Carbon tax rebates pay out $225 million more than actual costs
Posted on February 07, 2017 by Greg Clark
CALGARY, AB – Albertans receiving their first heating and electricity bills since the NDP carbon tax went into effect will be surprised to learn that many people are making a profit on the carbon tax rebate, says Alberta Party leader Greg Clark.
“Albertan households earning up to $100,000 per year will receive rebates totaling $225 million more than they pay in carbon tax in the first two years of the program,” said Clark. “There is no justification for anyone to make a profit on carbon tax. It’s yet another example of just how badly designed the NDP carbon tax is.
“A rebate that offsets the actual cost of the carbon tax for low-income Albertans makes sense, but no-one should make a profit on the carbon tax.
“That’s not a carbon tax, that’s a wealth redistribution tax.”
Clark supports a revenue-neutral carbon tax, but worries the poor design of the NDP plan jeopardizes an important tool to reduce emissions and stimulate innovation in Alberta.
“Done properly, a reasonable carbon tax can help us find a sweet spot between the continued success of our energy industry while stimulating investment in Alberta innovations,” said Clark. “Blunders like this cause Albertans to lose faith in the most effective tool in the fight against climate change.”
Clark said the excess money should be used to invest in innovation and to cut other taxes.
“This is a huge amount of money that should be used to support Alberta green-tech entrepreneurs and can be used to reduce business and personal income taxes,” said Clark. “Doing so would create an attractive investment climate and help people hurting from the ongoing downturn.”
“Tax policy should be fair to all Albertans. The NDP have proven time and time again that their policies are built on irresponsible ideology rather than sound judgement and data-driven decision making.”
Clark released the following analysis of how much more in rebates some people receive than they pay in carbon tax.
*The accompanying analysis graphic is based on Statistics Canada’s Social Policy Simulation Database and Model.
The assumptions and calculations underlying the simulation results were prepared by Jonathan Bilodeau and the responsibility for the use and interpretation of these data is entirely that of the author(s).
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