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LETTER TO THE EDITOR: What is a compounding tax?
6 minute read 10:42 AM CDTSometimes while watching and reading the news and listening to Pierre Poilievre and his gang of Conservative MPs trying to gain support for their “Axe the Tax” campaign I can’t help getting worked up a bit at the amount of false information they’re trying to spread. I’ll give you a few examples from the April 11 issue of The Carillon column by Provencher MP Ted Falk called On Parliament Hill. In the article the writer says the carbon tax is a tax on everything, gas, groceries, home heating etc. This is a misleading statement. The statement tells me that when I pay for my groceries at the checkout, I’ll have to pay a carbon tax. That’s not true. All input costs are definitely built into the selling price but there never is a direct carbon levy on the product itself. It is not like GST which is applied to single serving foods such as soft drinks or on restaurant meals or take-out meals or paper products. The carbon levy is never a percentage tax but instead a flat rate levy per volume, adjusted once a year, on carbon emitting fuel used in either, heating, production, storage, distribution, or transportation of goods only. Farm fuels used in planting and for crop maintenance, and harvesting are exempt from the levy.
The report writer also compares the carbon levy to GST. He says the carbon levy is a compounding tax, sometimes called stacked tax, not like GST which he says is only an end user tax. False and misleading again. A compound tax is a tax calculated on the untaxed item plus any tax already added. A compound tax is a tax on tax. This tax is added on top of the initial cost plus the primary taxes rather than calculated on the untaxed amount. A good example is GST on gasoline that the Progressive Conservatives brought in. GST is calculated after provincial taxes and the carbon levy have been added to the price. Check at your next fill up. The carbon levy is charged each time more fuel is purchased, but on that fuel purchase only. The Conservatives would have you believe that the tax compounds, tax on tax each time the trucker fuels up or whoever purchases fuel to heat a building. By stating that the carbon levy is a compound tax they would have you believe that the levy grows much as it does in the investment field where we have the “rule of 72”, which means that the investment amount will double each time the investment term has been reached times the rate of interest equals 72. The extra 28 percent earned is the amount earned by the compounding of the interest. The carbon levy increased about 3.3 cents per liter of gasoline or 23 percent on April 1 and will increase at the same rate every year until 2030 but never again at 23 percent per year. It’ll never compound on itself. The 3.3 cents is a small amount when comparing it to the huge price jumps at the pump of gasoline and diesel fuel throughout the year.
The Conservatives would have you believe the cost of food will greatly decrease if the farmers, who grow the food were exempt from paying the levy at all. That’s not the story I read in the farm news papers such as the Manitoba Co-operator. The farmers are not hoping to have the levy removed so they can pass the amount up the food chain to bring down food costs. They are looking forward to having their costs lowered for greater profit.
The Liberals claim eight out of 10 families get back more in direct carbon levy rebates than they initially paid in direct costs. The PBO Yves Giroux says if one looks at the fiscal impact that the levy has and adds the GST added to it and compares that to the rebate, most families are better off. However very little is free and so it is also with our effort to combat climate change. There aren’t only direct costs but indirect costs also. The PBO has calculated the effect the carbon levy has on the economy. He’s taken into consideration the effects on transportation, unemployment and the oil industry and oil stockholder earnings, which have taken a hit. The purpose of the carbon levy was to bring down carbon emissions of which the oil industry is a major contributor. A downturn in their profits only show that the levy is working. The PBO Mr. Giroux has taken the downturn in the economy caused by the carbon levy and divided it up among individuals and families and says these are our indirect costs. Although these are paper numbers only and not in real cash the Conservatives have jumped on this and now claim we don’t get back as much in rebates as our direct costs are.
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COLUMN: Report from the Legislature – Disappointed by NDP school funding
2 minute read Yesterday at 5:08 PM CDTIn addition to being your MLA, I am pleased to announce my new role as the President of the Manitoba section for the Americas region of the Assemblée parlementaire de la Francophonie (APF). The APF is an international organization devoted to promoting the French language, strengthening solidarity among Francophone communities, and promoting democracy and human rights in the Francophone world. I am honoured to be a part of an organization that is doing outstanding work to keep the French language and Francophone communities alive and thriving. Not to mention, this position will only help strengthen my existing role as the PC Critic for Francophone Affairs.
At the beginning of the month, the NDP government released its very first budget. In Budget 2024, the NDP have noticeably chosen to cut the Arts, Culture and Sport in Community (ACSC) and Building Sustainable Communities (BSC) grant programs, both of which helped fund several community development projects and programs in Lorette, Ste. Anne, and across the Dawson Trail constituency over the years. With that said, I urge the NDP government to follow through on the $5 million that Premier Kinew promised to the community of Lorette for renovations to their arena.
Budget 2024 also states that the NDP will construct two new schools in Winnipeg. I am incredibly disappointed that the NDP government has decided to completely cancel the development of a new school and daycare facility for the community of Ste. Anne. Ste. Anne is a community with a growing population, whose need for child-care facilities and school spaces continues to rise. Currently, their education facility is overcrowded and contains multiple schools, serving students from kindergarten to grade 12. It is of utmost importance that Ste. Anne receives these facilities so they can continue to accommodate their growing population and provide their community members with the best education environment possible.
As your MLA, I will continue to advocate for the constituents of Dawson Trail and make sure that your concerns and voices are being heard.
Taste of Steinbach returns after successful year
3 minute read Preview Yesterday at 2:33 PM CDTSte Anne’s Larocque strikes gold with Canada again
1 minute read Preview Yesterday at 2:02 PM CDTTaking impaired drivers off the road
1 minute read Yesterday at 11:01 AM CDTSteinbach RCMP pulled three people off the road last weekend, handing out licence suspensions and impounding vehicles.
Police say they issued an immediate roadside prohibition to a 23-year-old male from Mitchell and a 34-year-old male from the RM of La Broquerie. Both blew a “warn” in roadside breath samples at separate traffic stops. They each were given a 72-hour licence suspension and had their vehicle impounded for three days.
A 26-year-old male from Winnipeg registered a “fail” on the device and was given an immediate roadside prohibition with a 90-day suspension and a vehicle impoundment of 30 days.
The roadside prohibition is used if the driver has never been charged or convicted for a previous impaired driving offence and currently has a valid driver’s licence.
COLUMN: Eye on the Arts – Help us provide programming
4 minute read Yesterday at 8:43 AM CDTAfter 45 years, the Steinbach Arts Council has grown to offer nearly 100 subsidized concerts and programs each year, bursaries for those in need, and free youth programming in our community.
We invite you to join us on Friday, May 3, for the Steinbach Arts Council’s annual fundraising gala, because together, we keep can keep arts and culture recreation accessible for everyone.
Visit steinbacharts.ca or call 204-346-1077 to reserve your ticket today.
Thank you to our event sponsors and donors Derksen Printers, Linda Penner, Manitoba Liquor Marts, One Insurance, Country Meat & Deli, Sunshine Greenhouse, Anne Barkman & David Banman, Chez Koop, Old Church Bakery, Let’s Celebrate Rentals, Niverville Credit Union, Earls Meat Market, Leonard Klassen Financial, Garnet & Trish Enns, Print Studio One, Golden West Radio, Steinbach’s Flooring Canada, and GNM Fine Jewellers.
Winkler has Steinbach on the ropes in MJHL finals
2 minute read Preview Tuesday, Apr. 23, 2024MHV executive director resigns
3 minute read Preview Tuesday, Apr. 23, 2024Provencher MP hopes for election after ‘very socialist budget’
7 minute read Preview Tuesday, Apr. 23, 2024Dodgeball players earn trip to nationals in Niverville
1 minute read Preview Tuesday, Apr. 23, 2024Hitting all the right notes
1 minute read Preview Tuesday, Apr. 23, 2024RM of Ste Anne raises taxes, hopes for daycare, land for businesses
4 minute read Preview Tuesday, Apr. 23, 2024Cancellation of robot games leads to schools organizing themselves
5 minute read Preview Monday, Apr. 22, 2024History of Manitoba one food truck recipe at a time
7 minute read Preview Monday, Apr. 22, 2024LETTER TO THE EDITOR: Correction of mistakes
5 minute read Monday, Apr. 22, 2024Thank you to columnist Michael Zwaagstra (April 4, 2024) for providing a positive review of my new book Untangling Popular Anti-Israel Arguments: Critical Thinking about the Israel-Hamas War.
I wrote that little book because there is so much poor thinking about the terrible war between Israel and Gaza (led by Iran-backed Hamas), a war that is now (as I write this letter) threatening to expand directly with Iran.
Sadly, the need for my book was confirmed by a recent letter to The Carillon by Rick Loewen (“Columnist justifies infanticide,” April 11, 2024). Mr. Loewen makes three serious mistakes, which I wish to correct.
Mistake 1: Loewen says Hamas did not start the war with Israel.
‘It’s getting real now,’ — Event Centre manager excited for next steps
3 minute read Preview Monday, Apr. 22, 2024LOAD MORE