Carbon Tax Backlash

The Canadian Taxpayers Federation, not surprisingly, hates the idea of carbon taxes and has called upon the senior levels of government to reduce the gas tax burden on families:

"Ottawa will collect approximately $5 billion in direct gasoline and diesel taxes this year. Another $1 billion will come from the GST," said federal director John Williamson. "The good news is Ottawa will spend $1.95 billion or 37% of its gas and diesel tax revenue on roads and highway infrastructure this year. The amount will increase to 52% next year when roadway spending is scheduled to hit $2.7 billion. This level of spending exceeds the 50% target first advocated by the CTF in 2002. Four years ago the federal government spent only 7% of gas tax revenues on roads making this an impressive turnabout. This is a partial victory for motorists. To complete it, gas taxes need to be lower."

Williamson continued, "The bad news is some are calling for new taxes on most sources of energy, including gasoline. Consumers should be under no illusion, enacting a carbon tax will mean higher energy prices and a tax increase on the middle class. As a result of B.C.'s carbon tax, gas prices in the province will increase by 2.41 cents on Canada Day and by 7.23 cents in 2012. It will impact family budgets."