Tuesday, October 25, 2005

High Gas Prices Drive Inflation

According to Statistics Canada, the rise in gas prices has driven up inflation.

Sign the CTF's Gas Tax Petition demanding lower fuel taxes here.


Bruce Randall said...

The Lie-beral's can't even bring themselves to remove the 1.5 cent extra "until the deficit is gone" gas tax. The GST never should have been applied to fuel in the first place and we know how much of the gas tax actually goes back into roads. Too BAAAAD there's so many sheep, but the wolves are already in their midst. Lamb chops anyone?

Chad Moats said...

Yes, let's increase demand in a supply tight market that will fix it. The 5- 7 cent decrease in pump price will quickly get eaten up as demand increases from lower prices. Look at how much the price jumped over Labour Day and is only starting to return to normal. Instead of complaining about a few pennies here and there, maybe you should be using your influence to get people to consume less gas.

Chad Moats said...

or would your large corporate donors not approve ?
By the way how may days of work did Mr. MacLean miss last year ?
It's time he came clean.

Adam Taylor said...


You must be reading Ralph Goodale's speaking notes, written by the PMO.

You say "instead of complaining about a few pennies..."

Those pennies quickly turn to billions of dollars. Since the budget was initially balanced in 97/98, the 1.5 cent "deficit elimination" tax has pumped an additional $4.7-billion into federal coffers.

The GST tax-on-tax bite has brought in another $4.8-billion.

To reduce gas taxes by 5 cents a litre would give back $2-billion to taxpaying motorists. While this is chump change to some politicians, high gas prices are affecting hardworking Canadians.

If the federal government reduced gas taxes by 5 cents a litre, it would guarantee that gas was always 5 cents cheaper even when the price fluctuates. When it skyrocketed to $1.45 on the Labour Day weekend, the federal government could have made it $1.40. If it's $1.00 per litre, a 5 cent cut would make it $0.95 (and so on...)

Gas stations would pass on the savings to consumers. Where I live people line up to save a few fractions of a penny from the guy down the street. Imagine if they could save 5 whole pennies!!

As for the consumption vs. price debate, the 1970's price spike showed high prices do not reduce consumption. Consumption has chugged along at the same rate for 30+ years. People HAVE to get to work, drive their kids to peewee hockey and piano lessons, etc. They don't simply sell the car or double on their ten-speed because gas prices are too expensive.

They end up cutting their food budget, (eating mock chicken instead of the real thing!, postponing their vacation, etc.

We can all wish that cars ran on orange juice, but they don't. We do need renewable and other energy sources, but it's not a crime to need to afford to gas up the family station wagon. A little tax fairness would go a long way to ending Ottawa's Gas Tax Dishonesty.

Adam Taylor said...

And on corporate donations:

I don't think we have a single one, unless you consider my uncle's hardware store a corporation.

Do you really think big business would support a group that denounces corporate welfare?? We are the only guys slagging the practice of government picking winners and losers in industry and they are not likely to be sending too many cheques our way any time soon.

David MacLean said...

It's good to see you take your marching orders from the commonwealth. You are an obedient little soldier.

Chad Moats said...

Why will you not answer the question, David ?
What are you hiding ?
I'm sure your "members" want to know .

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