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?
Politically, yes. It was going to be the new “axe the tax”. Now the Conservatives are back to convincing you to vote for them, which isn’t really something they’re good at, at least under this leader.
As policy, no. Markets don’t really work if you try to fix prices, which is what’s happening if you change taxation to counteract any swings. When you consider federally funded highways are free to use, no gas tax actually amounts to a subsidy, as well, while we’re trying to move away from fossil fuels.
It’s a long, long list. Just focusing on affordability, something that actually helps the poor and struggling primarily, as opposed to anyone who drives a lot regardless of income. UBI is a perennial suggestion.
Alternately, just doing nothing would at least leave the federal budget in better shape.