Read the original special guest column for the Toronto Sun here: https://torontosun.com/opinion/columnists/vuong-liberal-inflationary-policies-hurting-canadians
Published Jun 10, 2023
In the face of overwhelming evidence, the latest being Bank of Canada Governor Tiff Macklem’s confirmation the carbon tax contributed 0.4% to inflation, the federal Liberal government still refuses to accept reality.
While the Liberals keep their heads buried in the sand, Canadians suffer.
The carbon tax doesn’t just increase fuel costs. It makes virtually everything more expensive.
To those yelling “Just drive less,” I ask them if they plan to eat. Farmers need fuel to produce, harvest and transport food. Even if you walk or cycle to the supermarket, trucks need fuel to get that food to stores. When every step of the food supply chain — from farm to kitchen table — costs more, it’s no surprise food prices are the highest they’ve been in 40 years.
Impact from the carbon tax is not limited to fuel and food. People still have mortgages or rent to pay.
According to Canada Mortgage and Housing Corporation, the average mortgage loan in Canada is $320,298. So, the carbon tax’s 0.4% contribution to inflation is equivalent to an extra $1,281 annually in mortgage interest. With the median price of a Toronto home at a staggering $1,163,670, the reality is that it’s costing Canadians much more.
Assuming 20% down, the mortgage for an average home in Toronto would be $930,936. That 0.4% inflation from the carbon tax equals an average of $310 per month — or $3,723 per year!
A few days ago, the Bank of Canada unexpectedly raised interest rates for the ninth time since the beginning of 2022 in a bid to reduce inflation.
The prime rate is now a shocking 6.95%, the highest it has been in over 20 years. This has a direct impact on housing affordability as less people can afford the higher rates. But people still need somewhere to live. Since they can’t afford to buy, they are forced to rent. With more people chasing fewer rentals, the average monthly rent in Toronto has reached a record high of $3,122.
Whether you own or rent, the carbon tax is driving up housing costs for Canadians at a time when people can least afford it.
However, don’t tell that to the Liberals. Any constructive criticism of their policies will get you branded as anti-science, right wing or loon stick. When I dared, some MPs from the Liberal and NDP benches heckled that I am a Conservative. Caring about struggling Canadians does not dictate one’s political leanings.
I know what it’s like to worry about paying next month’s rent or having enough money to buy food — forget fresh and healthy food. It wasn’t until after high school I learned that Spam was considered a poor person’s meat alternative.
Whether through ignorance, deliberate or otherwise, and lack of empathy, the government has become disconnected from the realities Canadians face.
Liberals hold up bandage solutions, like the grocery rebate, as examples of their benevolence. They fail to note the one-time payout of $76 a single adult could receive would be lucky to cover a few groceries. Worst of all, these policies do not come from the kindness of the Liberal party. Canadian taxpayers pay for it.
The government also loves to point out the carbon tax is rebated quarterly. What it doesn’t seem to understand is people who are struggling to make ends meet can’t afford to wait three months to get some of their money back. They need relief now, not 90 days from now.
I have called relentlessly for the Liberals to provide Canadians with relief. With new records being set for food bank visits every month, I hope the federal government delivers on truly helping Canadians. It’s not too late to act.
Toronto Sun
— Kevin Vuong is an Independent MP for Spadina-Fort York. The 2021 Liberal candidate is the youngest MP of Asian heritage elected to the 44th Parliament. The son of refugees, he also serves as a naval reserve officer in the Canadian Armed Forces.
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