden administration that Canada could significantly increase its export capacity to the USA is going down the drain. The hope that “Canada could reestablish its export sector as a key driver of growth by positioning itself as a leader in electric vehicle and battery manufacturing, along with other areas in cleantech,” in the words of an RBC report, is swiftly fading. It seems more likely now that Canada will be left holding the bag on a dying industry in which we’re invested heavily.

The Trudeau Liberals’ aggressive push, driven by ideology and not market forces, to force Electric Vehicles on everyone is already backfiring on the Canadian taxpayer. Pierre Poilievre must take note — EV mandates and subsidies are bad for our country, and as Trump has demonstrated, they’re not a winning policy. He should act accordingly.

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