OTTAWA – After the Parliamentary Budget Officer concluded most Canadians will come out behind on the carbon tax, a Liberal MP wants the PBO to take another look.
Parliamentary Budget Officer Yves Giroux released a report late last week that found the cost of the Liberals’ carbon tax would not be revenue neutral for most families. While he found most Canadians would receive more in rebates than they pay in carbon taxes, the economic impact of the tax would drive down wages and raise costs.
“We estimate that most households will see a net loss, paying more in the federal fuel charge and GST, as well as receiving lower incomes, compared to the Climate Action Incentive payments they receive,” Giroux wrote.
The Liberals have long argued that most Canadians come out ahead on the carbon tax because of the quarterly rebate payments. The carbon tax applies to purchases for fuel and natural gas in Ontario, Manitoba, Yukon, Alberta, Saskatchewan and Nunavut. Other provinces have developed their own systems and are not subject to the tax.
Guelph MP Lloyd Longfield wrote an open letter to Giroux on Wednesday asking him to take a broader perspective, arguing the PBO wasn’t factoring in the cost of climate inaction.
“In light of the overwhelming body of evidence, including your own analysis, that climate change is bringing huge costs to bear on Canadians, I would ask that you launch a new study that integrates both sides of the climate ledger into your assessment,” Longfield wrote.
Longfield pointed out that the PBO submitted a report last fall that found climate change was already costing the Canadian economy considerably. That report found rising temperatures had already cost the economy $20 billion as of 2021.
Longfield said in his open letter he was surprised that the PBO is only looking at one part of the equation.
“I was shocked, when I read in your distributional assessment of the federal fuel charge that the PBO analysis ‘does not attempt to account for the economic and environmental costs of climate change.'”
He argued the carbon tax can reduce a family’s expenses if it encourages them to install a heat pump for their home instead of an oil furnace, or buy a zero emission vehicle, which comes with fewer maintenance costs.
“To ignore the impact of these developments does a disservice to the public debate about how best to tackle climate change,” he said. “There is no more pressing public policy issue than a fair and fully informed assessment of the costs, benefits and liabilities of climate change action and inaction, which is why I am requesting a new study to consider all sides.”
Twitter:
Email: rtumilty@postmedia.com
Post a Comment