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Originally Posted by Weitz
How does this help people with the cost of living and not hurt the cost of living?
The discussion about emissions is irrelevant. Canada isn’t convincing anyone to do anything.
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It doesn’t it will make everything more expensive and will depend what they do with the Carbon Tarrif money. In theory it could be wealth transfer from polluting industries to consumers through modification of the industrial carbon system where he talks about consumers being able to sell credits to industry
In the detail section they just state this
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In the coming weeks, we will outline major additional economic measures to strengthen the economy and ensure households are immediately better off, following the removal of the rebate.
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So I suspect the tax as outlined is negative from a consumer standpoint. We will see what rebates look like.
So when I say it’s a good plan I think it’s effective at reducing emissions while maintaining competitiveness for Canadian businesses. It effectively places Carbon taxes on all goods that are hidden from the consumer. If they are rebated back effectively it will minimize economic drag.
But it certainly doesn’t help with cost of living at best it’s fairly neutral just like the existing Carbon tax. And the bigger risk is that the Carbon Tarriff triggers trade wars
It’s just politically foolish to claim you are axing the Carbon tax by replacing it with a far broader carbon tax.