Canadian Supreme Court upholds carbon tax in 6-3 vote

News

Constitutional challenge could have caused a huge headache

At issue was whether the Federal Government had the power to force provinces to implement a carbon tax. In a 6-3 decision, the Canadian Supreme Court agreed with Trudeau’s Liberals that they did.

“This matter is critical to our response to an existential threat to human life … As a result, it passes the threshold test and warrants consideration as a possible matter of national concern,” the judgement said.

Canadian politics will be interesting this year. Trudeau has a minority government and will roll out a new budget next month. After that or after the vaccine rollout, he’s likely to call an election and try to get a majority.

He’s riding fairly high in the polls and a vaccine will help.

The playbook will be for him to say as little as possible during the campaign and then hike taxes after he has a majority, particularly on the wealthy and focusing on capital gains as well. This decision could also give him the power to increase the carbon tax.

Invest in yourself. See our forex education hub.

Articles You May Like

USD/CAD holds below the 1.3600 barrier, eyes on BoC rate decision
Eurozone February final consumer confidence -15.5 vs -15.5 prelim
WTI Oil jumps to $78 as markets expect OPEC production cuts to extend into Q2
Russell 2000 technical analysis with 1 simple picture
EUR/USD rebounds on Friday after US ISM PMI miss sparks risk-on investor appetite