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January 4, 2017

Tax on tax: NDP carbon tax will send tens of millions more to Ottawa: Wildrose

EDMONTON, AB (January 4, 2017): The NDP carbon tax will send tens of millions more to Ottawa through GST revenues with no added benefit to Alberta, and Premier Rachel Notley needs to come clean about exactly how much money will exit our province year-over-year, the Wildrose Official Opposition said today.

The GST adds 5 per cent to the cost of many goods and services, including fuel and natural gas. With the carbon tax increasing gasoline and diesel prices by 4.5 cents and 5.4 cents, respectively, millions more will be taken out of the pockets of Albertans and sent directly to Ottawa with no strings attached. The carbon tax will also cost Albertans an extra dollar per gigajoule on their natural gas bills, which will send an extra 5 cents per gigajoule straight to Ottawa via the GST.

Wildrose Leader Brian Jean said this is inexcusable at a time when Alberta families are struggling to make ends meet. “Instead of taxing Albertans on the taxes they already pay, Premier Notley should be looking for creative ways to help struggling families in our province,” Jean said. “Premier Notley has an obligation to be honest with Albertans about exactly how much more will be going to Ottawa because of this carbon tax.”

Both Notley and Prime Minister Justin Trudeau promised that all the the money collected from the carbon tax would stay in Alberta.

Wildrose Shadow Finance Minister Derek Fildebrandt said that Albertans have already been shortchanged by $20 billion annually from Ottawa in transfer payments and services, and that this tax on tax won’t sit well with them.

“Sending all this additional tax on tax money to Ottawa with no strings attached is the last thing families want, especially at a time when our economy is struggling and over 100,000 Albertans have lost their jobs,” Fildebrandt said. “Premier Notley has an opportunity here to show she’s on the side of working families by being upfront about the amount of this tax on tax and telling us what she’s going to do about it. It’s just the right thing to do.”