Trudeau’s carbon tax by the numbers

Since the Trudeau government insists 80% of Canadian households paying the federal carbon tax receive more in rebates than they pay in carbon taxes, here’s what independent, non-partisan Parliamentary Budget Officer Yves Giroux said when he examined the carbon tax last year. “When both fiscal and economic impacts of the federal fuel charge are considered, we estimate that most households will see a net loss. Based on our analysis, most households will pay more in fuel charges and GST — as well as receiving slightly lower incomes — than they will receive in Climate Action Incentive payments.” He concluded 60% of households in provinces paying the federal carbon tax (Quebec and B.C. have their own systems) were already paying more in carbon taxes than they received in rebates, rising to 80% in Nova Scotia in 2025, in Ontario in 2026, in Manitoba in 2029 and in Alberta and P.E.I. in 2030. Here’s the net cost, after rebates, the PBO calculated for average households, from 2024 to 2030, as the carbon tax increases by 23% from $65 per tonne of industrial greenhouse gas emissions to $80 on April 1 and then rises by $15 annually to $170 in 2030.

Alberta: 2024 $911; 2025 $1,137; 2026 $1,445; 2027 $1,783; 2028 $2,136; 2029 $2,453; 2030 $2,773.

Ontario: 2024 $627; 2025 $799; 2026 $987; 2027 $1,184; 2028 $1,396; 2029 $1,605; 2030 $1,820.

Saskatchewan: 2024 $525; 2025 $687; 2026 $871; 2027 $1,079; 2028 $1,345; 2029 $1,545; 2030 $1,723.

Manitoba: 2024 $502; 2025 $633; 2026 $791; 2027 $951; 2028 $1,122; 2029 $1,305; 2030 $1,490.

Nova Scotia: 2024 $537; 2025 $665; 2026 $826; 2027 $987; 2028 $1,162; 2029 $1,351; 2030 $1,513.

Newfoundland and Labrador: 2024 $377; 2025 $488; 2026 $637; 2027 $802; 2028 $974; 2029 $1,141; 2030 $1,316.

Prince Edward Island: 2024 $550; 2025 $671; 2026 $838; 2027 $1,007; 2028 $1,172; 2029 $1,345; 2030 $1,521.

New Brunswick isn’t included because it joined the federal system after these calculations were made; the three-year carve-out on paying the carbon tax for households heating their homes with oil will temporarily reduce costs for them. Meanwhile, Saskatchewan is refusing to collect the carbon tax on natural gas. The carbon tax is progressive because households with higher incomes have larger carbon footprints than lower-income ones.

https://torontosun.com/opinion/editorials/editorial-trudeaus-carbon-tax-by-the-numbers