Lower Gas Taxes Now Mr. Harper
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Cut Gas and Diesel Taxes
To: Mr. James Flaherty, Minister of Finance; Mr. Stephen Harper, Prime Minister; Mr. Lawerence Cannon, Minister of Transport, Infrastructure and Communities
CC: Mr. Jack Layton, Mr.Gilles Duceppe :
Fuel taxes, on average, make up as much as 38\% of the pump price. The message for Ottawa is simple: Use it or lose it. For every litre of gasoline we buy, Ottawa collects 10 cents in gasoline tax plus GST, but it puts next to nothing back into pavement. It's Highway Robbery.
This year Ottawa will spend only $324 million or 7.2\% of its $4.5 billion in gasoline and diesel taxes, excluding GST, on highway and road renewal.
The federal fuel tax transfer plan misses the mark by not dedicating more money to roads. Ottawa should dedicate 50\% of federal fuel tax revenues to municipalities for roadway development using the CTFs Municipal Roadway Trust model.
The federal fuel tax increased over 560\% between 1985 and 1995, from 1.5 to 10 cents per litre. Ottawa increased the federal gasoline tax from 8.5 to 10 cents per litre in 1995 as a deficit reduction measure. The deficit is gone, but the tax remains. Why?
GST is charged on the full pump price, fuel taxes included. It's a tax on tax, and it has to end. Dedicate our fuel taxes to rebuilding Canada's aging roads and cut the excess taxes from the pump price. Lower fuel taxes will make pump prices more affordable.
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