Poilievre, Guilbeault claim victory after federal budget watchdog's updated carbon tax report
Both the Liberals and Conservatives are claiming a win after the parliamentary budget officer (PBO) released an updated report on the economic impacts of the federal carbon tax on Canadian households.
The new report, published Thursday, came to similar conclusions as past analysis, despite an error in findings released in 2022 and 2023, which inadvertently included the industrial carbon pricing system.
The average household where the federal carbon tax applies – which is most provinces except Quebec and British Columbia – will receive more money from the Canada Carbon Rebate than what they pay in the fuel levy and related GST, according to the PBO’s latest.
“Broadly speaking, our updated estimates (fiscal impact only) show larger net gains (lower net costs) for average households across income quintiles in backstop provinces compared to our March 2023 distributional analysis,” the PBO report says.
But when economic impacts are factored in, like loss of employment due to the fuel charge, the average household will get back less money than what they pay towards the carbon tax.
“The updated estimates continue to show that the average household across most income quintiles will face a net cost when both fiscal and economic impacts of the federal fuel charge are considered,” the PBO report states.
Like previous reports, the updated PBO analysis does not account for the economic impacts of climate change.
The analysis on the federal fuel charge has been used as a political football on the merits of consumer carbon pricing since its original release.
Conservative Leader Pierre Poilievre, who says he will “axe the tax” if elected as prime minister, said Thursday that the updated report “confirmed everything I've been saying about this horrible tax, this rip off.”
“That's why we need a carbon tax election where Canadians can choose between a 61 cents a litre carbon tax or axing the carbon tax altogether,” Poilievre told reporters on Thursday.
Environment and Climate Change Minister Steven Guilbeault, meanwhile, called the report “an important correction.”
“Now's the time to clear the air of Pierre Poilievre’s big lie to Canadians,” Guilbeault said Thursday. “He's been misleading Canadians. The PBO is very clear. More Canadians get money back from the Canada Carbon Rebate than what they paid.”
Most Canadians, except in Quebec and British Columbia, pay the federal carbon tax on consumer fuels and receive money back through the Canada Carbon Rebate on a quarterly basis.
This past April, the carbon price increased from $65 per tonne to $80 per tonne, costing drivers an extra 3.3 cents per litre at the pump. The carbon tax is scheduled to increase another $15 each year until it reaches $170 a tonne in 2030, according to federal government targets.
Aside from Poilievre, the carbon price has also received significant pushback from most premiers, including Liberal Newfoundland and Labrador Premier Andrew Furey. NDP leader Jagmeet Singh has even signalled he could be distancing himself from the policy, saying his party is working on a climate plan that wouldn’t put the burden on the backs of workers.
Despite its unpopularity, Guilbeault said in an interview with CTV Power Play in September that the federal government has “no intention” of pausing the next planned increase to the carbon tax, but admitted it might not be necessary beyond 2030 if emissions go down.
“If we come to the conclusion that we don't need to keep increasing it and that emissions will continue to go down because of all the other things we're doing, then there's no reason to continue increasing it,” he said.
IN DEPTH
Jagmeet Singh pulls NDP out of deal with Trudeau Liberals, takes aim at Poilievre Conservatives
NDP Leader Jagmeet Singh has pulled his party out of the supply-and-confidence agreement that had been helping keep Prime Minister Justin Trudeau's minority Liberals in power.
'Not the result we wanted': Trudeau responds after surprise Conservative byelection win in Liberal stronghold
Conservative candidate Don Stewart winning the closely-watched Toronto-St. Paul's federal byelection, and delivering a stunning upset to Justin Trudeau's candidate Leslie Church in the long-time Liberal riding, has sent political shockwaves through both parties.
'We will go with the majority': Liberals slammed by opposition over proposal to delay next election
The federal Liberal government learned Friday it might have to retreat on a proposal within its electoral reform legislation to delay the next vote by one week, after all opposition parties came out to say they can't support it.
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
Opinion
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn’t be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
W5 investigation How did thieves steal your car? Maybe with a device they ordered online
Digital devices that a Toronto-area police department warns are used in the most common method of stealing cars are for sale online for anyone to buy, a W5 investigation has found.
Trump's appointees have criticized Trudeau, warned of border issues with Canada
Donald Trump's second administration is filling up with some of his most loyal supporters and many of the people landing top jobs have been critical of Prime Minister Justin Trudeau and security at Canada's border.
Elon Musk and Vivek Ramaswamy will lead new 'Department of Government Efficiency' in Trump administration
President-elect Donald Trump announced Tuesday that Elon Musk and Vivek Ramaswamy will lead a new 'Department of Government Efficiency' in his second administration.
Alleged serial killer previously pled guilty to 2018 attack on Waterloo, Ont. bus
The woman accused of killing three people in three days in three Ontario cities also previously admitted to attacking strangers on buses in the Region of Waterloo.
Former B.C. premier John Horgan dies at 65
Former B.C. premier John Horgan, a popular leader renowned for his affable personality and dedicated public service, has died
Here's why thieves may be stealing butter in Canada
The case of the missing butter remains a mystery, but some have ideas on what's behind the unusual crimes.
B.C. teen with Canada's first human case of avian flu in critical condition, Dr. Bonnie Henry says
The teenager who is sick with the first-ever human case of avian influenza acquired in Canada is in hospital in critical condition, provincial health officer Dr. Bonnie Henry said Tuesday.
Chrystia Freeland says carbon rebate for small businesses will be tax-free
Deputy Prime Minister and Finance Minister Chrystia Freeland says the Canada carbon rebate for small businesses will be tax-free.
Air Canada to add new routes to U.S., Europe and North Africa in summer 2025
Getting to destinations in the U.S., Europe and North Africa is about to get easier, as Air Canada announced it will be increasing flights to a number of new destinations this summer.
Local Spotlight
'I get in this workshop and everything disappears': N.B. man creates whimsical birdhouses in spare time
Four years ago, Phill Hebb started up 'Phil’s Unique Birdhouses' and since then, they’ve made their way all across Canada and into the United States.
N.B. fashion designer honours late mother with unique, award-winning dress
A New Brunswick fashion designer recently won the top prize at a national event for a dress she made using an unconventional material.
Dr. Ronald Weiss, Ottawa's 'Wayne Gretzky' of vasectomies, dies
Dr. Ronald Weiss, who performed nearly 60,000 vasectomies on Ottawa men, establishing him as the "Wayne Gretzky" of the procedure, has died.
Should Toronto tear up its bike lanes to improve traffic flow? Critics say it's not so simple
A congestion crisis, a traffic nightmare, or unrelenting gridlock -- whatever you call it, most agree that Toronto has a congestion problem. To alleviate some of the gridlock, the Ontario government has announced it plans to remove bike lanes from three major roadways.
Local campaign hopes to raise $100K, help children in need during holidays
For the second year in a row, the ‘Gift-a-Family’ campaign is hoping to make the holidays happier for children and families in need throughout Barrie.
The people behind the pictures: Meet the prolific shutterbugs snapping CTV Skywatch weather photos
Some of the most prolific photographers behind CTV Skywatch Pics of the Day use the medium for fun, therapy, and connection.
'There was no stopping this baby from coming': Woman gives birth while on board N.L. ferry
A young family from Codroy Valley, N.L., is happy to be on land and resting with their newborn daughter, Miley, after an overwhelming, yet exciting experience at sea.
B.C. man discovers 115 stuffed animals hidden behind wall, begins donating them to people around world
As Connor Nijsse prepared to remove some old drywall during his garage renovation, he feared the worst.
'We put love into it': Group of N.S. women gather to make quilts for those in need
A group of women in Chester, N.S., has been busy on the weekends making quilts – not for themselves, but for those in need.