It appears Trudeau is finally looking at the numbers and assessing the damage his carbon tax will have on the Canadian economy, and has decided to make some adjustments. One has to wonder if this is a minor concession, or the beginning of the end for this albatross.
Justin Trudeau gave an inch on carbon taxes. Next comes the mile
Under the previous formula (a complicated one, even by tax law standards), large industrial emitters — those releasing 50 megatonnes of carbon dioxide annually or more — would have received a subsidy per each unit of production, up to a value of 70 per cent of the average sector-wide cost of that unit. The subsidy, in the form of a tax break, is designed to see that companies exporting steel, iron, lime, nitrogen fertilizers and cement are not at a disadvantage in export markets in competing against producers from countries with no carbon tax (i.e., nearly every other country on earth) or with lower carbon taxes.
The Liberals now say they’re increasing the subsidy to at least 80 per cent of the sector average and in some cases they’ll be going as high as 90 per cent. This is not, per se, a cut to the carbon tax, but it’s certainly going to have a similar effect: under the new plan, large industrial emitters will pay less to emit the same amount of carbon. This is apparently in reaction to strong opposition from large industrial companies that the carbon taxation plan the Liberals had proposed, intended to enter into effect next year, would cripple their operations in a time of increased competition from the United States and already rising trade barriers.
With Saskatchewan and Ontario rejecting a carbon tax outright, and Alberta looking at the possibility of a change in government which has already stated it's objection to carbon taxes, it seems Trudeau has an uphill battle ahead of him. With 2 out of 3 Canadians feeling that provinces should have final say on carbon tax, and given the looming Federal election, he appears to be softening his stance somewhat.
‘We’re not done’; Carbon tax plans could still change more as feds weigh cost to Ontario businesses
“We’re not done. No final decisions have been made,” said John Moffet, assistant deputy minister of the environmental protection branch of Environment and Climate Change Canada, in a briefing at the National Press Theatre in Ottawa.
“In principle, I would say this government is open to further changes.”
Justin Trudeau gave an inch on carbon taxes. Next comes the mile
Under the previous formula (a complicated one, even by tax law standards), large industrial emitters — those releasing 50 megatonnes of carbon dioxide annually or more — would have received a subsidy per each unit of production, up to a value of 70 per cent of the average sector-wide cost of that unit. The subsidy, in the form of a tax break, is designed to see that companies exporting steel, iron, lime, nitrogen fertilizers and cement are not at a disadvantage in export markets in competing against producers from countries with no carbon tax (i.e., nearly every other country on earth) or with lower carbon taxes.
The Liberals now say they’re increasing the subsidy to at least 80 per cent of the sector average and in some cases they’ll be going as high as 90 per cent. This is not, per se, a cut to the carbon tax, but it’s certainly going to have a similar effect: under the new plan, large industrial emitters will pay less to emit the same amount of carbon. This is apparently in reaction to strong opposition from large industrial companies that the carbon taxation plan the Liberals had proposed, intended to enter into effect next year, would cripple their operations in a time of increased competition from the United States and already rising trade barriers.
With Saskatchewan and Ontario rejecting a carbon tax outright, and Alberta looking at the possibility of a change in government which has already stated it's objection to carbon taxes, it seems Trudeau has an uphill battle ahead of him. With 2 out of 3 Canadians feeling that provinces should have final say on carbon tax, and given the looming Federal election, he appears to be softening his stance somewhat.
‘We’re not done’; Carbon tax plans could still change more as feds weigh cost to Ontario businesses
“We’re not done. No final decisions have been made,” said John Moffet, assistant deputy minister of the environmental protection branch of Environment and Climate Change Canada, in a briefing at the National Press Theatre in Ottawa.
“In principle, I would say this government is open to further changes.”
