Did you know that taxes make up a very significant portion of the price of gas? I was shocked when I learned this. Gas is a staple product and a necessity to a well-oiled economy. Yet, the government imposes heavy taxes on the very commodity which makes much of our economy work. Here is an infographic. This infographic uses data from across Canada, so the exact figures may vary from province to province.
As you can see, taxes make up a significant portion (35.1%) of the price of gas. And since millions of businesses and consumers use gas every day, the government rakes in millions of dollars in revenue simply by taxing this product. It would be accurate to say that the government not only taxes you at work, it also taxes you on your way to work and on your way home, too! (Unless you walk).
As you can see, taxes make up a significant portion (35.1%) of the price of gas. And since millions of businesses and consumers use gas every day, the government rakes in millions of dollars in revenue simply by taxing this product. It would be accurate to say that the government not only taxes you at work, it also taxes you on your way to work and on your way home, too! (Unless you walk).
That's why I find it particularly interesting when some politicians blame the price of gas on the "big oil companies." Yes, oil companies are big and, yes, they are rich. They have to be big and rich or else it would be impossible for them to produce this extremely useful and ubiquitous product. But is it right to blame "big oil companies" for increasing the price of gas when taxes make up 35% of the price?
Consider, for example, the following comments from Brian Masse, Member of Parliament for Windsor West, and member of the NDP. You can read Brian Masse's full comments on his own website by clicking here. Masse wants a government agency to report on the price of gas to keep the big oil companies honest. Masse says: "With gas prices soaring once again nothing protects Canadians from being gouged."
Those are pretty strong words. Mr. Masse seams to believe that Canadians are being "gouged." But who is doing the gouging?
Consider, for example, the following comments from Brian Masse, Member of Parliament for Windsor West, and member of the NDP. You can read Brian Masse's full comments on his own website by clicking here. Masse wants a government agency to report on the price of gas to keep the big oil companies honest. Masse says: "With gas prices soaring once again nothing protects Canadians from being gouged."
Those are pretty strong words. Mr. Masse seams to believe that Canadians are being "gouged." But who is doing the gouging?
Taxes already make up approximately 35% of the price of gas across the country. It seems to me that the government is the primary culprit.
Furthermore, Mr. Masse's comments seem to clash head-on with another NDP policy: the carbon tax. The NDP are, of course, huge supporters of the carbon tax. And nothing is going to increase the price of gas faster than the carbon tax. The federal carbon tax will add another 4.2 cents per litre to the price of gas in Ontario. That tax will increase every single year, and will be an additional 11 cents per litre in 2022.
Furthermore, Mr. Masse's comments seem to clash head-on with another NDP policy: the carbon tax. The NDP are, of course, huge supporters of the carbon tax. And nothing is going to increase the price of gas faster than the carbon tax. The federal carbon tax will add another 4.2 cents per litre to the price of gas in Ontario. That tax will increase every single year, and will be an additional 11 cents per litre in 2022.
The NDP position seems to be this: oil companies should not be allowed to raise the price of gas, but the government should be allowed to raise the price of gas through taxes. In other words, according to the NDP, when the oil companies gouge you, that's bad, but when the government gouges you, that's good.
I disagree. When I get gouged, I don't care who is doing the gouging. Gas taxes are already too high, and they don't need to be higher.
I disagree. When I get gouged, I don't care who is doing the gouging. Gas taxes are already too high, and they don't need to be higher.