Carbon rebate will mean Canadians are better off

Re: Trudeau’s litany of broken promises and

higher carbon taxes, Jan. 8

Some of what the writer says is worth paying attention to, particularly the concern for oil workers in Alberta whose industry is dying anyway. The government needs to provide a way to protect them.

But for the most part the article is quite misleading. The most important deception is that the writer conveniently forgets to mention that the announced increases in the price on carbon are accompanied by an equivalent rebate. The rebate means that all but the wealthiest 20 per cent of families will be better off — families earning less than about $165,000 will receive more in rebates than they will pay in increased prices.

Many people don’t even realize that they are already receiving this rebate. My rebate in Ontario last year was $336 but it was buried on line 449 of my tax return. I think my rebate this year will be $504, and it will continue to rise as the carbon price rises.

With the plan announced in December, rebates will be distributed quarterly and more visibly.

Of course the main point of a carbon price is that it provides everyone with an incentive to avoid the increases that we know are coming. For example, you can buy a smaller car or drive less or both. And you can increase the energy efficiency of your home or even switch energy sources.

To provide some context on the personal impact let’s address gasoline prices, something that we all pay close attention to. This year with the carbon price at $30 per tonne, the impact on the gas we buy at the pump is about 6.6 cents per litre. The plan calls for the carbon price to continue by $15 per year until 2030 when it reaches $170. This will result in an increase of 37.5 cents per litre in 2030. We have plenty of warning and can start planning to avoid that increase with our next car while still pocketing the rebate.

As an example of the overall economic impact of this measure, Sweden has had a price on carbon for nearly 30 years and their economy thrives while their GHG emissions decline. It will work in Canada, too.

Guy Hanchet, Lakefield