A report by economist and University of Guelph Professor Ross McKitrick has exposed the true cost of the government's Clean Fuel Standard.
This second carbon tax will increase household energy costs by 2.2% to 6.5% a year per household – an extra tax of $1,277 a year per worker.
In the face of 11.4% food inflation where families are struggling to afford basic necessities, the government is going to make things worse.
Contrary to its claim that there will be no negative effect on Canada's GDP, the impact on the economy could be significant. McKitrick's report cites that by 2030, Canada's GDP will be 1.3% lower than if there was no second carbon tax.
This tax will raise unemployment and the cost of living, and reduce investment and lessen government revenues.
It will also lead to an increase in the consolidated government deficit in every year of implementation. Extra government debt accumulated by 2040 because of the Clean Fuel Standard is estimated to reach as high as $95.2 billion.
This second carbon tax will not reduce emissions, but it may permit the government to say it reduced Canada's carbon intensity footprint. However, any such reductions by this tax will be achieved solely on the backs of working Canadians.
I rose in the House of Commons to raise this matter directly with the government:
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