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The Canadian Taxpayers Federation isn’t impressed with the federal government’s decision to reduce the carbon tax rebate for Saskatchewan residents.
Todd MacKay, the federation’s prairie director, said on Gormley this week the announcement was disappointing because the government had revealed one number before the Oct. 21 federal election and then lowered that number Tuesday.
“This is really, really frustrating – and it’s really frustrating because there’s no accountability,” MacKay said. “(The Minister of) Finance in Ottawa is just shrugging: ‘Well, hey, I don’t know. The model spit out a different number. What can I tell you?’
“Not a single Member of Parliament has had an opportunity to vote for or against this. That’s absolutely wrong and it’s really frustrating because it’s going to cost Saskatchewan taxpayers a lot of money.”
According to the federal government, a family of four in this province will qualify for rebates totalling $809 in 2020, down from the $903 that was projected last year.
The carbon tax is rising from $20 per tonne to $30 per tonne starting Jan. 1. According to SaskPower, its residential customers will pay an average of $22 more in 2020 while farmers can expect to pay $60 more next year.
The specific amount charged per customer will vary depending on consumption.
“There’s something really sinister here in this situation because if they’re saying families are going to pay more carbon tax but get less back because Ottawa is collecting less, where are they collecting less?” MacKay wondered.
“Obviously the federal government underestimated the pain in Saskatchewan’s economic struggles we’re having here and the tough time people are having creating, keeping and holding down jobs. That’s really a big concern.”
MacKay described the situation faced by a friend, who fills up his skid steer with diesel fuel every day. If his carbon tax bill increases, he’ll have to charge more for the work he does – or he could do less work.
Others could end up in the same predicament.
“A great way to reduce emissions is to reduce economic activity,” MacKay said. “When you’ve got fewer people working, you’ve got fewer emissions going. But that’s a really bad, hard way to make progress on anything.
“That seems to be part of what’s happening here. Ottawa’s assuming that we’re going to buy less fuel. That sounds like they’re assuming we’re going to have less people working as much.”
MacKay suggested the increase in the carbon tax that’s to take effect Jan. 1 will add about 2.2 cents to the price of a litre of gasoline, bringing the impact of the tax to 6.6 cents per litre. That, he said, would amount to $240 more per year for families.
That bill could be higher for those in certain industries.
“If you’re drying grain, if you’re getting grain to market, if you’re in the construction industry, if you’re in the trucking industry, you’re taking it on the chin way harder than ($240 per year),” MacKay said. “That ripples through everything. Anything that moves takes it on the chin.”
The fact the federal government is still collecting the goods and services tax on top of the carbon tax also irks MacKay.
He said it would have been an easy fix for the government to eliminate the GST on the carbon tax, but it chose not to do so.
“They’re hammering people multiple times with the carbon tax,” MacKay said. “It’s hitting you in compounding ways. It’s really frustrating and really unfair.”
