Another Calgary Flames Connection, Al Coates was the former GM of the Flames, and was responsible for bringing Jarome Iginla over in an infamously unpopular trade which paid of huge. He Loves his legend
Gas tax bonanza should be ours; [Final Edition]
AL COATES. The Record. Kitchener, Ont.: Aug 27, 2005. pg. F.2
My daily -- and quite unpimped -- ride is a 13-year-old Acura Legend coupe, loaded to the sunroof with every automotive bell and whistle known to mankind. The CD player, of course, no longer works. The air conditioner conked out this summer.
Last year, a fender job cost me four grand. This year, in addition to the usual brake job and exhaust jobs, and in addition to the master-cylinder replacement, there is also a little repair awaiting my Mastercard on something called an electronic speed sensor.
Each and every year, I spend the equivalent of the annual gross domestic product of Burkina Faso to keep this little beauty on the road -- and I would not fault the guys down at Fairview Acura if they had my home number on speed dial.
I, being male, think my little Legend is a classic. I cannot bear to get rid of it. I tell my gracious and lovely spouse that I love things that are old. She, being female and therefore perceptive, catches the drift immediately and responds that I am a twit.
Somewhere between those two solitudes -- my love for an old car, her apparent love for an even older fool -- might lie the basis for compromise. Which probably means that, sooner rather than later, I shall have to admit defeat and buy a new car.
I thought of this the other day while providing my automotive sweetheart with some $1.10-a-litre, 91-octane nourishment at the local gas bar. Hmmm, 60 bucks and change to fill 'er up, I was pleased to observe. A new all-time high. That's gotta be good, right?
Well, yes, it is, especially if you are Paul Martin and Ralph Goodale, the guys who cook -- oops, I mean, balance -- the books up Ottawa way. Let's start with the small stuff, my little fillup:
Of the $60 in gasoline that went into my tank, about 38 per cent of it -- more than 20 smackers -- went directly into the hands of the provincial and federal governments. There are taxes upon taxes upon taxes in the gas-pricing business and it all starts with a 10- cent-per-litre federal excise tax. Then, there's a 14.7-cent-per- litre provincial tax on top of that. Then, there's a 1.5-cent-per- litre federal "deficit-elimination'' tax on top of that. (Hey, didn't we eliminate the deficit a few years ago?)
Then, on top of the basic gas price, and on top of all those taxes, comes the dreaded seven per cent GST? Have you noticed here that Ottawa is actually taxing taxes? Have you noticed also that as the basic gasoline price rises, Ottawa benefits handsomely through the GST escalation?
For the current fiscal year 2004-05, the Canadian Taxpayers Federation estimates the 10-cent excise tax alone will add nearly $4.5 billion to the Ottawa treasury. The GST on gasoline will add nearly $1.2 billion. Starting this year, Ottawa, in its benevolence, will return part of that windfall to the provinces through an escalating gas-tax transfer, but that concession is relative peanuts: Ottawa will collect a total of $36 billion in gas taxes over the next six years; it will give only $5 billion or so to the provinces.
Now, let's be honest about this gasoline business. Fact is, we are all either goofy or in denial. Giant 4x4 pickups to pick up some milk at the 7/11. Real-estate agents swarming around in Hummers. Soccer moms in Escalades. Maybe $1.50 a litre will put an end to it. Then again, maybe not -- it's still a free world out there, isn't it?
But something is bound to give. The major airlines -- reeling on the fumes of high-flying jet-fuel costs -- have already jacked up their fares with fuel surcharges. Just this week, Air Canada announced new surcharges on heavy luggage -- after Oct. 12, passengers will be permitted only two checked-in bags, each with a maximum weight of 23 kilograms. The current limit is 32 kilos. After Oct. 12, the penalty for luggage over 23 kilos will be $35 per bag for domestic flights and $60 for international.
This stuff isn't just a smoke-and-mirrors cash grab by Air Canada. In its fiscal second quarter this year, the airline's fuel costs jumped 42 per cent over the first quarter. In dollar terms, Air Canada spent $156 million more in Q2 than in Q1.
But even with crude at $67 US a barrel, this globe of ours continues to spin on its axis. Presumably, the sun will rise tomorrow, likely in the east.
I will still be driving my classic, costly automobile. My buddies will still be driving their 4x4s and Vettes and, even with gas at $1.10, they'll still haul their toys up to Southampton or Parry Sound every weekend to run their power boats around the lake.
Up in Ottawa, Martin and Goodale will strip to the buff, toss all our money into a giant bathtub and swim in it.
These guys are in political paradise. They'll take in $5.7 billion through the gas-tax grab this year and more than $36 billion over the next six years.
This year, in sum, they'll run a $9.5-billion budget surplus. Next year, barring something nasty and unforeseen, the surplus will top $11 billion.
That money, in case anyone has forgotten, is yours and mine -- and I, for one, would like to have some of it back. One day soon, I'll need a new car.
acoates@therecord.com
Credit: RECORD STAFF
