PAYING AT THE PUMP: "Liberal MPs like David Anderson, Paul Martin’s former Environment Minister, have joined with the NDP

in advocating even higher gas prices in order to reduce gas consumption."

PAYING AT THE PUMP

Canadians are being hit hard in the wallet as gas prices continue to rise. Many factors affecting the price of gas cannot be controlled, including factors such as natural disasters like Hurricane Katrina, which destroyed significant amounts of oil refinery and distribution infrastructure in the Gulf of Mexico.

However, there are some factors that governments can influence in order to stabilize the rising cost of fuel. The Canadian Taxpayers’ Federation has calculated that 33 cents of every dollar paid for fuel goes to the government in the form of tax. Notably, the federal government imposes the GST on top of the regular fuel taxes, amounting to a “tax on the tax.” And there seems to be no movement on the part of the federal Liberals to reduce any of these taxes, including the tax on fuel to eliminate the now non-existent federal deficit.

Industry analysts estimate that every 1-cent increase in gas prices per litre translates into $32-million in extra revenue per year for the federal government. This means that skyrocketing gas prices have resulted in windfall tax revenues for the federal government. It’s little wonder some politicians are doing their best to convince Canadians of the “virtues” of high gas prices.

Environment Minister Stephane Dion has said that we simply “have to get used to changing our way of life.” And according to Natural Resources Minister John Efford, "People have got to become accustomed to the high cost of fuel." In the past, Liberal MPs like David Anderson, Paul Martin’s former Environment Minister, have joined with the NDP in advocating even higher gas prices in order to reduce gas consumption.

It is easy for some people to suggest that everyone else should simply drive less, especially when they have easy access to subsidized public transportation or, as in the case of cabinet ministers, virtually unlimited access to taxpayer-sponsored, chauffeur-driven vehicles But the thousands of taxi drivers, farmers, truckers and other Canadians who use fossil fuels to earn a living do not have that option.

The federal Liberal government should stop finding excuses to hit taxpayers’ pockets, and start giving Canadians some relief at the pump. A good start would be to dump the tax imposed to eliminate the non-existent deficit and stop charging GST on top of other taxes during price spikes, ending the infamous “tax on the tax.” An additional measure advocated by the Conservative Party is to not impose any taxes on that portion of these new market-driven increases to the cost of a litre of fuel.

Governments are right to implement strategies to conserve fuel and to institute policies that reduce pollution caused by the burning of fossil fuels. However, these policies should be implemented on a gradual basis while making other reasonable alternatives available. Shocking consumers and the economy by adding more taxes to skyrocketing fuel prices is not a reasonable alternative.

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