UCP to save taxpayers hundreds of dollars a year at the pump by scrapping Notley/Trudeau carbon tax
EDMONTON, AB (April 1, 2019): A United Conservative Government would save Albertans from the Notley/Trudeau alliance’s planned 11.2c/L carbon tax on gas.
Yesterday, the Premier unveiled her party’s platform but conveniently left out the fact that under her deal with Justin Trudeau, an NDP government would increase the carbon tax by at least 67% to $50/tonne. The increase alone would mean another 5c/L every time Albertans hit the pumps.
While Rachel Notley sat in idle, allowing Albertans to be burdened by this job killing tax on families, the United Conservatives joined a Premiers Scott Moe and Doug Ford led effort to fight the Trudeau Carbon Tax in court as an intervenor.
The United Conservative plan to take Trudeau to court over his unconstitutional overreach means that families would save hundreds of dollars per year on gasoline fill-ups alone. These savings don’t include the extra costs on heating, electricity, and groceries that would otherwise hit taxpayers under the Notley/Trudeau plan.
“Albertans deserve a break from the wallet-busting policies imposed on them by the Trudeau-Notley alliance. They deserve leadership that will put an end to the carbon tax cash grab that is all economic pain and no environmental gain,” Kenney said.
“When you add it up, a mom and dad with a minivan and a pickup truck will end up paying in excess of $1,800 less in carbon taxes over the next four years. And that’s just the gas alone.”
Today, Justin Trudeau’s carbon tax plan came into effect, raising the cost on everything across the country. It may be April Fools, but this is no joke.
“Most common sense Albertans see the carbon tax for what it is, a government cash grab on the backs of hard-working families,” Kenney said. “The Premier thinks she fooled Albertans by hiding her carbon tax plans from us in the last election, but Albertans aren’t about to let her get away with that again.”
“Yesterday’s NDP platform hid the fact that she plans to hike the carbon tax cost on everything at Trudeau’s request but a United Conservative government will make things right and scrap this ridiculous, job killing carbon tax.”
Getting rid of Alberta’s Carbon Tax: The fiscal and economic impact
How the Notley/Trudeau Alliance Paved the Way for a National Carbon Tax
Liberal Environment Minister Catherine McKenna: “I negotiated that [National Climate] plan, and I can tell you with 100% certainty that without a government…a Rachel Notley government who said ‘we’re having a price on pollution, we’re going to have a hard cap on emissions from the oil sands, and we’re going to phase out coal,’ that we wouldn’t have national plan right now.” (Catherine McKenna, C-69 announcement, Feb. 8, 2018)
NDP Environment Minister Shannon Phillips: “Our carbon price increases will track with the federal legislation that will be in place at that time. We’ve been clear about that from Day 1.” (Calgary Herald, Dec. 15, 2017).
Premier Notley: “We have never outlined that $30 was where it was going to stop. People who talk about effective carbon pricing acknowledge that, as time progresses, it needs to go up.” (National Post, Nov. 30, 2016)
Details on the carbon tax: The $ Figures
The NDP’s Carbon Sales Tax takes $1.4 billion from Albertans annually at the rate of $30/tonne. When taken at the rate of $50/tonne—should the NDP be re-elected and follow through with their original plan—the carbon sales tax will cost Albertans about $2.5 billion.
At present, as of 2019, here are the individual carbon tax costs per product:
- Gasoline: 6.73 cents/litre.
- Diesel: 8.03 cents/litre.
- Natural gas $1.517/gigajoule.
- Propane: 4.62 cents/litre.
- Farm fuels are exempt, as is electricity.
- All other fuels are taxed, including aviation fuel, locomotive diesel and coal.
The UCP elimination
The United Conservative party will:
- Eliminate the $1.4 billion carbon tax with the introduction of Bill 1, The Carbon Tax Repeal Act
- Eliminate $1.1 billion in spending from the Carbon Tax.
This leaves a $300 million difference between revenue and expenditures. These are capital grants. We will move these capital grants into the Government of Alberta capital planning budget and prioritize as necessary.
The United Conservative party will also:
- Challenge the constitutionality of the Trudeau carbon tax by filing a judicial reference to the Court of Appeal, while continuing to support similar challenges by the governments of Saskatchewan and Ontario.
- Subject any future carbon tax to the Alberta Taxpayer Protection Act which requires all sales taxes to be voted on in a referendum
- Release detailed assessments of the impact of the carbon tax and the NDP’s “Climate Leadership Plan” on Alberta’s economy, and on key sectors including electricity, oil and gas, and homes
- Share an impact report with Albertans of the costs of adopting Justin Trudeau and the NDP’s plan for a $50/tonne carbon tax
Relief for small and medium-size business will average $4,500 annually
The average small and medium-sized business in Alberta consumes an estimated 1,500 gigajoules of natural gas per year. We estimate that such businesses pay $2,276 per year in gross carbon taxes for natural gas.
The average small and medium-sized business in Alberta consumes an estimated 32,689 litres of gasoline and diesel per year. We estimate that business pays $2,200 per year in gross carbon taxes for gasoline and diesel.
That’s almost $4,500 annually in carbon tax costs for every small or medium-size business.
The economic impact of eliminating the carbon tax
The United Conservative Party asked Stokes Economics (the same firm that costed the UCP balanced budget) to estimate the economic benefit of eliminating the carbon tax versus a $50 carbon tax by 2024.
The results include higher nominal and real GDP, an increase in plant and equipment investment, 6,000 more jobs and $1.9 billion more in retail sales as of 2024.
TRUDEAU-NOTLEY CARBON TAX
$20/tonne carbon tax on gasoline: 4.49 ¢/L
$30/tonne carbon tax on gasoline: 6.73 ¢/L
$40/tonne carbon tax on gasoline: 8.98 ¢/L
$50/tonne carbon tax on gasoline: 11.22 ¢/L