Monday, 19 November, 2018

PM, ministers to announce carbon tax rebate plan

4:00pm file 4:00pm file
Theresa Hayes | 27 October, 2018, 10:53

Prime Minister Justin Trudeau speaks to reporters and students at Humber College in Toronto about the new federally imposed carbon tax on Tuesday, Oct. 23, 2018. For example, Saskatchewan and New Brunswick, where most electricity still comes from coal, will pay more in carbon levies than Manitoba or Ontario, where most electricity comes from renewable sources.

Battlefords MLA Herb Cox seconded the premiers' message and maintained the province will continue to fight the tax in court.

The federal fuel charge will be levied at $20 per tonne of carbon emissions in 2019, rising by $10 per tonne each year until it reaches $50 per tonne in 2022.

But the start date has been pushed back four months, to allow affected government's and industries to prepare, with 90 per cent of all the money being returned directly to Canadians affected by it.

How much money can you expect to get, you ask? Those living outside of metropolitan areas, because of geography and lack of transit access, will be given an additional 10 per cent.

Kelly also warned the government against introducing an overly complicated application process to apply for rebates, saying that a series of tax changes over the Liberal's time in power has increased the administrative burden for business owners.

Here's how those dollars will be doled out.

When iPolitics finished asking whether the rebates are a way to get voters on board with the idea of a carbon tax, Trudeau maintained it's only about helping families transition to a new normal.

$77 for the second adult in a couple.

Trusting Trudeau on carbon taxes is key.

$38 for each child in the family (starting with the second child for single parents). If those funds are instead used for general government revenues, it could intensify pressure on large-scale firms as Canada's carbon tax rises each year.

A typical family of four will receive $609 back in 2019.

Unlike some political leaders, both in Canada and elsewhere, the prime minister said he is not willing to pass the burden of climate change on to our children and grandchildren. The majority - Alberta, British Columbia, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut, Prince Edward Island, Quebec and Yukon - have either developed their own systems or adopted the federal pollution pricing system. The government estimates the carbon tax will increase gasoline prices by 4.4 cents per litre in 2019, increasing to 11 cents per litre in 2022.

For either having their own plan, or adopting the federal government's, all nine of these governments get to decide for themselves how the revenue from their plans will be spent and will not be part of this rebate system.

For the province's Justice Minister, the federal government doesn't have the right to tax differently in different provinces. And some people win more than they pay.

Trudeau said the 2014 agreement for light armoured vehicles, signed by Canada's previous Conservative government and a Canadian unit of United States weapons maker General Dynamics Corp, had been written in such a way that taxpayers would have to pay a large amount of money to end it.

Premier Doug Ford, who says he believes in man-made climate change but hasn't unveiled his plan to reduce industrial greenhouse gas emissions linked to climate change, is warning Ontarians not to believe Trudeau.

Further details are being announced through the day, with cabinet ministers making announcements in Saskatchewan, Manitoba and New Brunswick.

The carbon tax is set to be a critical element for debate in the next federal election with the Conservatives promising to scrap it if they are elected and growing push back from premiers.