Sunday, May 15, 2022

CARBON TAX REBATE CHEQUES FALL SHORT

  The good news is that starting July 15 and four times annually after that, individuals and families living in these provinces are going to receive tax-free cheques, or direct deposit payments if they prefer, from the Trudeau government under its Climate Action Incentive Payment Plan.
Previously the rebates were a refundable tax credit, claimed on income tax returns.
   The bad news is that, according to Yves Giroux, Parliament’s independent, non-partisan budget officer, most people receiving these cheques (60%), will pay a lot more in annual carbon taxes than they get back in carbon tax payments, and will do so every year up to 2030, at least.
   In 2024, Giroux says, 80% of Ontario households will be paying more in carbon taxes than they receive in rebate cheques, with the same thing happening in Alberta in 2028.

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