Denley: When we all drive electric, government loses big time
Ottawa Citizen

By Randall Denley, Ottawa Citizen, August 30, 2017

To listen to them talk, our federal and Ontario governments can’t wait for the planet-saving electric car future to get here. They are so keen that they are subsidizing electric cars and even building a network of charging stations for them.

What we don’t hear about is the huge effect on federal and provincial revenues if the government’s rhetoric becomes reality and people turn to electric cars in large numbers. A big reduction in gas tax would seriously affect Canada’s ability to pay for roads but it would also undermine a top source of transit dollars.

Federal and provincial governments will collect $23.5 billion in gasoline and diesel taxes this year, according to the Canadian Taxpayers Federation. In addition, they will take in nearly $1.8 billion in sales taxes.

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