Federal Government Refuses to Give Canadians Relief at the Pumps
Garry Breitkreuz, MP
Yorkton - Melville
The federal government just announced a $12 billion surplus, yet Finance Minister Paul Martin and Prime Minister Jean Chretien refuse to reduce federal fuel taxes. At a time of sky-high fuel prices and sky-high fuel taxes, it would be appropriate to give Canadians a break by reducing the federal fuel tax. Unfortunately, our government continues to let taxpayers suffer and pay expensive gasoline prices.
On September 21, 2000, the Canadian Alliance put forward the following motion that was debated all day in the House of Commons:
That given the record increases in the price of gasoline and home and diesel fuel, severely hurting Canadian consumers, truck drivers and businesses, and given the recent promise by the Minister of Finance to reduce taxes, this House call upon the government to give relief on fuel taxes, including repealing the increase in gasoline excise tax introduced as a temporary deficit elimination measure in 1995 and implementing the 1998 recommendation of the Liberal Caucus committee on gasoline pricing in Canada to remove the double taxation of the GST.
Unfortunately, the Liberal government voted against this motion thereby denying Canadian taxpayers relief at the pumps. As a result, many people will have to decide whether to cut from their food or clothing budget to pay for the increased costs in fuel.
What we asked for was a 1.5 cent-a-litre reduction on the federal excise tax. This would repeal the 1.5 cent-a-litre increase the Liberals implemented in 1995 as part of their deficit reduction strategies. We also wanted to see another 1.5 cents-a-litre taken away to halt the double taxation effect that is occurring. At present the GST is charged on the provincial and federal excise tax which means the government is collecting a tax on a tax. Because the GST is collected on the retail price of fuel at the pumps, tax revenues increase along with the price of fuel.
Over $13 billion in gas taxes will be collected this year by the federal and provincial governments according to The Canadian Taxpayers Federation. That figure could also go higher because of the federal government's ability to collect more revenue as the fuel prices go higher.
Even more remarkable about the government voting against reducing the federal fuel tax is that they just announced a $12 billion surplus. Whenever there is a surplus the government has taken more money out of taxpayers' pockets than it needs to fund its programs.
Part of the frustration with the high level of fuel tax is the fact only a tiny portion goes towards repairing highways. Out of the $4.7 billion the federal government collected in fuel taxes in 1998-99, only 4.1% or approximately $194 million was given back to the provinces for road and highway maintenance.
The United States recently passed a bill that returns a minimum of 90.5% of the federal fuel tax collected in each State back to that State. In Canada, a group called The Coalition to Renew Canada's Infrastructure, are calling on the government to dedicate one cent per-litre of federal fuel tax or about $500 million annual to highway renewal. This is not a large amount when you consider that after the water fountains, canoe museums, hotels and the rest of the Shovelgate scandal, the Liberals still had $12 billion left over last year.
Our government is content to rack up huge surpluses by overtaxing Canadians. Will they use this money to buy our votes in the next election? Remember this is our money they are using. Also, don't forget in every area around the world where taxes were reduced, there was a significant economic stimulus. This proves that the people know better how to spend their money than government does.
That's what is happening in Ottawa. How long will we let it continue?
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