Canada’s Carbon Tax went up on April 1. That increase has created a lot of conversation—very little of it productive. In today’s post, I look past the political shenanigans. Read on for some facts about how Canada’s Carbon Tax works and how it financially benefits the vast majority of Canadians, despite what special interest groups and climate deniers want you to think.
Who are these “ordinary people”?
The most recent increase to Canada’s carbon tax created quite an uproar with people who claim to be fighting back in the interest of “ordinary people”. My social media feeds are full of negativity, most of it planted by individuals and groups who will do anything to berate our current government.
I prefer facts to hysteria, so I decided to do some research. As I started to do my homework, I saw a Facebook post that said, “You can’t tax millions of people into poverty to change the weather.” This annoyed me for two reasons.
First, the carbon tax is about addressing long-term climate change, not day-to-day weather. (Learn more about that in It’s cold outside – The difference between weather and climate.) More importantly, though, is that the people making all the noise refuse to acknowledge that the low-income people they claim to represent actually benefit financially from the Carbon Tax.
Let’s look at some facts about Canada’s Carbon Tax.
Why do we have a carbon tax?
Fossil fuels account for over 75 per cent of global greenhouse gas emissions and nearly 90 per cent of all carbon dioxide emissions. (Source: UN) To slow the environmental, health and economic impacts of climate change, we must reduce our dependence on fossil fuels and shift to clean energy sources.
The goal of the carbon tax is to encourage the adoption of clean energy by increasing the costs of burning fossil fuels. In short, those who consume more, pay more.
Is the carbon tax to blame for inflation?
Critics of the carbon tax suggest it’s making life unaffordable for Canadians. It’s a political ploy!
It’s no secret that inflation is making it increasingly difficult for many to make ends meet. The 2020s have been a period of record inflation around the world, thanks largely to supply chain issues caused by the pandemic. Wars in the Ukraine and middle east haven’t helped. And housing prices are out of control.
CBC News reports the carbon tax contributed just 0.15% to Canada’s inflation rate—that’s just 1/54th of the record high inflation we saw in 2022.
How much did the carbon tax go up on April 1?
On April 1, the carbon tax increased to $80 per tonne. This added about three cents to the price of a litre of gasoline. In comparison, an increase in mid-April driven by wholesale oil prices added a whopping fourteen cents to the price of a litre gasoline. (Source: City News)
If you feel you’re paying too much for gas, consider who profits the most from highter gas prices. It’s the oil industry! They’re also behind much of the anti-carbon-tax lobby. It’s in their best interest to turn you against the carbon tax so they can continue to reap record profits.
Does the carbon tax hurt lower income Canadians?
It shouldn’t come as a big surprise that individuals with higher incomes produce more emissions than lower income individuals. In fact, the richest 10% of the world’s population—those earning more than $54,000 a year—produce 40 times the emissions of the poorest 10%, adding up to half of global emissions. (Source: The Guardian)
Canada’s carbon tax aims to make the wealthier pay proportionately for their emissions. The David Suzuki Foundation reports the government returns 90 per cent of the money collected to households. These rebates result in eight out of ten households getting back more than they’re paying.
So the claims of taxing people into poverty just don’t hold up.
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Does carbon pricing work?
Ultimately, the big question we should all be asking is whether carbon pricing is making a difference in reducing emissions and slowing climate change.
Canada’s Ecofiscal Commission cites several examples from around the world of carbon pricing reducing emissions and changing behaviour, including British Columbia which has had a carbon tax since 2009.
I realize carbon tax critics won’t bother to read this. They will continue to cry, “Axe the tax!” and spread lies and half-truths to elicit an emotional reaction. Don’t be fooled. The carbon tax is yet another example of why it pays to look beyond the clickbait and do your homework.
And perhaps we need to ask them what they would suggest as an alternative. Because continuing to burn fossil fuels at an alarming will hurt more than our wallets.
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Love your line about liking facts more than hysteria. Thanks for the facts!
Honestly, Wynne, that’s how these extremists and naysayers operate. They try to elicit an emotional response and people don’t bother to think for themselves and check facts. It’s so frustrating.
As you have mentioned there is a big difference between climate and weather. This is one of the distinctions we all need to read up on. And there is no other time to start slowing down the carbon load. Now is the time. There will always be complainers.
Sadly, in Canada the complainers have the support of one of our major political parties that is likely to win our next general election. I fear our progress will be rolled back with dire consequences for all.
It sounds like Canada is taking global warming seriously by applying a carbon tax. I wish there was more education about such matters.
The amount of misinformation about the carbon tax is so frustrating. Sadly, I fear it will be reversed after our next federal election. The oil lobby in this country is powerful.
This is really interesting, and I think it is something that should be considered in more places.
I think it is a good thing too, Caroline. But like a lot of things related to climate change, a vocal minority is making a lot of noise and spreading misinformation. It’s very frustrating!
Thank you, Michelle…I feel like…at this point…every option and avenue should be explored!
You’re right, Vicki. But sadly the anti-carbon-tax people refuse to change their behaviour despite all the evidence that we’re doomed if we don’t. It’s very frustrating.
I’m with you…and grateful to you that you continue to raise the issues. It’s important – just hard to see the impact. xo, Michelle! 💕
The level of greed, stupidity and willful ignorance that has surrounded this topic for over 30 years is truly stunning.
I think greed sums it up nicely, Todd. Sigh.
Excellent article – thanks for writing it! I recently learned that the US had a carbon tax included in the first budget of the Clinton administration- back in the 90’s!! That budget passed one house of Congress but failed in the other. And since then, a US carbon tax has seemed like a pipedream 😕
That’s fascinating, Todd. I think that’s one of the things that frustrates me the most about climate change. Solutions exist and we know what they are, yet there is still so much ignorance and misinformation out there. When I saw the meme about taxing millions of people into poverty to change the weather, I wanted to throw my iPad across the room. I don’t know how we stop that kind of crap. I didn’t even post this on my Facebook page because I don’t have the energy to fight these people any more. They just don’t want to hear anything factual.