WhatFinger


Ontario New Taxes

Neither Dalton Nor David McGuinty Should Push Another Carbon Tax



With gas prices soaring and Stephane Dion suggesting a new federal carbon tax, it is time for Ontario Premier Dalton McGuinty to make it clear where he stands on this issue. The last thing Ontario needs is another tax. Especially one that follows the new fad of protecting 'Mother Earth' when, in practice, carbon taxes do anything but.

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Fuel already is highly taxed. Sadly, too much of it is being used for general revenues and pet projects instead of fixing roads, bridges and highways like it was intended. Before heaping another burden on Ontario families, the premier should implement a Gas Tax Accountability Act and dedicate 100% of what is already collected in gas taxes to fixing roads and bridges. In 2008/09 Ontario is projected to collect $4.166 billion in gas taxes and license fees. This is an increase over last year when $4.110 billion was collected. Last year 53% of this revenue was spent on roads, bridges and highways. This year the spending is projected to fall to 48%. Way back in 2006/07, 67% of provincial gas tax revenues went into roadways. The arrows are pointed in the wrong direction. Prior to releasing his 2008 budget, Premier McGuinty was asked about imposing another carbon tax. He was clear that there would be no new carbon tax in the 2008 budget. And there wasn't. However, when pressed on the issue he clearly refused to discount the idea in the future. With the summer driving season about to begin, motorists are keenly aware of high and growing gas prices and should be reassured that they will not be hit yet again. Any talk about carbon taxes should start with the recognition that "carbon tax" is simply a fancy euphemism for gas tax - save the fact it would apply to all fossil fuels including heating. This is nothing new. The federal government, the provinces and even some cities already impose taxes of various forms on fuels. There are provincial gas taxes; federal gas taxes; and British Columbia, Quebec, and Manitoba already have imposed extra taxes on carbon, draining cash from drivers, businesses and families. The total amount of fuel taxes to be collected by the federal and provincial government in 2008/09 for gas and diesel alone is projected to be $13.9 billion. In Ontario last year the average pump price for gas was $1.11 per litre - 31% of the price is tax. Ontarions pay 14.7¢/litre in provincial tax and 10¢/litre in federal tax. To add insult to injury, the GST is applied to the same! If anything, these taxes should be lowered. At minimum, motorists deserve to have talk of yet another hit in the pocketbook clearly revoked. This is no small carbon tax. Put simply, a gas tax is a carbon tax, a fact which the premier and his brother, David McGuinty, the federal Liberal Environment critic, seem to have forgotten. Stephane Dion and David McGuinty have been advocating for a new carbon tax. They have talked about a "whole series of fiscal and other measures that can be brought to bear". The details of this new tax plan have yet to emerge. Motorists in Ontario deserve to know that the Premier will not slap them with another tax - a new carbon tax. They should hope, also, that at the next family gathering Premier Dalton will counsel his brother David that the federal Liberals should abandon the new carbon tax idea as well. There are in place, already, carbon taxes in the form of gas taxes. These taxes need to come and be better used to fix roads, not to be increased.


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Kevin Gaudet -- Bio and Archives

Kevin Gaudet, is former the Federal Director, Canadian Taxpayers Federation


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