On his first day as Canada's prime minister in 2025, Mark Carney eliminated the consumer carbon tax. And now, on his first day after winning a majority government, Carney has decided to suspend the federal excise tax on gasoline. This probably isn’t what Carney, the most accomplished economist to ever wield political power in Canada, had in mind when he imagined becoming prime minister. 

There are, after all, more economically efficient ways to help Canadians meet the cost of living challenge being created by Donald Trump’s catastrophic attack on Iran and the soaring oil prices that have followed. As University of Calgary economist Blake Shaffer noted on social media, Carney could have used the $2.4 billion allocated to the gas tax pause on an increase in the Canada Child Benefit and GST credits. That would simultaneously help those most in need and avoid dampening the price signal being sent by oil markets — one that is telling consumers and businesses to electrify as quickly as possible. 

But Carney is in the business of politics now, and business is booming. And while he’s clearly traded some of his ideological credibility for political currency, it’s nothing compared to the way his opponents have debased themselves on this issue. Conservative Party of Canada leader Pierre Poilievre has been straight-up lying about federal policy here, claiming that “high Liberal taxes” add anywhere from 25 to 28 cents per litre.........

© National Observer