Why is inflation persistently high? Taxes.

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Why is everything so much more expensive now than it was 7 years ago when PM Trudeau came to office?

Simple – taxes, taxes, taxes.

Why is inflation so persistently high in Canada, stuck around the 7% mark? First, we measure differently than other countries (housing is a smaller component of the calculation, for example).

But most importantly – taxes. Canada is the only G7 country not to reduce tax on fuel (instead, we are raising it on April 1).

Taxes are, in fact, INTENDED to fuel inflation. They raise the cost of everything and so, in theory, reduce demand. Good for governments, but bad for consumers who need to heat their homes, use a vehicle for work or family, operate a farm or business, or buy groceries that are transported from somewhere else.

I questioned the Liberals about their high taxes, high inflation policies on November 24.

Transcript

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