That $50 tonne carbon tax Prime Minister Trudeau has announced for 2022 comes with a bigger price you probably haven’t thought of. Once the higher product cost is set because of the carbon tax, then they’ll add the GST on top of that.
“There are necessities of life that Canadians have to buy, not all of which are exempt from the GST,” said Paige MacPherson, the Alberta director of the Canadian Taxpayers’ Federation. “So if there is GST applied on top of that we know that the carbon tax increases the cost of everything that moves. So a lot of those items that you’ll see in grocery stores that are not GST exempt are going to have a tax on tax levied on them.”
Even before the GST becomes the tax on top of a tax, the CTF calculated you’ll each be paying more than one-thousand dollars. “$1,028 per person, and that’s annually in 2022. That’s about $2,600 per house hold in Canada based on the average house hold and that does not include the tax on tax.”
The other calculation is going to be harder to figure since it’s based on consumption.
Another hidden cost, is lost opportunity MacPherson said, anticipating that companies won’t even set up shop in Canada, discouraged that they’ll be forced to charge you higher prices.
“That doesn’t include those losses of investment in the tax on tax, so it’s a big hit and I’m surprised the Prime Minister went as aggressively with that price as he did, seemingly not really engaging the provinces on this.”