Premier Doug Ford just promised to make the largest tax cut in Ontario’s history permanent.
And that leaves his rivals with a big question: Will they match it or let that tax snap back up?
Here’s what’s happening: Ford is finally committing to making his temporary 6.4 cent per litre gas tax cut permanent.
That’s huge news for Ontario taxpayers and welcome relief for struggling families.
“You deserve to keep more of what you earn every single day,” Ford said in announcing his plans on the campaign trail. “A re-elected PC government will make the gas tax cut permanent, saving drivers and families hundreds more.”
Since the Ford government introduced its temporary gas tax cut in July 2022, the typical Ontario family has saved more than $1,000 at the pumps, while taxpayers have saved more than $2.5 billion in total.
Polls for the better part of three years have shown that 50 per cent of Canadians are less than $200 away from not being able to pay their bills. In that context, the gas tax cut has provided meaningful relief that has quite literally helped families make ends meet.
While Ontario taxpayers have enjoyed significant savings from Ford’s gas tax cut, it’s always been on the verge of expiry. The current cut expires on June 30.
While Ford has weighed in on his plans for the future of the gas tax cut, Ontario’s other party leaders have not.
Ontarians deserve answers. What would Liberal Leader Bonnie Crombie do about the gas tax cut if she were elected premier? Or NDP Leader Marit Stiles?
When Ford first announced the 6.4 cent per litre gas tax cut, his government introduced it for a period of six months.
The gas tax cut has since been extended four times. Each extension ran for less than a year.
The Ford government’s gas tax cut saves a family filling up a sedan and a minivan once a week about $35 a month in gas taxes. That works out to $420 a year of permanent savings.
With the federal government hiking payroll taxes, carbon taxes, and alcohol taxes, it’s crucial for provincial governments to step up and provide relief. Ford is committing to do just that.
But when it comes to the gas tax, Ford’s opponents are being eerily silent on the issue.
Would they let Ford’s gas tax cut expire?
If so, Ontarians deserve to know. Families need to plan for a $35 a month increase in prices at the pump if Ford’s rivals don’t plan to match his commitment.
When Ford introduced the gas tax cut just before the 2022 election campaign, former NDP leader Andrea Horwath called it a "gimmick."
Horwath was wrong: gimmicks don’t save families more than $1,000 at the pumps.
To their credit, Ford’s rivals have promised some affordability measures of their own. In particular, Crombie has put income tax cuts on the table, and is pledging to take the provincial sales tax off home heating and utility bills.
Stiles has been talking about payments to help with grocery bills.
Still, Ontarians aren’t prepared to see Ford’s gas tax cut disappear because it’s worth about $1 billion in savings every year.
With less than two weeks left in Ontario’s election campaign, it’s time for Ford’s rivals to weigh in on the gas tax.
The bottom line is taxpayers can’t afford higher prices at the pumps. It’s time for Crombie and Stiles to be clear. Either they want to keep prices at the pumps down, or they’re prepared to let gas taxes rise just before families set out on road trips this summer.
Jay Goldberg is the Ontario Director of the Canadian Taxpayers Federation