Canadian PM Says Carbon Tax Proposal Would Slow Economic Growth

August 15, 2008 7:27 a.m. EST

Fredericton, New Brunswick (AHN) - Instead of taking a green shift, the Liberal Party's planned political platform for a proposed fall federal election has turned into a green shaft that will slow down the growth of Canada's economy, Prime Minister Stephen Harper said Thursday at the end of his two-day northern political swing.

Harper said a carbon levy proposed by the Liberals is a tax increase pretending to be an environmental policy.

"It will drive up the price of everything - transportation, groceries, electricity, heating, even propane for our barbecues," Harper said.

The prime minister said if the Liberals win in the fall election, the carbon tax will drive up the cost of living for fixed-income elderly and low-income families.

The Liberal Party countered that carbon tax costs will be offset by income- and business-tax breaks to be introduced. In addition, the opposition also dangled promises of tax benefits for the poor, elderly and rural residents.

In contrast, Harper said the Conservative Party will reduce taxes, fight crime, pay off the country's debt, strengthen the military and fight for Canada's sovereignty over the Arctic.

In Newfoundland, Harper pointed out, "In the past few months, and particularly over the summer, we have seen increasing signs that this Parliament is really not working very well any more. It is becoming increasingly dysfunctional." To solve this problem, the prime minister threatened to push through with national elections by fall if the Liberal Party continues to use the Commons session to investigate rather than to pass vital legislation.