As Canada weathers trade war, Trudeau Liberals mum on carbon tax cut
Despite promising "every tool at our disposal" to survive U.S. tariffs, halting the April carbon tax hike isn't in the toolbox
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OTTAWA — Despite Canada facing a devastating trade war with the potential to wreak billions in economic losses, taking April’s carbon tax increase off the table doesn’t seem to be on the Trudeau Liberals’ radar.
During Prime Minister Justin Trudeau’s Tuesday address, he promised to use “every tool at our disposal” to ensure Canadians are able to weather the storm of the trade war.
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“From expanding EI benefits and making them more flexible to providing direct supports to businesses, we will be there as needed to help,” Trudeau said during his speech. “But Canada, make no mistake — no matter how long this lasts, no matter what the cost, the federal government and other orders of government will be there for you.”
But Franco Terrazzano, federal director of the Canadian Taxpayers Federation, suspects that “no matter what the cost” won’t include important tax breaks — including doing away with Canada’s contentious carbon tax.
“The carbon tax blew a $12 billion hole in our economy last year and makes the necessities of life more expensive, the government is still planning on increasing the carbon tax by 19% on April 1 and that makes absolutely no sense.”
Despite promising to use all tools in the toolbox, the Trudeau Liberals don’t seem keen on even discussing the issue — the Toronto Sun’s inquires to both the PMO and the office of Finance Minister Dominic LeBlanc went unacknowledged.
Canada’s consumer carbon tax, since its 2019 introduction, has become a political albatross around the neck of the floundering Trudeau Liberals.
Beginning at $20 per tonne, the tax increased by $10 per year until 2022, when the mandated annual increases rose to $15.
The consumer carbon tax will increase to $80 per tonne this April, peaking at $170 per tonne by the end of the decade.
As Canadians struggle with a skyrocketing cost of living and ongoing housing shortages, public sentiment over the carbon tax has soured.
A February Leger poll showed most Canadians want the next Liberal Party leader to axe the tax, while a separate poll suggests Canadians believe consumers — rather than businesses — absorb the costs of commercial cabron levies.
Deputy Conservative Leader Melissa Lantsman told the Toronto Sun that it’s no surprise the government isn’t interested in ditching the tax, particularly with LIberal leadership hopeful Mark Carney’s years of economically advising the Trudeau Liberals.
“Now (Carney) has promised to ‘change’ Trudeau’s punishing carbon tax and bring in a bigger new shadow carbon tax that will drive up the cost of everything from gas to groceries,” she said.
“Trump’s unjust tariffs are harmful to Canadians and the higher taxes promised by Carney would make things even worse, at the worst possible time.
Ending the carbon tax is within the power the government, and can be done without recalling Parliament, Terrazzano said.
“Canadians shouldn’t pay the carbon tax on one more heating bill or one more trip to the gas station.”
bpassifiume@postmedia.com
X: @bryanpassifiume
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