Carbon tax costs Canadians more than they get back in rebates: report
Critics of the carbon tax are calling on the federal government to scrap it after the Parliamentary Budget Officer’s (PBO) latest report revealed just how much it’s costing Canadians.
The Canadian Taxpayers Federation (CTF) says the PBO’s report, released on Thursday, confirms that the federal pollution pricing costs average households more than they get back in rebates.
“This PBO report proves that politicians’ favourite talking point is incorrect and it proves the carbon tax is making life harder for Canadians,” said Franco Terrazzano, CTF federal director, in a statement.
Today’s PBO report confirms (again) the carbon tax costs average families more than they get back in rebates.
But even the Liberals don’t believe their own talking points.
If they thought the carbon tax truly made life more affordable (it doesn’t), they would crank it up to…
— Franco Terrazzano (@franco_nomics) October 10, 2024
The taxpayers’ advocacy group points to a line in the PBO report that says it estimates “that the average household in each of the backstop provinces will see a net cost, paying
more in the federal fuel charge and related Goods and Services Tax [GST], as well as receiving lower incomes (due to the fuel charge), compared to the Canada Carbon Rebate [CCR] they receive.”
Based on figures provided by the PBO, the CTF says the federal fuel charge will cost the average Canadian household up to $399 more than they’ll get back from the rebates this year.
The organization included a table showing the net federal carbon tax costs for the average household in each province, taken Appendix C in the PBO report.
Canadian Taxpayers Federation
The CTF also takes issue with Ottawa charging the GST on top of that.
“It’s simply not credible to believe the government can impose a carbon tax, skim some money off the top, charge its sales tax on top of the carbon tax and then make families better off,” stated Terrazzano.
“Prime Minister Justin Trudeau should take this PBO report as a wake-up call and scrap the carbon tax to make life more affordable.”
Daily Hive asked the PBO to respond to these criticisms. The office did not acknowledge them, but redirected us to the same report.
Critics have also blamed the carbon tax for soaring gas prices and inflation. However, a recent report found that it has actually had little impact on the cost of fuel or goods.
Meanwhile, some Canadians are about to get their last CCR payment of the year.
The carbon rebate, formerly called the Canada Climate Action Incentive Payment (CAIP), is a quarterly, tax-free amount to help eligible individuals and families offset the cost of federal pollution pricing.
According to the government, a family of four may receive the following quarterly payment amounts:
- $450 in Alberta
- $300 in Manitoba
- $280 in Ontario
- $376 in Saskatchewan
- $190 in New Brunswick
- $206 in Nova Scotia
- $220 in Prince Edward Island
- $298 in Newfoundland and Labrador
The amount you receive also depends on whether you qualify for a rural supplement, have a spouse or common-law partner, and whether you have children.