In Thursday August 25, 2005 Calgary Sun I read a good article by John Williamson. He's the federal director of the Canadian Taxpayers Federation. I couldn't find the article on the Sun's website so I'll write it down word for word; enjoy.....
Titled: "PM refusal giving gas pains"
Paul Martin dug in his heels this week and ruled out lowering gasoline taxes. Canadians will continue to pay through the nose for gas thanks to high oil prices and fuel taxes, which account for one third of the pump price.
Prices now average more than one dollar per litre -- meaning 33 cents is tax -- and family budgets are being squeezed. Yet according to the Prime Minister the price hike does not mean more tax revenue for Ottawa because with higher prices consumption falls.
"The federal government does not make money from increasing gas prices," he told reporters Monday with a straight face. This is not true. For every 10 cent/litre jump in pump prices an additional $175-million in GST revenue flows into Ottawa's coffers. Gas prices are up approximately 20 cents over 2004 levels.
As for the suggestion that gas consumption falls with price spikes, Mr. Martin knows better.
According to Statistics Canada, gasoline sales increase at an average rate of just over 1% a year.
In 1985 retail slaes were 32-billion litres and last year sales exceeded 40-billion litres. Higher gas prices mean consumers have less savings or disposable income to purchase other goods and services.
Mr. Martin's other line of defence against reducing taxes is that the revenue is going to cash-strapped cities and lowering taxes will endanger this funding.
This is absurd. Over the next five years Ottawa will provide $5 billion to cities and communities.
According to the 2005 budget, the funding transfer is $600 million this year and will increase to $2 billion -- equivalent to a third of total gas tax revenues -- in 2009.
Budget estimates pegged total fuel tax revenues from the 10 cent/litre excise tax at $4.68 billion this year.
GST revenues will add another $1.35-billion. Ottawa's total take is projected to be $6-billion this year. Once the gas transfer is deducted Ottawa will be left with $5.4-billion.
Even after Ottawa transfers a generous $2-billion to cities in 2009 more than $4 billion will remain in the governments kitty. All told, Ottawa will relocate $5 billion to municipalities over the next five year and collect an eye popping $30-billion from motorists.
The difference between gas revenues and the gas tax transfer is a staggering $25 billion -- a cushion so large it leaves taxpayers to wonder if the Prime Minister is mocking them when he says he cannot reduce gas taxes.
But then, the federal government seems generally unconcerned about the welfare of the average taxpayer. How can Liberal MP's, for example, defend charging motorists the 1.5 cent a litre "deficit elimination" gas tax when the deficit vanished seven lomg years ago? Why do they continue to charge taxpayers for something -- i.e. the deficit -- that does not exist?
Why is GST charged on the total pump price, gas tax included? This tax-on-tax scam, on average, adds another penny-and-a-half to pump prices. (In New Brunswick, Nova Scotia, and Newfoundland & Labrador the 15% HST adds a stunning 3.8 cents per litre!)
Canadians cannot control the world price of oil, but there is plenty that can be done to reduce fuel taxes. A 3 cent/litre reduction will return $1.2-billion to motorists and a 5 cent/litre cut will pump $2-billion back to taxpayers. Even with such a modest gas tax reduction the federal government will still collect billions of dollars in fuel tax revenues eaxch year.
Mr. Martin, you have no more excuses.
Well there you have it, I would think a change in federal government could be coming up. But I'm not holding my breath. I find it suprising that the maritimes continue to support the Liberals. It reminds me of the Simpsons----' you people are nothing but a group of fickle mush heads... "he's right, GIVE US HELL QUIMBY" ah, ah ah, I love GRIMBY!'
What a comedy of errors.
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3 comments:
Hmmmm...let's see, our Provincial Tory government won't give us a break on out 3.8 cent tax rate for the HST, ( and they have no transfer payments, our gas taxes supposedly go to our swiss cheese like roads...) And you want us to blame the Liberals for a 1.5 cent grab for GST...Lets take a closer look at the Canadian Taxpayers Federation, Hey says in their manifesto they also want private retirement pensions Just like ole George W.
" In addition to retiring debt, governments need also turn their attention to unfunded liabilities, particularly as they pertain to health care and social security. Under-capitalization and the need for pre-funding is a subject in the CTF’s health care position paper and the central focus of a paper released in 2004 to reform the Canada Pension Plan "
Also they want all public sector jobs privatized, including health care, and they want all of the Native Reservations sold and privatized. Because Air Canada and Our own Nova Scotia Power Privatizations have gone Sooo well. I think that mabye the CTF is a little Biased on the side of Free Market Capitolist industry. How are the oil companies doing anyway...
"Gas prices have been sky-high this year and are likely going higher. And though that's meant big profits for Canada's biggest oil companies, most Canadians have been reaping rewards too.
Shell Canada earned record profits in the first quarter, with earnings hitting $368 million. That's up 73 per cent from a year ago. Another petroleum giant, Imperial Oil, posted quarterly profits of more than $509 million.
"It was a record year on several fronts, including financial performance," says the CEO of Imperial Oil, Tim Hearn.
...But it's not just the fat cats in corporate boardrooms who have benefited. Millions of Canadian investors have benefited too, with those who chose to hold oil and gas shares in their portfolios enjoying great returns on their investments" Oh how nice cause lots of people I know have stock in oil companies.
That was from CTV a year ago (2004)when the average price at the pump was 69 cents a litre, it's now 101.9 cents a litre, 30% higher, so expect 30% higher profits.
No I have lots of contempt to go around for theses prices,the Oil Companies, Citizens in Hummers, War in Iraq, Provincial and Federal governments. and at a measly 1.5 cents of the 110.9$ the Federal GST, although a pain, is not the central focus of my gas outrage.
The Canadian taxpayers federation are suppose to be speaking on behalf of all Canadian taxpayers. They want lower taxes. So do I. So when they show Canadians unnecessary taxation I believe it should be stopped, so the average joe gets more mooney in his pocket.
The article was showing that our federal government is lieing to us. Well, It's the Liberal's so they just can't do math.. I guess.
I understand your hatred for the oil companies. But what are you gonna do? It's a business and those assholes were lucky enough to be in control.
As Canadians we should at least be in control of our own tax money and how much is necessary. The Federal Government is on track to post a surplus 4 times what was projected. Surely there has to be some tax cuts. Not measley ones neither.
The Canadian Taxpayers association represent Buisness, Not the average Canadian. Their rant seems to think that it's a bad thing for governments to have money, and not use it for tax cuts. The government isn't fair to "Taxpaying Canadians"?
I believe Taxpayers need:
- Health care
- Education
- Housing
- Employment Insurance
- Police (RCMP)
etc.
Geez what kind of taxpayer doesn't need these things...Oh yeah corporate ones that have no health needs, children, dwellings, or unemployment issues!
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