As the rhetoric around carbon pricing heats up, I’ve heard people complain that the federal government didn’t provide any information about the costs to households – not that I’m sure it was really their place to do so, given that what they are imposing is a floor price, and that provinces will then be forced to turn around and design the mechanisms they want to use and the kinds of rebates they will turn around and give to households, and given that each province is different, they may not want to give any hard and fast numbers. That, and doing so will immediately make opposition parties – and in particular the Conservatives – turn around and go “Aha! It’s a tax on everything!” which isn’t the message that the government is trying to send (aside from the fact that hey, a price is a market mechanism that lets people make their own choices and drives businesses to innovate).
Into this vacuum has come the Canadian Taxpayers Federation, which declared that carbon taxes will cost households an extra $2500 per year, and the Conservatives immediately grabbed onto this number and treated it like gospel, and have been wielding it like a cudgel in the days since. Enter economist Trevor Tombe, who has applied a bit more rigour to the numbers, and lo, some actual analysis and maths shows that even at the current maximum projection of $50/tonne price, that for the average household, it will be closer to $1100 per year (with $600 in direct costs and $500 in indirect costs), and from there, the provincial governments can decide how they’re going to recycle the revenues.
The moral of the story – look for a credible analysis before you light your hair on fire. And no, the CTF may not be the most credible source given that they have a particular agenda in mind and haven’t really shown you their math in the way that Tombe did. Meanwhile, here’s Colby Cosh to debunk some of the other narratives floating around. Enjoy.
That’s pretty strong language for “politicians deciding what to tax”, I think. & a carbon price is the opposite of a “top-down initiative”. https://t.co/xckKukUX5z
— Colby Cosh (@colbycosh) October 10, 2016
Because there’s minimal prior allocation of energy use. You can use as much as you want; you’re being taxed on the carbon, not the wattage. https://t.co/x7tg5r1Pjo
— Colby Cosh (@colbycosh) October 11, 2016
(That should really be “megawatt-hour”. Sorry.) @PardyLarry
— Colby Cosh (@colbycosh) October 11, 2016