In spite of growing inflation and increased interest rates, the federal government of Canada has decided to implement additional taxes beginning on April 1. The Canadian Taxpayer Federation has condemned these tax hikes as “undemocratic” for the reasons stated in the previous sentence (CTF). This article investigates the recent hikes in taxes and discusses the effects such increases will have on Canadian people.
Carbon Tax Hike
The federal government of Prime Minister Justin Trudeau initially imposed the carbon price in 2019, and on April 1, 2019, Trudeau will hit Canadians with an increase in that tax. The rise in the federal carbon tax will result in an additional 14 cents being added to the price of each liter of gasoline and each cubic meter of natural gas. Because the majority of Canadians heat their homes with natural gas, this increase means that the carbon tax will account for fifty percent of their monthly expense.
In spite of subsidies offered by the government, it is anticipated that the increase in the carbon tax will result in a cost of between $402 and $847 for the typical household in the year 2023. Since the beginning of the COVID-19 outbreak, this represents the fourth time that Trudeau has hiked the tax on carbon. Franco Terrazzano, the federal director of the CTF, contends that these tax increases will give Canadians a “hangover in the new year,” since the government is making matters worse by raising taxes at a time when Canadians are struggling to purchase petrol or food.
Clean Fuel Tax
In addition to the recent increase in taxes, a second carbon tax will be implemented in July in the shape of new restrictions for so-called “clean fuel.” Because of these laws, additional ethanol must be added to gasoline, which will result in an increase of 13 cents per liter in the price of gasoline by the year 2030. According to a report by LifeSiteNews, the additional expense of this second carbon tax would add an additional $1,277 to the yearly salary of the typical Canadian worker.
Concerns About the Increasing Cost of Living in Conjunction with Environmental Objectives
In accordance with the “2030 Agenda for Sustainable Development” established by the United Nations, the current environmental objectives of the Trudeau administration include the gradual elimination of coal-fired power plants, the reduction of fertilizer use, and the limitation of natural gas consumption over the course of the following decades. The “climate change” agenda, according to detractors of the Conservative Party of Canada (CPC), is a major contributor to the cost-of-living issue that the nation is currently experiencing.
Alcohol Tax Hike
On April 1, 2018, taxes on wine, beer, and spirits will be increased by 6.3 percent as a result of an alcohol estimator tax that was approved into law by the Trudeau administration in 2017. Taxes account for close to half of the total cost of alcoholic beverages in Canada. A proposal that does not oblige the government to change its plan to raise taxes on alcoholic beverages by 1.4% on April 1, 2023, was recently approved by members of Parliament at the federal level. Notwithstanding this, the hike is still scheduled to go into effect.
Increased Pay for Members of Parliament and the Prime Minister
On April 1, federal lawmakers and Prime Minister Trudeau himself will receive a pay raise, which is a further insult to the people of Canada. There will be a $5 rise in the backbench members of Parliament’s annual wage. Franco Terrazzano, a member of the CTF, has the opinion that Prime Minister Trudeau ought to “listen to Canadians and MPs and cancel this undemocratic tax hike.” According to Franco, “Trudeau ought to cancel this undemocratic tax hike that will increase the cost of living at a time when Canadians are struggling to stretch our paycheques.”
The Canadian people are going to have to deal with increased federal taxes despite the fact that inflation is on the rise. Some opponents claim that the government’s agenda about “climate change” is contributing to the cost-of-living issue in the nation. Despite the fact that strong inflation is prompting several nations to reduce federal gasoline prices, the government of Prime Minister Justin Trudeau is increasing both carbon taxes and fuel restrictions. It remains to be seen how these tax increases will affect Canadian people in the long run, particularly in light of the fact that the cost of living is continuing to go up.