What Are The Pros And Cons Of Carbon Tax In Canada

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Carbon Tax Debate The issue of enacting federal carbon tax is one of the most debated in Canada right now. The Liberal party says that the tax could reduce carbon emissions by 90 million tonnes and will bring us twice as close to our Paris climate goals. The Conservative party believes this will unfairly affect consumers with higher taxes. I personally believe this plan should be enacted but with safeguards in place to help consumers and Provinces who would be negatively affected. The biggest problems with the carbon tax are the adverse effects on consumers and Prairie Provinces. Consumers would be hit with a larger tax bill for using appliances they have become dependent on and higher prices on gas for their cars. The Prairies get a large part of their GDP from oil and other fossil fuels and a carbon tax would hurt them substantially. These are the two major sticking points that I see in applying the carbon tax on a national level. …show more content…

CBC says for the law to be implemented the average “family would pay $400 more this year to heat their home.” For the tax to not adversely affect consumers there should be a tax break for those who cannot afford an extra payment. For example, those, in the lower middle class or those in poverty would receive a tax break equal to the amount they would owe for the carbon tax. This ensures that the most venerable citizens are protected from increased taxation and that the burden will fall on those who can afford to pay it. Alberta’s carbon tax is a great example of this. According to the Huffington post they, have income-based rebates along the lines of “$200 for single adults, $300 for couples and $30 per child”. This perfectly represents a good solution to this