By MorinvilleNews.com Staff
The Canadian Taxpayers Federation (CTF), an advocacy group focused on lowering taxes and government spending, is calling for the federal government to scrap the carbon tax following a new report from the Parliamentary Budget Officer (PBO). The report confirms that the carbon tax is costing the average household more than they receive back in rebates.
“Once again, the PBO confirms the carbon tax costs average families hundreds of dollars more than they get back in rebates,” said Franco Terrazzano, Federal Director of the CTF. “This PBO report proves that politicians’ favourite talking point is incorrect and it proves the carbon tax is making life harder for Canadians.”
The Trudeau government has claimed that families would be “better off” under its carbon tax and rebate system. However, the PBO report contradicts this, showing that the costs associated with the carbon tax, including federal fuel charges and GST, outweigh the benefits for households in many provinces.
In 2024-2025, households in Ontario will face the highest net loss of $399, while families in Alberta, Saskatchewan, and other provinces will also incur significant costs. The PBO also pointed out that Canada’s emissions are not large enough to materially affect global climate change, raising further questions about the tax’s effectiveness.
The report additionally notes that the federal government collects GST on top of the carbon tax, a tax-on-tax arrangement that is expected to cost taxpayers an extra $400 million this year, without any corresponding rebate.
“It’s simply not credible to believe the government can impose a carbon tax, skim some money off the top, charge its sales tax on top of the carbon tax, and then make families better off,” Terrazzano said, urging Prime Minister Justin Trudeau to use the PBO findings as a reason to reconsider the policy.
The PBO report breaks down the net costs for average households across provinces for the 2024-2025 fiscal year. Households in Ontario face the highest net cost at $399, followed by Prince Edward Island at $240 and Nova Scotia at $238. In New Brunswick, the cost is $197, while households in Newfoundland and Labrador face a $170 burden. Alberta, Saskatchewan, and Manitoba see slightly lower but still notable net costs, with households paying $213, $154, and $152, respectively. These figures highlight the financial impact of the carbon tax on Canadian families, exceeding the rebates they receive.
The carbon tax remains a divisive issue, with growing concerns about its impact on the cost of living for Canadians.
