Carney and Co are lowering gas/diesel taxes:
The move means that the cost of gas will drop by 10 cents on a litre of gasoline and four cents per litre of diesel starting on Monday and lasting until Labour Day. The fuel tax holiday, which Carney said would also see the four cent per litre excise tax removed on aviation fuel, is expected to cost an estimated $2.4 billion.
One of the aims is to improve the affordability hit we’re taking because of the US/Israel war with Iraq.
Does the tax holiday make sense to you? Could it be done better?
It’s regressive in some ways, and not in others. If you’re completely unemployed, you might not drive but generally speaking low wage workers have to do the most commuting, often living furthest from their job, in places with poor transit access if any. They often are forced to use the least efficient older vehicles as well. The biggest savings however will be in commercial transport which would have been passed on through rising costs for groceries and essential goods, which again will hurt those already struggling more than the wealthy. Sudden unpredictable price shocks are always absorbed by the poor the most.