The True Costs of the Carbon Tax
Plus what Conservatives did in the House this week, fighting unscientific federal vaccine mandates, and more
The True Costs of the Carbon Tax
Last week, the Parliamentary Budget Officer (PBO) released a report on the federal government’s carbon pricing program, or carbon tax, and analysed the fiscal and economic impacts under their new policy agenda, which will see the tax on carbon increase by $15 a year in 2022 until it hits $170 per tonne in 2030. The study revealed that most households were financially worse off under the carbon tax when considering the impact of the tax on the broader economy. In Alberta, the average household will have a net cost of $2,282, which will grow progressively higher as larger households deal with larger net costs. The report also found that the carbon tax would lead to a 1.3% reduction in GDP growth lower in 2030, and labour income could be as much as 2.6% lower. Previous studies conducted by the PBO had only focused on the direct fiscal impact of the tax on households, whereas this report focused on the negative economic impact upon the economy, which offers a more accurate and comprehensive assessment.
In 2018, I questioned senior Finance Department bureaucrats about the rebate system proposed under the carbon pricing legislation. I was informed then that there would be a “transparent public process” by which the federal government will designate how the money will be returned. They had assured parliamentarians and Canadians that the carbon levy would not have significant impacts on household finances as the money would be rebated directly to individuals and families. However, all we have gotten is ambiguity and misinformation about the costs associated under this legislation. Environment Minister Steven Guilbeault had claimed on Twitter that 8 out of 10 families in provinces utilizing the federal system get back more than what they paid. Yet, in Alberta and Ontario, 80% of householders will be worse off under carbon pricing within just a few years, a complete inversion of what the Liberals promised, and this was from the Minister managing the program. Liberal MPs often cite the same talking point that the average family of four benefits from carbon rebates, yet this is only barely true in averages. The policy-making simply demonstrates how out-of-touch the federal government is from the rest of the country. The PBO noted that the government’s assessments did not include important factors such as reduced growth in employment and investment incomes from the higher carbon costs, a crucial factor in determining overall economic impact. Considering the economic fallout from the COVID-19 pandemic and the lockdowns that led many businesses to close their doors for good, the government should have reconsidered the utility of the policy. Instead, they are forging on with a plan that will hurt Canadian households, hinder economic growth, and pile on costs that will hurt the bottom line for many. Canadians do not need more Ottawa knows best policy-making, they need costs reduced immediately.
Taking a stand against unscientific vaccine travel mandates
Meet Chloe. She's from my riding and has aspirations of becoming an astronomer. At 14, she's been able to raise $2000 to attend NASA Space Camp in Alabama. She's smart, ambitious, and driven. There's only one thing that’s in the way of her making the trip that could change her life: the federal government's unscientific vaccine mandates for domestic travel. Chloe is unvaccinated. The camp doesn’t require participants to be vaccinated, but our federal restrictions stand in Chloe’s way. I recently sponsored an online e-petition calling upon the government to end the domestic vaccine passport requirement for Canadian citizens and permanent residents taking domestic flights. While all provincial governments have either announced the end of the vaccine passport system in their jurisdictions or a date when it will end very soon, the federal government is the last holdout. Add your name to the petition at the link below.
Bank of Canada to raise interest rates ‘faster than expected’
Senior economists expect the Bank of Canada to raise interest rates by half a percent when they meet in April, bringing the rate up to 1 per cent. The movement is suggestive of more aggressive action being taken from the Bank to counter the skyrocketing inflation we have seen in Canada’s economy, which just hit a rate of 5.7% in February. What does this mean for Canadians? As the Bank raises rates, lending and mortgage rates will soon follow suit. According to analysts at CIBC, a one percent increase in mortgage rates from current levels will cost an average new buyer $230 or 12% more in additional monthly interest payments. This could get worse. Right now, an uninsured 25-year mortgage of $400,000 at a 1.5% rate costs $1,599 a month. Should that rate increase to the rate of four percent, where fixed rate loans are already at, the monthly payment increases by more than $500 a month. That’s $500 less for home owners to spend on other essential goods, an expense they cannot afford now b this economy. The Liberal government’s failure to fight inflation, ensure fiscal discipline, and shore up supply chains has contributed to further economic stress for Canadians. We can no longer afford this.
What Conservatives did in the House this week
This week in the House, Conservatives called on the government to implement visa-free travel for Ukrainians who are fleeing the full-scale invasion of their country. Canada had already promised to expedite Ukrainian applications, however, it was still taking people weeks to complete certain parts of the application. While there was a lack of Liberal support, the motion did pass to allow Ukrainians to come here visa-free. This is a huge accomplishment to better help the people of Ukraine leave and get to safety here in Canada quicker. Conservatives will continue to do their job holding the government to account in Parliament and stand with the people of Ukraine.
The Conservatives also Introduced a motion this past week calling on the Liberals to exercise fiscal responsibility in their budget for 2022. The motion called for no new taxes and a plan to balance the budget after years of excessive spending that has led to this massive inflation crisis. If the NDP-Liberal government continues its streak of fiscal irresponsibility, it will continue to be disastrous to the Canadian economy and fuel inflation even more than the 5.7% we are already facing. Conservatives will continue to fight for responsible spending and alleviate the inflation that has been caused by the massive amounts of spending that occurred throughout the pandemic.
Recognizing George Asselbergs as Righteous Among the Nations
On March 31st, I was honoured to join constituent of Calgary Shepard Fie Hulsker and her family to witness the posthumous recognition of her late father George Asselbergs as Righteous Among the Nation. The special recognition was held at the Reform Synagogue B’nai Tikvah in Calgary with guests from the Calgary and Canadian Jewish communities along with Premier Jason Kenney. This is a rare and distinguished recognition given by the State of Israel and the Yad Vashem Holocaust Memorial and Museum in Jerusalem to those who risked their lives to protect Jews from the Nazis during the Holocaust. Every story is incredible and every life saved is sacred.
Under U.S regulations Chloe needs proof of vaccination to go to Alabama.