EGAN: Not only is the carbon tax driving inflation, it doesn't actually cut carbon

For nearly a decade the Trudeau Liberals and Singh’s NDP have competed to outdo each other in taxing and spending — with little to show for it. However, these ruinous taxes and inflationary spending have had broad negative impacts that have disproportionately hurt Canadians on fixed incomes and many others including those who like me, have young families. While the economy became and continues to become burdened by pointless taxes and failed government programs, rent and food prices are rising, homelessness and crime have tragically become a nationwide issue, and across Edmonton in particular, it is becoming unavoidable, particularly in areas like McCauley in Edmonton Griesbach. If you were struggling before, it's harder than ever now. If you were middle class, you're likely feeling the pinch. If you have options, you might be thinking of leaving. Thousands are too. What a tragedy for a once-prosperous country.While for many today Canada is broken due to the NDP/Liberal Alliance, I deeply believe that it is worth fixing. We are a beautiful nation from sea to sea to sea. Our people are stalwart and resourceful. To move forward, we need to change the very way the government thinks and acts. Since 2015 the Liberals — and since 2021 the Liberals with the support of the NDP — have put forward programs for the sake of programs. While Canadians work towards a healthy, free-market economy, Singh and Trudeau openly laud socialism.Take the carbon tax, for example, one of the most notable Liberal proposals backed by the NDP. The tax was initially put forward to reduce greenhouse gas emissions and combat climate change with minimum impact on Canadians. When the dust settled it was all about wealth redistribution.Now, according to the most recent polling done by Angus Reid, the majority of Canadians believe the carbon tax is both ineffective at combating climate change and is impacting their finances. As someone who holds a bachelor's degree in environmental practice, has worked for over 14 years in the biofuel/oil and gas sectors and also deals with the realities of a small business, this is unsurprising when you consider that the primary argument for a carbon tax is an economic one. It is believed that increasing the price of carbon-based fuels decreases the consumption of them (and therefore the production of CO2 emissions). However, I believe that there is a strong argument that this is not what occurs. A report from the International Monetary Fund in 2011 found that between 1990 and 2009, in a period of low oil prices, differences above the sample average did not produce a statistically significant change in oil consumption, or price elasticity. However, it can be noted that in a period of high oil prices, price elasticity did experience a significant change of just 0.38% when the price went above the sample average. Put into other terms, a 10% permanent increase in the price of oil only resulted in an approximately 0.7% decrease in oil demand over 20 years. Therefore if the carbon tax was ever going to work it would have to be prohibitively expensive, and many industries across the country, particularly those in the oil and gas industry that employs 800,000 Canadians directly and indirectly would likely take their emissions, jobs, and tax revenue elsewhere. This is called carbon leakage. The Liberals, of course, knew this. A 2017 leaked briefing from the Liberal Government stated that the carbon tax will need to be increased to $300/tonne to meet their climate targets, almost 4 times what it is today. According to the Canadian Taxpayers Federation, “after the most recent hike in April, the federal carbon tax now costs 17 cents per litre of gasoline, 21 cents per litre of diesel, and 15 cents per cubic metre of natural gas. Filling up a minivan costs about $13 more and a pickup truck fill costs about $20 extra just in the carbon tax.” That increase only brought up the tax to $80 per tonne. Try to imagine how much harder it would be to heat your home and drive to work if you were paying an extra 60 cents at the pump per litre. And emissions? Well, they are still rising. But none of that ever mattered to the Liberals or NDP despite demonising entire industries that are employing their own constituents in places like Edmonton Griesbach. The carbon tax is not the only failed Liberal-NDP plan, but is one of the most obvious symbols of economic strain and inefficiency. It exemplifies the broader failure of the Liberal and NDP approach: implementing programs without a clear plan for success, leaving ordinary Canadians to bear the burden of ineffective policies and stagnating the development (if not actively campaigning to shut down) of once booming sectors that are employing their own constituents. There is a way forward — it starts with electing Conservative candidates across the country, getting government priorities back on track, and finally axing the tax. By adopting a more pragmatic and results-oriented approach, we can create a government that truly serves the needs of its citizens and ensures a brighter future for all Canadians, including those in Edmonton Griesbach.David Egan is running for the nomination of the Conservative Party of Canada for Edmonton Griesbach.