As someone who supports the carbon rebate and thinks it’s a good policy, I have to admit that Carney is right. Trudeau screwed up the implementation, and now a policy that gives most Canadians more money than they pay is a third rail.
Replacing the tax with something more acceptable, and equally effective seems like a good way forward.
My issue with the carbon tax has always been that consumers are not able to afford to make choices that reduce their consumption. For example, renters are unable to stop using gas heating. Most people cannot afford electric cars, or if they can, the infrastructure to actually charge it (house / garage).
Also, although it’s obvious how much carbon tax I’m paying on my own gas bills, it’s not clear to me how much food prices have gone up as a result of carbon tax on the transportation of that food.
I downvoted your comment because I think it is mostly factual incorrect. However, I don’t want to be too hard on you as it’s also a good example of how the messaging around this policy was a complete failure.
For example, renters are unable to stop using gas heating.
I would guess a large percentage, maybe even the majority of rentals have electrical heat/heat included. And while individual renters can’t choose to switch their heating source at their current homes, making natural gas more expensive has a market effect, makes rentals with alternative heating sources more desirable.
Most people cannot afford electric cars, or if they can, the infrastructure to actually charge it (house / garage).
It’s not an all or nothing, the carbon tax encourages people to drive less. Whether they choose not to travel or go by walking, biking, carpool, public transit, consumers do have choices.
Also, although it’s obvious how much carbon tax I’m paying on my own gas bills, it’s not clear to me how much food prices have gone up as a result of carbon tax on the transportation of that food.
I agree, this definitely isn’t clear, and this is another failing in messaging. At very least, projections of these numbers should have been available right from the start. Instead, hearsay was allowed to thrive with many people believing inflation was due to the Carbon Tax. Recent studies have shown the effect on prices are almost insignificant.
Regardless of whether I can afford to make those choices, I’m not even given the opportunity to choose as I rent. My landlord isn’t the one who will save on utilities or save money by having an EV. You could argue I could move to a more efficient rental, but prices have gone up so much since I moved here I could save 100% of all my energy costs and I’d still end up paying more.
So I agree in that the carbon tax can’t change my usage, it only makes things less affordable.
I think the most reasonable complaint against direct carbon pricing is that people who are living in poverty can’t afford to wait for the next rebate to come in.
It sounds like Carney is just proposing incentives (which seems kinda ineffective for consumers), which wouldn’t have that drawback.
Can’t you just pay it ahead of time?
I think the biggest issue with the carbon tax is that when gas prices go up, people just assume it’s all because of carbon tax.
That sounds like an issue with people, not with the tax.
I’d argue this is an issue with messaging. The government did such a bad job explaining to people what the tax was and how it works. For example, I talked with sooo many people who swore they weren’t getting their Carbon Tax Rebates but just didn’t realise that’s what the CAI payments were.
This is why Trump made such a big deal about getting those Covid cheques with his name on it. Because the messaging and education matters a lot more than the actual policy.
People would 100% remember getting a carbon cheque from Justin Trudeau. No one even knows what the fuck a CAIP is.