By Troy Gillard

Carbon and booze tax, MP pay increases

Joke is on taxpayers this April Fools’ Day: CTF

Apr 1, 2021 | 9:43 AM

The Canadian Taxpayers Federation says it’s no laughing matter this April Fools’ Day as the federal government as it hikes its carbon tax, alcohol taxes and salaries for Members of Parliament.

“Today the joke is on taxpayers and it isn’t funny as our MPs pocket a pay raise while taking more money out of our wallets through a higher carbon tax and booze taxes,” said Franco Terrazzano, the CTF’s Alberta Director.

The federal carbon tax increases to $40/tonne today, which the federation says will cost a family about $7 every time they fill up their minivan with gasoline.

First passed in the 2017 federal budget, the alcohol escalator tax automatically increases excise taxes on beer, wine and spirits every year by the rate of inflation on April 1. Taxes account for about half of the price of beer, the CTF notes, 65 per cent of the price of wine and more than three quarters of the price of spirits.

MPs are eligible for raises each year on April 1. This year the CTF estimates each MP will receive an extra 1.7 per cent, based on contract data published by the federal government.

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“With millions of Canadians struggling through the COVID-19 downturn, the least our MPs could do is cancel this cruel April Fools’ Day joke and end the tax and politician pay hikes,” said Terrazzano.