If someone has to pay $1000 a year more because of the carbon tax, but get back $1000 through the proposed 'shifting'; where exactly is the incentive for anyone to decrease their carbon use? Or is that not what this tax is supposed to be all about?
Just how exactly are the many thousands of people who pay NO income taxes in this country going to benefit by tax breaks? How about those who do not even have a SIN#? Or are all of these people somehow magically exempt from paying the increased costs that are going to be passed on by business to the consumer as a result of this tax?
If this tax somehow does what it was intended to do and decreases our country's carbon output; wouldn't it be IMPOSSIBLE for the tax to remain revenue neutral? You cannot give back 14 billion in tax credits or through some type of creative tax shifting if there is not 14 billion coming in via the carbon tax. In theory the carbon tax revenue should decrease every year as we produce less CO2, but yet the tax credits are to remain the same or are to even increase to low income earners and those that pay no taxes. How can this ponzi scheme be maintained? Revenue neutral does not only mean that the government will make no money off of it, it also means that it will not cost the government any money as well.
Good luck with that.
And lastly, is it still part of the grand plan for a Liberal government to purchase carbon credits for us to reach our Kyoto targets?