National Post (National Edition)

Carbon tax ‘deeply unfair,’ say businesses

- Andy Blatchford

OTTAWA • An organizati­on of small-business owners that helped spearhead a public campaign against the Trudeau government’s taxchange proposals for private corporatio­ns is sharpening its criticism of the Liberals’ forthcomin­g carbon-tax program.

The carbon tax has generated intense political debate across the country and it’s destined to be a key campaign issue in October’s federal election.

The Canadian Federation of Independen­t Business released a poll Tuesday that says the majority of its members believe the carbon tax is “deeply unfair.”

Most of its members, the report also said, worry they will be unable to pass along the bulk of the extra carbontax costs to their customers, leaving smaller businesses in a position where they’ll have to subsidize household rebates under the program.

The s u r v e y, however, could be self-reinforcin­g. More than two-thirds of CFIB members polled didn’t support any kind of carbon pricing to fight climate change.

The online survey was completed by 3,527 CFIB members in the four provinces — Saskatchew­an, Manitoba, Ontario and New Brunswick — that will have to follow the Trudeau government’s carbon-pricing system as of April 1 because they don’t have their own regimes. The lobby group, made up of more than 110,000 small- and mediumsize­d businesses, represents just under 11 per cent of Canada’s small- and mediumsize­d businesses.

The organizati­on has found success in the past as a critic of government proposals. In late 2017, CFIB helped lead a vocal campaign against Finance Minister Bill Morneau’s package of taxreform proposals for private corporatio­ns. The campaign spent months criticizin­g his plan, warning it would hurt the very middle class the Trudeau government claimed it was trying to help.

Morneau defended the proposals by insisting they were designed to stop wealthy owners of private corporatio­ns from unfairly taking advantage of the tax system, but in the end, the uproar forced him to back away from some elements of his plan.

CFIB has strongly opposed the federal carbon-tax plan out of concern it will pile on too many costs for smaller companies.

The Liberal government believes carbon pricing, which has been in place for years in provinces like British Columbia, Quebec and Alberta, is one of the best ways to lower emissions. The Liberals argue pollution is already getting expensive for Canadians as costs from climate-change-related weather events have climbed to more than $1 billion a year. The federal plan also includes efforts to develop cleanfuel standards, create new energy-efficiency building codes and phase out electricit­y generation from coal.

 ?? SEAN KILPATRICK / THE CANADIAN PRESS FILES ?? “Our plan puts a price on what we don’t want — pollution,” Minister of Finance Bill Morneau tweeted Tuesday in defence of the carbon tax.
SEAN KILPATRICK / THE CANADIAN PRESS FILES “Our plan puts a price on what we don’t want — pollution,” Minister of Finance Bill Morneau tweeted Tuesday in defence of the carbon tax.

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