The Green Shift

The Liberals have unveiled their Carbon Tax proposal.  It is revenue neutral which means any increase in taxes on coal, natural gas and petroleum will be offset by lower income taxes and financial support for those who make so little they pay no tax.  There is an existing federal tax on gasoline so there would be no additional taxes on gas.  The tax they propose is fairly modest increasing $10 per tonne per year for 4 years.  After 4 years it means a 7 cents a litre increase on diesel.  In the Liberal plan the price increase on natural gas is more substantial at $2 a gigajoule. 

Now that gasoline is $1.40 a litre we are finally seeing people change their habits.  I’m not sure how much an additional 7 or 12 cents a litre on fuel is going to add to the change but it is a step in the right direction. 

The Conservative plan for reducing green house gas emissions will increase the cost of fuel and electricity but without any mechanism to return any of that money back to the Canadian people. 

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