Carbon tax and Premier Furey
Mr. Poilievre and our Premier Furey are against the carbon tax hike, of course, out of the concern for the hard-working Canadians struggling with the affordability crisis.
Except … that this crisis has nothing to do with the carbon tax – countries with a carbon tax often have a higher inflation than we have, and it is so because the real driver of the prices are the COVID pandemic, Russia’s war on Ukraine, and oil producers trying to squeeze more money out us all.
Canadian carbon tax, as Mr Poilievre knows, and Premier Furey should know, is revenueneutral: it means every dollar collected is paid back in carbon rebates: in fact, 80 per cent of Canadians get moremoney back than they paid in. It is more than 50 per cent because the pot is sweetened with taxes paid by large and medium-level corporations, which don't get the rebate.
So a 25 per cent hike in carbon tax means a 25 per cent hike in rebates, that is, 25 per cent increase in the net benefit to the 80 per cent of Canadians.
And most of the remaining 20 per cent, can well afford it – not only because their tax is partly offset with their rebates, but also because they can afford so – their tax is higher than rebate because they live in bigger houses in suburbs, drive bigger cars and trucks, ski-doos, ATVS, pleasure boats, and fly to exotic vacations – more than the remaining 80 per cent of us can afford.
So a 25 per cent hike in carbon tax means a 25 per cent hike in rebates, that is, 25 per cent increase in the net benefit to the 80 per cent of Canadians.
As for Mr. Furey saying that Newfoundlanders have it more difficult to reduce our carbon emissions than other provinces - it is already taken into account by the rebate amount being provincially based – so if we pay more in our taxes we get a bigger rebate
I can understand Mr. Polievre – “Axe the tax!” would more likely get him to power than saying the truth: “I want to axe the net benefit to 80 per cent of Canadians!” would.
But why would you, Premier Furey, fall for that cynical political play?
Piotr Trela
St. John's