The carbon tax rebate will make you money?! Really?
A big part of the sell around the federally mandated carbon tax that came into effect for four provinces on April Fool’s Day is that it will somehow be profitable for Canadians.
It’s the carrot the Liberals have been dangling to get Canadians to buy in to this whole scheme in the first place and we’ve heard this message on repeat.
“Starting today, we’re making big polluters pay, and giving the money right back to Canadians – to keep our communities clean & healthy, and make your life more affordable,” Prime Minister Justin Trudeau posted to social media.
A graphic the Liberal’s have been sending around claims the tax “reduces pollution and puts more money in your pocket”.
More money?! As in, more than you had before you were dinged by the tax? That’s quite something.
But how is it going to happen? How do you prove it? Good question.
The way they talk about it and then bandy about the phrase “revenue neutral” it makes it sound like if you shell out, say, $782.67 in carbon tax fees throughout any given calendar year then you will get a full rebate of $782.67.
That’s not how this work. Not at all.So how do they figure out how much money you should get back? They don’t.
The Climate Action Incentive, as they’re calling it, isn’t a complicated calculation at all. It’s just one line on your income tax return, Line 449.
To claim it, you need to complete a one-page Schedule 14 on your tax return. (I’m now going to use the Ontario numbers below as an example, although they differ from province-to-province.)
An individual then claims the basic amount of $154. If you’re married, you can claim a spouse to add $77. If you have kids, you get to add $38 per kids. If you live in a rural area, you increase your total rebate by 10%.
This is where the Liberals are getting the magic number of $307 for the average family of four that they’ve been shopping around.
Here’s the thing though. The credit is the same for everyone.
If you’re struggling to make ends meet, you’ll get the $307. But if you’re pulling in a big six-figure income, you’ll also get the $307. It’s the same for everyone.
And what does the rebate number have to do with how much you the individual has shelled out in carbon tax cash? It doesn’t. There is absolutely zero accounting done to determine how much you’ve actually paid in carbon pricing.
It could be costing you less than $307 (which is what the Liberals hope you’ll conclude) or it could be way, way more. The numbers they’re working with are government estimates and they haven’t disclosed the details of how they came to those figures.
Yes, we know the tax is going to raise the price of gas by about 4 cents per litre. What we don’t know is how other emitters and producers are going to respond to their increased costs and to what degree they will pass them off to the consumer.
How then can you figure out on your own if this rebate actually has left you better off? You can’t.
When the government first announced they’d be giving people their money back and then some, it left the impression that we’d somehow be tallying our receipts, like maybe from some carbon tax line item at the bottom of our bills alongside the other taxes, and then sending in the total to the taxman. That’s not how it’s happening at all.
The Liberals have made quite the claim with the carbon tax. A claim that we have absolutely no way of verifying.https://torontosun.com/opinion/columnis ... able-claim
First of all, even if everyone got back all the extra costs of Trudeau's carbon cash grab, how is that a disincentive to use less heat and gasoline. It's like refunding every dollar people pay in sin taxes on booze and cigarettes that are there in the first place to discourage smoking and drinking.
More importantly, Trudeau and McKenna are lying their asses off about everybody getting their carbon tax money back. A family of four living in a bedroom community of Toronto with a combined income of $120 will get $307 back. That would be likely less than half of what the carbon tax would cost them in the first year. And the tax goes from $20 to $50 per tonne by 2022. Everything about Trudeau's carbon cash grab are lies.