The Liberal government may very well be preparing to rapidly increase the carbon tax once all provinces are following the national standard, that is if they truly believe in what they are pushing forward.
Earlier this week the Conservative opposition repeatedly asked the governing Liberals whether the tax will increase beyond the $50 per tonne standard set out in the current federal plan, and each time they refused to answer.
NEWS: The Liberals have declined to confirm that they won’t raise the Trudeau Carbon Tax beyond $50 per ton. When asked four times in #QP on Friday, the Liberals did not answer pointed questions about future price increases to their Carbon Tax. #cdnpoli pic.twitter.com/aTA43KTnta
— OLO/BCO Comms (@OLO_BCO_Comms) November 2, 2018
Canadians will be paying more than the government claims
While interesting, it is not surprising to see a potential increase as a recent U.N. report predicted that the carbon tax would have to range between $135 to $5500 in order to reduce carbon emissions by a meaningful amount.
Given the extended time-frame of 2022 to implement the tax and have it reach the current $50 limit, the nation would logically have to rapidly increase the cost of the program on ordinary citizens in order to reduce the excess carbon produced now.
If the prime minister truly believes in the incoming intensity and severity of climate change, he would certainly have to increase the carbon tax or provide another avenue to make up for the carbon emissions made.
The lack of messaging or action to allow individuals to properly adapt is what is most surprising.
If Prime Minister Justin Trudeau believes that climate change is so destructive that Canadians should pay a potential $638 dollars in carbon taxes to fill up their cars, then he should state that clearly and allow Canadians to adapt rapidly.
For those wondering, a carbon tax at $5500 per tonne works out to about $12.78 in carbon taxes per litre of gasoline. So filling up your car with 50 L of gas would cost you $638 in carbon taxes alone (plus the actual cost of the gas). https://t.co/q6yguneZU0
— Aaron Wudrick (@awudrick) October 10, 2018
Perhaps the largest problem in this entire situation comes from a lack of clarity and execution from those in charge.
Even when it comes to the messaging around the tax rebate, the government has been unclear.
At times it has been arguing that taxpayers will receive more than they pay while claiming that the numbers will be revenue neutral, and all the while only returning 90% of the total funds – without mentioning the revenue collected by imposing a tax on the carbon price itself.
The math doesn’t add up
While the math does not add up, the “fairness” equation fails just as poorly.
Ordinary citizens will likely see their taxes rapidly increase to offset carbon emissions, while coal plants will pay as low as $1 per tonne, 1/50th the amount you and I will pay by 2022.
“The bottom line is that yes, Canada is going to put a price on carbon, and that’s a great step for climate policy. But if the government is going to turn around and subsidize coal more than any other form of electricity generation, they will also distort the operation of, and investment in, electricity markets—which would negate much of the beneficial effect of the carbon price. The end result? Less emissions reduction, and more air pollution.” – Blake Shaffer
Exemptions are required to maintain competition
However unfair, the exemptions to me make sense. It is obvious a carbon tax will kill competition when our neighbour is rapidly freeing its own energy sector.
What doesn’t add up is the overall goal of the Liberal party when it comes to its cherished tax.
What is the point of setting up a tax in which large carbon emitters pay nearly nothing and local users supposedly get back more than they pay?
That is hard to tell, what is clear though is the lack of results that will likely come unless immense cost increases are pushed forward with increasing speeds.
Meaning, that either the Trudeau government will back off, leaving us with another empty tax – draining your pocketbook without purpose, or the possibility of a hundred dollar surcharge on fuel in the near future.
All of that worries me and perhaps it should worry you too.
What do you think about the handling of the carbon tax?
Should large emitters receive massive benefits?
More importantly, do you believe the tax is more a method to virtue signal and collect a few dollars, or are we heading for a massive increase?
Join the conversation by commenting below!