The political justifications for the exemption were obvious. Atlantic Canada only became subject to federal carbon pricing on July 1. Amid the noticeable spike in fuel prices that followed, Liberal support plummeted across the region — leading to a chorus of Liberal MPs warning that if something wasn’t done the party would soon be unelectable.
Ottawa’s decision to zero in on home heating oil ensured a policy that would disproportionately benefit Atlantic Canadians while leaving most of the rest of the country paying full freight. A mere three per cent of Canadians use heating oil, and almost all of those users live east of the Quebec border. In Nova Scotia, nearly a third of homes use oil.
The carve-out threw an even bigger wrench into the Liberals’ longstanding argument that any disparities caused by the tax could be fixed via targeted rebates.
Ottawa’s decision to zero in on home heating oil ensured a policy that would disproportionately benefit Atlantic Canadians while leaving most of the rest of the country paying full freight. A mere three per cent of Canadians use heating oil, and almost all of those users live east of the Quebec border. In Nova Scotia, nearly a third of homes use oil.
The carve-out threw an even bigger wrench into the Liberals’ longstanding argument that any disparities caused by the tax could be fixed via targeted rebates.
FIRST READING: Trudeau’s curious decision to detonate his own carbon tax — National Post
Ottawa's 'carve-out' almost tailor-made to discredit the two main reasons for having a carbon tax in the first place
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