Trudeau's complex carbon tax leaves some Canadians ahead of the game, while others are feeling the pinch
Dealing with high energy prices is clearly a challenge for Canadians, especially since the price of fossil-fuel-based energy is the target of a carbon tax imposed by the Trudeau Liberals to save us from a projected climate crisis. For farmers, small business owners, residents of certain provinces and commuters, the tax is a burden.
Homeowners in Atlantic Canada were understandably pleased to hear last week that Prime Minister Justin Trudeau’s Liberals will fix the carbon tax to offset the high cost of heating oil in the region.
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But not all of us are facing the carbon tax pinch. Take me, for example. First of all, my car is an electric Chevy Bolt. Living in downtown Toronto, I don’t drive much and have to recharge it maybe once a month at a cost of around $7 or $8, a fun thing to do when the nearby Canadian Tire gas station flashes a price of $1.60 a litre.
While my direct fossil fuel consumption is negligible, the condo I live in consumes one kind of fossil fuel: natural gas. At our annual meeting last weekend, the budget documents show our natural gas expenses for the whole building this year will hit $43,000, up from $33,000 last year, an increase of about $192 per unit for the year.
This isn’t a huge burden to bear for residents of our building. In my case, it’s a total non-event. Almost on the day the prime minister announced his Atlantic heating carbon tax exemption, a little brown Government of Canada envelope landed in my mailbox. It contained a cheque for $183. No explanation was attached to the cheque, so I called the government’s benefits line (1-800-387-1193), where a recording informed me about the quarterly Climate Action Incentive payment.
Wow. What a great deal. Not only did that one cheque just about cover the increase in natural gas costs for our condo for the whole year, another little brown envelope will be in the mail in January. According to the government’s website, my wife and I will receive $183 every quarter for a total annual payment of $732.
Of course, the annual payment is intended to offset all the costs the carbon tax imposed on everything purchased. According to the Parliamentary Budget Office (PBO), “Most households will see a net gain, receiving more in rebates from Climate Action Incentive payments than the total amount they pay in the federal fuel charge (directly and indirectly).”
By 2030-31 in Ontario, for example, the average household will receive rebate cheques that exceed the rising carbon tax cost by $202.
There are other complicating factors in the PBO calculation, including the projection that the carbon tax and rebate system will increase federal deficits by $34 billion between now and 2031. It will also cause major losses in economic activity, including incomes.
It’s all very complicated. The bottom line is that some Canadians in some regions are feeling the pinch of the carbon tax, while other Canadians have a feeling they are ahead of the game. I have my cheque as evidence.
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Trudeau's complex carbon tax leaves some Canadians ahead of the game, while others are feeling the pinch
Dealing with high energy prices is clearly a challenge for Canadians, especially since the price of fossil-fuel-based energy is the target of a carbon tax imposed by the Trudeau Liberals to save us from a projected climate crisis. For farmers, small business owners, residents of certain provinces and commuters, the tax is a burden.
Homeowners in Atlantic Canada were understandably pleased to hear last week that Prime Minister Justin Trudeau’s Liberals will fix the carbon tax to offset the high cost of heating oil in the region.
Enjoy the latest local, national and international news.
Enjoy the latest local, national and international news.
Create an account or sign in to continue with your reading experience.
Don't have an account? Create Account
But not all of us are facing the carbon tax pinch. Take me, for example. First of all, my car is an electric Chevy Bolt. Living in downtown Toronto, I don’t drive much and have to recharge it maybe once a month at a cost of around $7 or $8, a fun thing to do when the nearby Canadian Tire gas station flashes a price of $1.60 a litre.
While my........
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