Canada should follow other countries by cutting taxes to combat inflation
OTTAWA, ON: The Canadian Taxpayers Federation is calling on the federal government to join other countries in cutting taxes to help taxpayers deal with a rising cost of living.
“Canadians are fueling up at the pumps and then worrying about whether they have enough left over for ground beef at the grocery store,” said Franco Terrazzano, Federal Director of the CTF. “Inflation is a key economic issue facing Canadian families and our politicians need to wake up and provide some relief.”
Prices increased by 4.8 per cent year over year, according to inflation data released by Statistics Canada today.
The federal carbon tax has increased twice during the pandemic and is scheduled to increase again to 11 cents per litre of gasoline on April 1, 2022. Prime Minister Justin Trudeau said he will increase the carbon tax to nearly 40 cents per litre of gas by 2030 and impose a second carbon tax through fuel regulations that could add an additional 11 cents per litre.
Canadian workers making more than $64,900 will see their payroll tax bills increase by $396 this year. The federal government is set to increase alcohol taxes for the third time during the pandemic on April 1.
While Canada is raising taxes, other jurisdictions are providing relief during the pandemic:
- South Korea reduced gas taxes by 20 per cent for six months
- Spain cut its value added tax on electricity from 21 to 10 per cent until April 30
- Italy is cutting income and business taxes
- France is reducing electricity taxes
- The United Kingdom cut fuel taxes on short flights
- Poland is reducing food and fuel taxes
- Sri Lanka is cutting food and medicine taxes
- India cut fuel taxes
- Twenty-five Indian states and union territories cut fuel taxes
- Eleven American states are cutting income or business taxes rates
- Florida Governor Ron DeSantis is proposing a state gas tax holiday
- New Jersey reduced its gas tax by eight cents per gallon
“High taxes and soaring prices are making the tough times tougher in Canada,” said Terrazzano. “While other countries are cutting taxes, all we get from Canadian politicians are higher tax bills. It’s time for Ottawa to provide some tax relief and make life in Canada a little more affordable.”