Brad Trost, MP Saskatoon-Humboldt
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Revenue Neutral Tax Possible?

June 27th, 2008

Brian Mulroney promised that the GST would be revenue neutral when he brought it in to replace the manufacturers sales tax. Jean Chrétien promised he would abolish the GST when he became Prime Minister. Lorne Calvert raised the PST right after he won re-election as premier.

I bring up these unpleasant tax swindles because of the new carbon tax that Stephane Dion is proposing. Dion is promising a revenue neutral tax like Mulroney, he is promising tax cuts just like Chrétien, and is being coy on the sales tax just like Calvert. I know that the chattering classes in Toronto and Montreal are all enthralled with the idea of a carbon tax, but I really can’t remember the last time that a tax hike was good for my personal finances or the finances of anyone that I know.

So let me state this directly. A carbon tax is a really, really bad idea. It is a massive revenue grab that directly targets rural and natural resource producing regions. It is a tax grab that will hit Saskatchewan harder than any other province in the country. It is a tax that specifically targets: heating, transportation and agriculture. It is a tax that hits the poor and people on fixed incomes harder than other segments of society.

In my next couple of columns, I will lay out specifically what a carbon tax would mean to you. I will lay out what it would mean for truckers, farmers and others who will be hard hit by this revenue grab. People should be very suspicious of politicians who tell them that a tax hike will be good for them. I can’t think of a good tax hike in history, and I’m sceptical if there will ever be one.