Politicians opposing carbon pricing always forget to mention the rebate part
To the Expositor:
Ontarians who filed their income taxes this year will receive a Climate Action Incentive Payment (CAIP) deposited into their bank account, or by cheque. The CAIP is the name the federal government uses for the “rebate” part of the carbon tax and rebate. I was happy to see I’ll get $536.80 this year, in four instalments. The standard is $488, and extra for couples, families and rural residents.
The rebate is tied to the revenue from the carbon “tax” and they both rise in tandem every year. Ninety percent of the government revenue from the carbon tax goes back to us through the rebate. The way it works turns out to be an extra tax on the richest 20 percent because they drive more in bigger vehicles, they heat bigger homes, and in general they use more fuel, so they pay more in carbon taxes. But they don’t get a bigger rebate than anybody else. Most people get more money back than they spend on the carbon “tax” to spend on whatever they wish.
I think the federal government should have called it “Cash-back carbon pricing” instead of “Carbon tax and rebate” because politicians who oppose it always forget to mention the rebate part. Besides, is it really a “tax” if you get it back? Every year, the carbon tax rises, and so does your rebate.
There are various ways to reduce the greenhouse gas emissions that are still on track to destroy life on Earth as we know it, but “cash-back carbon pricing” aka “carbon tax and rebate” is an effective and necessary tool to reduce emissions. The single most important number to remember is the carbon dioxide concentration in the air, which is 415 parts per million now, up from 280 parts per million in the 1700s, before we started burning coal, oil and natural gas. At around 450 parts per million, average global temperatures will rise by 2°C, which will cause widespread disruptions to both humans and nature.
Jan McQuay
Mindemoya
