TORONTO, ON – As part of its annual Gas Tax Honesty Day, the Canadian Taxpayers Federation (CTF) has calculated the expected airline fare increases caused by the Ontario Liberal’s proposed 148 per cent tax hike on aviation fuel. The CTF’s new report, Failure to Launch: How Ontario is Being Held Down by Bad Aviation Policy highlights the existing taxes, fees, charges, and rents that make flying in Canada very expensive, and shows how added taxes will impact both the industry and travellers.
“Kathleen Wynne said her budget wouldn’t raise taxes on the middle class,” said CTF’s Ontario director Candice Malcolm. “Who does she think flies? Business travellers and wealthy Canadians may not notice this tax hike, but middle class parents visiting their kids, reconnecting with family or taking a well-earned holiday certainly will.”
“This new tax will simply make it more out of reach for everyday Ontario families to afford a trip to Disney World or to visit family overseas,” said Malcolm.
CTF calculated the hike for departures to various destinations for family of four:
|
Toronto Pearson to: (Destination) |
Price Increase from Tax Hike, Family of 4 |
Aviation Fuel Tax Portion of 4 Tickets, After Tax Hike |
|
Boston, New York, DC |
$27.88 |
$46.72 |
|
Florida, Caribbean, Mexico |
$31.79 |
$53.27 |
|
Asia, Middle East |
$119.76 |
$200.68 |
“Wynne and the Liberals are ignoring the fact that Toronto is already the most expensive airport in the world, thanks to existing government policies,” said Malcolm. “This tax hike will just make things worse.”
“Canadian airports are already losing to small U.S. airports that offer significantly cheaper prices thanks to lower taxes,” continued Malcolm.
The Buffalo airport has a page dedicated to Canadian travellers on its website. The site shows a fare comparison between Pearson and Buffalo on a flight to Orlando, Florida. In this scenario, a family of four would save $672.59 by flying from Buffalo. Premier Wynne’s new aviation fuel tax would add an additional $31.79 to that spread.
“Ontario is losing its ability to compete, thanks to Kathleen Wynne and policies by both the federal and provincial governments,” said Malcolm. “This tax hike is making an already bad situation worse, and unfortunately is just the latest example of bad policy that will drive jobs and people out of Ontario.”
CTF’s report, Failure to Launch: How Ontario is Being Held Down by Bad Aviation Policy can be found here: http://taxpayer.com/media/Failure%20to%20Launch%20CTF%20Report(3).pdf
CTF’s national Gas Tax Honesty Day report can be found here: http://www.taxpayer.com/media/
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