Dear John,

With consumers taking hit after hit lately, the thought of another tax hike seems ludicrous.

But that’s exactly what is happening today as the federal government raises its carbon tax by a further 25%.

No, unfortunately this is not an April Fools’ joke.

You might remember last year around this time, when the Fraser Institute released an analysis of the estimated effects of Justin Trudeau’s planned $170 per tonne carbon tax in Canada.

Despite the Environment Minister claiming that carbon tax hikes will have “almost zero” impact on the economy, our analysis found – unsurprisingly – that the higher carbon tax will have significant impacts on Canadians and the economy from coast to coast:

• Nearly 185,000 jobs lost nationwide;
• a massive 1.8% decline in GDP;
• higher deficits;
• higher energy costs; and critically,
• these increases fall disproportionately on lower-income households.

Our analysis helped shift the debate in the country. It even triggered a response from the Environment Minister himself, who didn’t dispute its findings.

Fast forward to 2022: Canada’s inflation rate hit 5.7% in February, driving the price of groceries and other necessities higher than ever.

Here in BC, gas prices are now above $2 in some areas!

Despite this, and despite many prominent voices – including several Premiers – calling on the federal government to halt the carbon tax increase to give consumers a break, they are moving ahead with the hike anyway.

John, with governments driving up debt and taxes, the work we do here at the Fraser Institute is more important than ever.

Without our team’s hard work, many Canadians would still be in the dark about what the effects of this planned $170 per tonne carbon tax might be.

Will you help us continue the work we do?

We of course do not accept government subsidies for our research. We rely on supporters like you to continue getting Canadians the information they need to hold their governments accountable!

If you can, please consider supporting our work with a donation today. (Each donation entitles you to a generous tax credit!)

Thank you for your support.

Sincerely,

Niels Veldhuis
President
The Fraser Institute