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Carbon Tax

April 17, 2019

You can read more about a carbon tax here.  Our Canadian carbon tax follows this description quite closely.  Even though it’s called a tax, it’s not a tax like any other.  Instead, it’s a means to change public behavior.

In Manitoba, the carbon tax follows federal government rules.  That’s because Manitoba failed to bring in one of it’s own.  Several other provinces have done the same thing.  I suppose that it allows them to blame the federal government for any hardship that the carbon tax imposes.

Our carbon tax is a tax on fuels that contain carbon.  The increased cost of gasoline and natural gas will affect most people.  There’s also a carbon tax on heating oil, but that fuel is little used in this province.

Coupled with the new tax, there is a rebate that people receive when they file their income tax return.

Of course, there have been complaints:  It’s a tax.  It’s a cash grab.  It doesn’t work.

As I mentioned, a carbon tax is not like other taxes.  The carbon tax on gasoline right now is about four cents a litre.  The provincial gasoline tax is about 30 cents a litre, with no rebate.  In other provinces, it’s about 45 cents a litre, also with no rebate.

There is a rebate on carbon taxes, dependent only on the number of people in the household.  The rebate is 100%, meaning that all of the money collected will be paid back to taxpayers.

People can do many things to reduce their carbon tax but still receive the rebate.  This is the purpose of such a tax.  They can move closer to work,  purchase more fuel-efficient cars, join a car pool, or use public transport.  In the case of home heating, they can upgrade insulation or find alternative heat sources.  If they choose to live just as they are, they can do that too, but they will pay more for fuel.

Eventually, our carbon tax will reduce carbon dioxide emissions.  Eventually, it will affect climate change.  That’s it’s ultimate purpose.

 

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