Eighty per cent of us receive more money in quarterly carbon rebates than we pay in carbon taxes.
And as carbon taxes rise each year most of us will be even better off in future.
If Conservatives axe the tax, it’s mostly the rich, those who pollute more, and pay the most taxes, who will be better off. Richer people often heat more than one large home with gas, fly a lot and pay more carbon taxes than the rest of us.
For a family of four in 2024/5 including the 20% rural top up, the current quarterly carbon repayment in Muskoka is $336, or $1,344 a year. Look out for these rebates in April, July, October and January, either as deposits in your bank accounts, or cheques in the mail.
(Farmers are exempt from paying pollution charges on all their gasoline or diesel fuels, so that 97% of on-farm emissions are exempt from pollution charges and farmers will receive more tax credits as time goes by to help them transition to lower carbon farming methods).
So you may ask what is the point of carbon taxes other than to redistribute income from the rich to the less rich? The answer is a well established principle in economics… the Polluter Pay Principle.
Imagine somebody who is discharging chemicals into a river and contaminating the water. In the process they kill the fish and incomes of fishermen downstream. It would be only fair to make those polluters pay compensation to the fishermen. And if the fine for polluting were to rise over time the polluters would have an incentive to find a cleaner way to operate. It is the job of governments to make that happen.
And so it is with carbon taxes. Over 72 countries use carbon taxes to reduce carbon pollution, and they do so because it works. It is estimated that carbon pollution pricing will reduce Canada’s emissions by 33% by 2030.
Governments know that changing prices changes behaviour. Decades of experience show that people try to switch to cheaper purchases as the price of one thing rises by comparison with another. So, as carbon taxes rise on fossil fuels (which are the main cause of climate breakdown), people will try to find ways to spend less on fossil fuels (coal, oil, gas, diesel, propane, methane). By buying fewer fossil fuels they will save money and also emit less carbon pollution.
They (we) might do so by:
- Reducing indoor temperatures by a degree or two in winter,
- Cutting highway speed by 20% (which will save 20% on fuel costs and cut pollution by 20%),
- Plugging leaks around doors in winter to keep homes warmer, needing less gas heating,
- Switching to heat pumps (which are fuelled by electricity) when gas furnaces need replacing. Cold climate air source heat pumps are a cheaper way of heating (and cooling) than gas furnaces.( In Ontario, to save energy, heat pumps with 10 year warranties are now being given away FREE, installation included, to low and medium income households who currently heat with electricity, such as baseboard heaters.)
- Car pooling to cut gas costs in half or better,
- Switching to electric cars and trucks to save hundreds of dollars over the life of the vehicles and produce no carbon pollution when driving. 70% of Muskoka’s carbon pollution comes from transportation.
- Drying laundry on racks or clothes lines, and washing laundry in cold water, means no carbon emissions and saves $100s.
82% of Canadians are very worried about climate change. They want action by governments to reduce greenhouse gas emissions to help keep global warming to the Paris Agreement target of a 1.5%C increase.
Carbon taxes are an effective way for governments to make a positive difference. You too can do your part, and use the carbon rebate as one of your incentives to change to a lower carbon future.
Lesley Hastie
Huntsville
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Don’t believe anyone.
Especially PP.
Just figure it out yourself.
We paid $300 for the carbon tax on nat gas and $300 for gasoline and got $800 back in Ontario so we are up $200.
The rebate goes up as the tax goes up.
The rebate is up to $2160/year for a family of 4 in rural AB.
Depends on province and family size. Not all provinces have the tax and rebate.
For the rebate amounts by province search “Government announces Canada Carbon Rebate amounts for 2024-25”
As far as the carbon tax effect on inflation:
“In September, Bank of Canada governor Tiff Macklem said the carbon tax contributes about 0.15 percentage points to the inflation rate.”
Peanuts. Almost nothing.
Search “Energy minister says Poilievre ‘should stop lying to Canadians’ about carbon tax.”
But lying is all he’s got.
He’s mad now that economists and others agree that most get more back.
You know a politician is wrong when he gets all mad when presented with the truth.
80% of Canadians get more back with the carbon rebate than they pay in the tax.
100% of low incomes get more back so it’s a net benefit to Canadians that are struggling with inflation and need it the most that Poilievre wants to take away.
For proof of the effectiveness of the tax search ” ecofiscal /2024/03/26/open-letter-ca.” for the report from the 200 economists. Their names are at the bottom.
Funny how “Scott Moe says Saskatchewan considered carbon tax alternatives, but found them too costly”
What a Stooge.
Search and watch the video “Saskatchewan softens tone in carbon tax battle with Ottawa.”
So Moe found out from the feds that his plan is “illegal and likely to cost residents more money by cutting off the federal carbon tax rebate.”
What a Stooge.
The rebate goes up April 1 along with the tax.
I find it interesting that gasoline jumped in price by 10cents a litre before the tax. I guess the oil and gas companies are getting ready.
The article in regard to don’t axe the tax letters is riddled with false information. Carbon tax does not save the environment. The liberal green programs do not help climate change, especially investing in mining lithium and cobalt accelerates climate change. The liberals are going to be destroyed in the next federal election. Do this day Pierre is on track to win the largest majority in Canadian history. The conservatives are going to put forward plans that are actually carbon neutral and empower our economy with clean Canadian natural resources. After all. It’s not Canadas carbon footprint that’s causing the issue. The least we could do is put the big polluters out of business by selling clean Canadian energy. Let companies like Toyota move forward with there new hydrogen fuel sell that is carbon neutral, cleans the air as it drives and the bi product is clean water. Scrap the battery plants. After all, climate change is a series of patterns and cycles that will continue to thrive regardless of human impact. That’s why we can see in the ice caps and from core drilling that earths temps and c02 levels were crippling to todays standards before humans ever walked the earth.
What I’m trying to say is the liberal green programs are lies and scams.
Trudeau should just resign now.
Also it’s been proven in the House of Commons that all provinces pay more on carbon tax than they get back in rebates.
Ontario residents pay: over 1600.00 per person
Ontario residents get back 1100.00 per person
We do not get back more than we pay.
Lots of back and forth on the carbon tax and smoke and mirrors.from both sides. The Parliamentary Budget office disputes the Govt claims. The climate groups have opposite opinions. The carbon tax generates billions of dollars of GST/HST which is a heinous tax on a tax program we all pay when the tax is collected. We don’t seem to get that back! I don’t believe it is used to reduce carbon causing one to think it simply goes into general revenues. The lack of clarity and a disastrous communication effort seems typical for this government. No wonder there are a lot of disconnects.
IMO … This data doesn’t to me seem to be a major problem to the world? ie. ..”Canada produces less than 1.5% of the world’s greenhouse gas (GHG) emissions. Of that, Canada’s oil and natural gas industry produces about 0.3% of overall global GHG emissions.” It appears all the climate change alarmist and carbon tax lovers should go after these countries.
1.China is the largest emitter of carbon dioxide gas in the world, with 11,336 million metric tons emitted in 2021. …
2.The United States. The U.S. is the second-largest emitter of CO2, with 5,032 million metric tons of total carbon dioxide emissions in 2021. …
3.India. …
4.Russia. …
5.Japan.
IMO .. Good luck trying to get the above government admins to destroy their economies, life styles, values and most importantly .. all their key performance indicators to meet the demands of their citizens! I think the writing is on the wall for our leaders JT/NDP and I am sure when & if they call an election .. the voting will not be in their favours!
If Ford and Poilievre were honest they would mention the big carbon tax rebate when they complains about the tax.
They are not.
Fooled quite a few it seems.
The rebate is up to $1,800/year. Depends on province.
The rebate goes up as the tax goes up.
It’s also true the foolish people complaining about the tax don’t even realize how much they get back with the rebate.
Search “Is the carbon tax suffering from a failure to communicate?”
Even Moe in Sask is finding out the reality that most people get more back with the rebate than they pay so it’s a net benefit.
Search and watch the video “Saskatchewan softens tone in carbon tax battle with Ottawa.”
Just like the other two stooges Ford and Kenney when they tried to weasel out of the carbon tax and lost. Ford is still sore about losing that one. Just like he’s sore about losing in court with his illegal bill 124.
Good afternoon, and what a blessing this beautiful day is!
A few questions:
Are we still giving pollution credits to foreign companies that come to Canada because they can’t operate and pollute in their own country?
If so again, why are Jack and Jill Canadian’s being taxed for it?
Given that Canada is one of the largest carbon sinks, and reportedly 70 other countries have signed onto ‘the carbon tax’, Why are those $$$$$$$$$$$$$$$$$$$$ not coming to Jack and Jill?
As far as the rest, percentages, calculators, dates, international this’n’that words aren’t what Jack and Jill are concerned with, – as they’re tumbling down our resource management hill?
To Nathan, Karen, Doug and Bob,
If you are not climate change deniers and believe we and our governments must act, please consider what viable alternatives political parties have proposed that will reduce carbon emissions by 33% by 2030. There are none. The source of the estimated 33% reduction is Four Charts on Canada’s Carbon Pollution Pricing System
By Ian Parry, IMF Fiscal Affairs Department.
The savings I’ve suggested do work, and there are more at climateactionmuskoka.org.
I realise life is very tough for many people now. And anything that sounds like a tax sounds bad. But this is a way to give our children and grandchildren a better future.
Our local council is working hard to mitigate the effects of climate change.
Our provincial and federal representatives are working hard to get more carbon into the atmosphere.
Why don’t they unite and fight for cleaner air and a stable environment?
The world is going to change to solar energy, because sunlight is free, and science has found a way to produce and store electricity economically. More than 90 percent of new energy projects are solar, wind and batteries. In the end, the world will stop using carbon based fuels.
The Conservative parties are fighting for oil companies, oil company workers and oil company investors. They want to prolong the poisoning as long as possible.
It is not hard for me to support our local council. Thanks for the work you are doing on our behalf.
Too bad our MPP and MP are prioritizing pouring gasoline on our heating planet (literally).
Justin Trudeau is taxing Canadians into the poor house. And dumb Ontarians keep voting for this idiot. Stop it! The last 9 years have been awful and the next 18 months will be disastrous. Just remember what JT said “budgets balance themselves” and in 2020 JT gave Loblaws $12 million dollars for new fridges. All the large companies in Canada are run by Liberal supporters. So a vote for the Liberals are a vote for the 1%.
I hear the “ax the tax” argument… and it makes sense. Things that require carbon (oil, gasoline) inputs become more expensive. Maybe only slightly but nevertheless. Groceries are shipped and the further they travel, the more fuel is required. The more plastic you buy, the more you pay. The more everything you buy from afar, the more you pay. Right?
So, what to do? Drive less/slower? Buy more locally produced everything? Grow your own? Make your own? Trade? Borrow? Buy used?
Reducing our mindless consumption might not be the best thing for our economy as it’s currently structured (whole other topic) but it might be good for our environment and our pocket books if we adopt the right strategies. But first we have to figure out how to break our addiction to cheap crap. Is the carbon tax the right mechanism to do it? Possibly…but might need to be rebranded.
If you live in Ontario and filed an income tax form last year you or someone else in your household received hundreds of dollars from the money collected by the federal goverment “carbon tax” paid quarterly. Check your bank accounts for unexpected quarterly deposits before claiming your houshold didn’t receive it. (Don’t expect it to be labelled “carbon tax rebate” that’s where the goverment really bungled this). This INCLUDES not only what people paid for fuel but also price increases directly related to the levy. These payments would have to stop if no money was collected. Do you think corporations would reduce their prices?? I don’t.
We HAVE to act now to reduce carbon pollution. Any politician who removes the carbon levy had better have another plan in their back pocket that can be put into action immediately.
In this article is a web-based calculator with which you can see for yourself how your household may fare regarding money in or out of pocket relative to carbon price/rebate. The calculator includes indirect costs:
https://www.cbc.ca/news/canada/calgary/cbc-federal-carbon-tax-calculator-2023-24-year-65-dollars-per-tonne-1.6891467
For this statement: “It is estimated that carbon pollution pricing will reduce Canada’s emissions by 33% by 2030” it needs a reference to prove legitimacy. Great if true. I’ve never seen data regarding whether or not the current program is making a difference.
Great comment Lesley Hastie and Hugh Holland!!
For the nay side, I keep hearing about rural residents having to drive farther than others. Well, tell that to those driving across Toronto from outlying regions as far as Guelph, Bowmanville, Barrie, Aurora and so on.
It is costing those folks too, so I don’t buy it.
This is about changing behaviours, driving slower (speeds now on 400 series highways are regularly 130kph). And about changing mindsets of “fossil fuels are the only answer”. It’s about change, and most do not like change, but we need to change for our great great grandchildren…
And don’t buy the comment that “EV’s are more expensive”. My IONIQ 5 cost the same as any baseline crossover. Ford F150, same deal. AND my EV, gives me 400 to 500 FREE kilometers EACH month with regenerative braking.
Keep it up Lesley and Hugh and others like Climate Action Muskoka!!
Best to All,
Paul Kuebler
Hugh Holland: “Axe the Tax” simply means that consumers WANT TO CONTRIBUTE NOTHING to reducing emissions and want to dump the entire burden of reducing emissions on producers.
Um, no, that doesn’t follow. People want to contribute to protecting the environment, but a carbon tax which drives up the costs for virtually everything and therefore punishes people not based on their carbon consumption, but where they happen to live, is idiotic.
Try telling rural people who need to drive to work every day that they simply need to stop consuming products which are subject to the tax. Or people who use grocery stores for that matter. There are a myriad of market-based incentives available to incentivize movement to greener products. Slapping a tax on everyone isn’t a good solution.
Nor is it “uninformed” to think its a bad idea.
Wow, I can’t believe after reading this article and then reading some of the negative comments that people still don’t get it… You get MORE money from the rebates than you actually pay in carbon tax.
This miopic viewpoint is exactly what the conservatives are counting on because anybody who knows anything about politics knows that the conservative party only cares about the rich and big business and do anything to please them. Killing this tax will do exactly that because they’re the people who pay the most in carbon tax, not the average person… just like the article said.
I totally agree with Nathan Cockram and Karen Insley. I couldn’t say it better and won’t try.
Yes, Covid 19 and wars in Europe and the Middle east have disrupted many things including supply chains, interest rates, etc. causing a spike in inflation and tight budgets for many. But the current hardships are nothing compared to what most of our ancestors went thru, and what our kids and grandkids everywhere WILL go through if we don’t get a handle on climate change.
“Axe the Tax” is an extremely short-sighted and illogical idea that would come back to haunt us much sooner than we realize. Canada would quickly become an international pariah. “Axe the Tax” simply means that consumers WANT TO CONTRIBUTE NOTHING to reducing emissions and want to dump the entire burden of reducing emissions on producers. And producers will fail because they will rightly say they can only produce what consumers want. Unless both consumers AND producers are willing to make a contribution, we will all fail. That is the reason why the world’s top economists and over 70 countries have embraced the carbon tax. Only the uninformed and selfish will disregard their long-studied advice.
WE CAN ALL AXE OUR OWN TAX BY SHIFTING TO PRODUCTS THAT DO NOT ATTRACT A CARBON TAX, IF WE CAN TEAR OURSELVES AWAY FROM POLIEIVE’S BAD ADVICE LONG ENOUGH TO THINK. That is the best favour we can do for our kids and grandkids.
Thanks Lesley for your well researched letter. The Carbon Tax is a bit of a sin tax like those on cigarettes and alcohol which are also unhealthy for humans. The emissions from our dependence on fossil fuels pollute the atmosphere and increase our health risks especially for those in less advantageous economic positions (due to age and disability barriers, inadequate housing, less access to appropriate primary health care, healthy food and education) Even fugitive emissions from natural gas furnaces and other gas appliances compromise indoor air quality and leads to more childhood asthma problems. Also unhealthy, and economically challenging, more drought and forest fires, and floods, occurring as a result of human made climate change.
No one loves paying more at the gas pump, or for heating fuel and the added taxes make me think about my continued consumption of gasoline and propane. On a senior’s household budget, continuing affordability is a concern that hopefully will be improved by better insulation and a heat pump, planning my driving trips to town, eating less meat, line-drying laundry etc. It is also a responsibility to care for the young people who inherit our problematic world. We need to admit we have become fossil fuel addicts and are consuming more than we need of the earth’s resources.
Well said and sourced. It has made a big difference to our family to be greener in as many ways as possible, but mainly as an example for our children to give them hope.
What an article title and content at a time such as this. With all the increased hardship and struggling for Canadian individuals, and families caused by inflation, TAX and governments’ continued hyper-inflationary spending, (See Bank of Canada President’s report admission ).
A TAX is a TAX is a T A X! A definition is always informative, (ref. Dictionary of the English Language, 5th Edition) “A burdensome or excessive demand; a strain.”
In this case, it is used to build political/bureaucratic empires; socialist/autocratic governments. Do you know how many times the federal government bureaucracy has increased in the last decade, (2x)? And other levels?
These $ handouts have been determined by the Federal Auditor General to NOT be a benefit! But do show negative deficits to the ‘average Jack or Jill’ and family. Read the report, or review the House of Commons presentation of Carbon TAX key facts & questions posed by the Leader of the Royal Opposition to the NDP/Liberal Leader, (who by the way, publicly covets China’s Dictator)!
It’s not just this TAX, but the cumulative effect of TAX on TAX and it’s burdensome impact on all our life quality in Canada. Think of the local double digit PROPERTY TAX passed by Council, (this affects all owners & renters); the Health care TAX, (premium), Income TAX, GSTAX, Heating TAX, Gas TAX, and this latest ‘CARBON TAX, whew, to name a few big ones!
As aside: Do you know a big fact about creation & it’s scientific reality: Carbon is a building block of all life. A ‘0 carbon emissions policy’ means what exactly?
The argument offered ignores a very important element of the Carbon Tax which contributes to its making life less affordable: the increased taxes on large emitters is not simply absorbed, it is offset by higher energy prices to consumers. This has the effect of making every product which uses energy in production or shipping – virtually everything – more expensive. This also contributes to inflation.
So to say that most get more money back than they put it ignores the reality of higher consumer costs across the board. And coupled with the fact that most people in small towns have to drive more for work, the result is a regressive tax which punishes people for where they happen to live.
No thanks.
The environment is important, but we need to transition to a green economy in a responsible way, a way which doesn’t punish average Canadians trying to make a living. This is exactly what the ham-fisted carbon tax does.
Good summary Lesley! Thanks for this.