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Originally Posted by Canehdianman
Its not really a carbon tax if 60% of families are expected to get a refund.
Maybe cut the tax rate by 50% and have everyone pay for it? Not sure I need to subsidize someone's gas costs.
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Here's what Andrew Leach who was on of the panelist of the Climate Change Panel had to say on twitter.
Quote:
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Andrew Leach
@andrew_leach
Most frequently asked Q on #ableg carbon plan was why do the low- and mid-income credit and/or does it not offset the impacts. 1/n
Short answer on rebates is to guard against regressive impacts by reducing the "income effects" of the carbon tax. 2/n
Point of carbon price is to shift relative prices, not reduce purchasing power. Lump-sum rebates preserve GHG price substitution effect.3/n
With or w/out rebates, consumers will still face effective $30/t price at the margin, which provides reward/incentive to reduce GHGs. 4/n
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