Canada’s Liberal Party’s Carbon Tax
The Liberal Party of candidate, the official opposition in Canadian Parliment are set to announce a carbon tax plan. The plan is said to begin with a $10 per ton tax on everything but gasoline. The Liberal Leadership argues that the current 10 cent per leader tax on gasoline, is a sufficient deterent to use and as a result will not be hit with a new carbon tax.
The Liberal proposal calls from the tax to increase from $10 to $40 per ton over a period of 4 years. The money collected from the carbon tax will be used to decrease income taxes on individuals and corporations. The plan also mentions tax credits and other energy assistance to those in poverty or living in Northern Canada and have a greater need to use fossil fuels for survival.
Congrats to the Liberals for the first proposed Carbon Tax in North America and for setting the price at $40, which is the current price of offsets in the European market. With experts predicting the “real” price of carbon is likely between $60 and $120 per ton, at least the Liberals are starting with a realistic number.