Before you accept Prime Minister Justin Trudeau’s claim his carbon tax is going to make almost everyone richer, you might want to factor in that you’ll be paying the federal goods and services tax (GST) on top of it.
And that this will pour hundreds of millions of additional dollars into federal coffers from Canadian taxpayers annually, despite Trudeau’s claim his carbon tax is “revenue neutral” for his government.
It isn’t, as the federal Conservatives have pointed out.
Because the 5% GST is applied to a broad range of goods and services after all other taxes and prices have been included, it will also apply to Trudeau’s carbon tax, as a tax on a tax. (Or, in some cases, a tax on a tax on a tax.)
The same is true for provincial sales taxes, when it comes to assessing the full impact of Trudeau’s carbon tax of $20 per tonne of industrial greenhouse gas emissions this year, rising to $50 per tonne in 2022 and after that, if Trudeau wins re-election on Oct. 21, who knows?
For Ontario households, that means in calculating the true cost of Trudeau’s carbon tax on us, we have to add on the 13% HST (5% GST, plus 8% provincial sales tax) to it, for gasoline, natural gas and many other goods and services.
Ironically, the Ontario government is also getting increased revenue from Trudeau’s carbon tax which Premier Doug Ford, who is challenging Trudeau’s carbon tax in court, doesn’t want.
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See Also:
(1) Trudeau’s Liberals judge judicial appointments based on party affiliation
(2) Progressive plaudits abound as Ottawa declares climate emergency
(3) Big stink forces Trudeau to take out the trash
(4) Tragedy of errors created when the RCMP aren’t honest with the public
(5) It’s time to talk about mandatory national service for Canadian youth
