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Letter: ‘Axe the Tax’? More like ‘axe the facts’, says economist

Sudbury economist Dr. David Robinson explains why the federal carbon price doesn’t lead to inflation and why it benefits most Canadians, and why he believes the federal Conservatives are lying to voters
typewriter pexels-cottonbro-3945337 (From Pexels by Cottonbro)

Scott Aitchison brought the “Axe the Facts” (Editor’s note: the letter-writer is criticizing the federal Conservatives “Axe the Tax” message) campaign to Sudbury last week. Aitchison is a member of parliament and hopes to be a member of the government.  

Aitchison is a 53-year-old ex-real-estate salesman with a nice smile. It got him elected as  mayor in Huntsville and he is now the MP for our neighbours in Parry Sound-Muskoka. 

It is hard to tell if Scott is smart enough to know that his party's anti-carbon fee and rebate  campaign is founded on lies. Does he know it will give thousands of dollars to the richest  Canadians and take money from the poor? Does he know it will not reduce inflation one bit? 

Ordinary Canadians do not pay the carbon fee. You only pay directly if your fee is $10,000 or  more. That means only fossil fuel suppliers pay.  

The suppliers tack the fees onto our bills. The government fixed this problem. It gives us the  money back. We can buy just as much with the tax as without it. 

In fact, every study seems to show it benefits 80 per cent of Canadians in cash terms. A previous auditor general of Canada pointed out that it will hurt some jobs in the fossil fuel sector, and hurt the rich a bit, but that is what it is supposed to do. It is supposed to shift us out of the  dead-end carbon industry. 

A big lie Aitchison is selling is that the Greenhouse Gas Pollution Pricing Act contributes noticeably to inflation. Only the three cents of the gas tax increase was a carbon fee, and you get that part back.

Seventeen cents was pure price hiking by the same oil and gas companies that made $38.3  billion in profit in 2022. That part you don't get back. That is inflation. The companies also got $18 billion in subsidies from the federal government last year. That is inflation. 

If Scott really cared about inflation, he would be talking about oil companies gouging Canadian consumers. 

The Canadian Carbon Fee is a charge for dumping pollution into our air and we should be  paying for the garbage we dump. But we magically get our money back! Painless pollution  pricing! 

Scott must know that the carbon fee and dividend is the best tool for fighting climate change. I  am an economist, and like hundreds of other Canadian economists, I would be happy to tell  him again — if he wanted to hear. Any other strategy his party comes up with will cost  Canadians more. Scott doesn't believe economists. He listens to "ordinary Canadians" like his  car mechanic and his real estate friends. 

Scot must know that real, honest, smart Conservatives support carbon fees because they are  market-based and efficient. They work. They are cheap to run. They don't hurt jobs or  consumers.

So here is a question: Is Scott an unprincipled conservative or just an ignorant one? Will our local Sudbury Conservatives choose a candidate with principles who understands economics  or someone like Aitchison? 

David Robinson
Greater Sudbury