Taxpayers Federation condemns feds for 'misleading' Canadians on carbon tax

The Canadian Press / Spencer Colby

The Canadian Taxpayers Federation (CTF) is correcting the record on the federal carbon tax, with taxpayers set to receive another round of carbon tax rebates in January.

"The Parliamentary Budget Officer shows politicians are using magic math to sell their carbon tax," said Franco Terrazzano, Federal Director of the CTF. "The PBO is clear: the carbon tax costs families hundreds of dollars more than the rebates they get back."

The Trudeau government claims "families are going to be better off" with its carbon tax and rebates. However, a PBO report shows this is incorrect. 

The carbon tax will cost the average household between $402 and $847 in 2023, even after the rebates, according to the PBO. By 2030, Alberta and Saskatchewan's top fifth income earners will pay $7,402 and $5,123, respectively.

On April 1, 2023, the carbon tax will increase to 14 cents per litre of gas and 12 cents per cubic metre of natural gas on April 1. But Quebec's provincial cap and trade carbon tax currently cost about nine cents per litre of gas with a minimum requirement of 4.8 cents per litre. 

Between 2018 and 2022, the federal carbon tax backstop increased by $10 per tonne per year, reaching $50 per tonne in 2022.

Following back-to-back annual carbon tax hikes, the Parliamentary Budget Officer (PBO) estimated in a report released in late June that it would add $120 per tonne in carbon tax by 2030.

According to a federal government backgrounder on the federal carbon tax, the Trudeau Liberals "[remain] committed to ensuring that carbon pricing is in place across Canada at a similar level of stringency."

However, Quebec's provincial carbon tax will rise to 22.5 cents per litre of gas by 2030.

"This estimate is based on a set of assumptions, including a price for PEPS [carbon market] emission allowances of $97 per tonne in 2030, which is consistent with private sector forecasts," said a document provided to the media.

Other provinces will pay 37 cents in carbon taxes per litre of gas by 2030 at $170 per tonne. 

Last year, Terrazzano condemned the Trudeau Liberals' dealings with Quebec, adding: "[It] shows the carbon tax was always about politics, not the environment."

Because of the discrepancy, Albertans will pay 67.8 cents in fuel taxes per litre of gas at that time, while Saskatchewan and Manitoba will pay over 80 cents.

"If you're willing to believe the feds will raise taxes, skim some off the top and somehow make families better off, then we have an ocean-side property in Regina to sell you," said Terrazzano. "Prime Minister Justin Trudeau should scrap the carbon tax to save families hundreds of dollars annually."

Since 2019, the feds have spent $116 million and hired 330 bureaucrats to administer the carbon tax and rebates.