OTTAWA, ON: The Canadian Taxpayers Federation is calling on the federal government to rein in borrowing and provide tax relief in response to today’s Statistics Canada report that shows prices rising by 4.7 per cent in a year.
“Politicians keep talking about raising taxes, but we haven’t seen a plan showing how they’re going to make our lives a little more affordable,” said Franco Terrazzano, Federal Director with the CTF. “Canadians are worried about their grocery and gas bills and politicians can provide immediate relief by reducing taxes like other countries.”
Prices rose by 4.7 per cent over the year. That’s the largest increase since February 2003.
“Energy prices were up 25.5 per cent year over year in October, primarily driven by an increase in gasoline prices,” according to Statistics Canada.
The federal carbon tax has increased twice during the pandemic and is scheduled to increase again to 11 cents per litre of gasoline on April 1, 2022. Prime Minister Justin Trudeau said he will increase the carbon tax to nearly 40 cents per litre of gas by 2030 and impose a second carbon tax through fuel regulations that could add an additional 11 cents per litre.
Conservative Party Leader Erin O’Toole also said he would impose a carbon tax and a second carbon tax through fuel regulations.
Other governments are taking action to address affordability issues. South Korea and India reduced their gas taxes to provide relief. Ontario Premier Doug Ford promised to reduce fuel taxes. Taxes account for 31 to 42 per cent of the pump price, according to CTF analysis released in May.
Federal alcohol taxes have also increased twice during the pandemic and are set to increase again on April 1, 2022. Taxes account for about half of the price of beer, 65 per cent of the price of wine and more than three quarters of the price of spirits.
The federal government’s spending is at all-time highs while the Bank of Canada has printed more than $370 billion during the pandemic by purchasing financial assets such as government debt. The Liberal Party, Conservative Party and New Democratic party promised to increase spending by $78 billion, $51 billion and $214 billion respectively during the last election.
“Families are getting soaked by higher prices while politicians are asleep at the wheel,” said Terrazzano. “The government needs to cut taxes and stop all this borrowing, but politicians want higher taxes and billions in more spending. Politicians need to wake up and provide taxpayers with a concrete plan to stop these rising prices.”