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For Your Information Trudeau Government's Carbon Sales TaxThe Trudeau government is arguing that climate change is a matter of national security. It says that since climate change affects all of us, it is in the national interest to do something, therefore, the federal government can impose a carbon tax countrywide. The Saskatchewan government has launched a court challenge to the federal government's authority to impose a federal carbon tax saying this infringes on provincial responsibility. In its court factum defending its effort to impose a carbon tax on Quebec, all provinces and territories, the federal government says its power comes from the "peace, order and good government" clause, Section 91 of the Constitution Act, 1867. The Liberals say this allows the federal government to step in and do something nationally when it includes a national interest component to any policy. "[Greenhouse Gas (GHG)] emissions are a matter so vital to the interest of the nation as a whole that GHG emissions must be dealt with on a national basis," the government court factum argues. "The Attorney General submits that the Court should not be swayed by arguments about the importance of climate change in today's world," says Saskatchewan's filings. "Legislative jurisdiction under our Constitution is not determined by the importance of the matter." Tyler Dawson in the National Post writes in part: "In brief, this case is about which level of government has jurisdiction to regulate carbon emissions. Or is it shared jurisdiction where the federal government can impose a tax and provinces are free to have carbon policies too? And, if it is the federal government that has jurisdiction, how does the Constitution grant this power? "Why do the Liberals think they have the power to impose carbon prices on the provinces? "A co-operative approach would be preferable, but Saskatchewan says the federal approach is the opposite of co-operation because there's no ability to refuse to participate. 'Nothing less will satisfy the principle that provinces are sovereign and autonomous within the realms of their jurisdiction and that neither level of government is subordinate to the other,' it says. "The federal government disagrees, naturally. 'Federal jurisdiction to legislate as a matter of national concern does not shift the balance of legislative power, but rather provides Parliament with a flexible tool, reflecting the scale of the problem,' it argues. "The federal government's lawyers argue that the carbon tax isn't a tax. It's, rather, a regulatory [measure] meant to change behaviour by compelling people to use less carbon. It says that in order for something to be a tax, its primary purpose must be to raise revenue."
Excerpts from Federal Government DocumentsIn October 2016, the Prime Minister announced the Pan-Canadian Approach to Pricing Carbon Pollution (the federal benchmark), which gave provinces and territories the flexibility to develop their own carbon pollution pricing system and outlined criteria all systems must meet to ensure they are stringent, fair, and efficient. The federal government also committed to implementing a federal carbon pollution pricing system in provinces and territories that request it or do not have a carbon pollution pricing system that meets the federal benchmark. Greenhouse Gas Pollution Pricing Act, adopted on June 21, 2018, (two aspects): - A trading system for large industry, known as
the
output-based pricing system Provinces and territories had until September 1, 2018, to outline their plans. Provincial systems will apply in British Columbia, Alberta, Quebec, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador. The governments in these jurisdictions are either already implementing or are on track to implement carbon pollution pricing systems that meet the federal benchmark. The federal pricing system for large industry will apply starting in January 2019, in Ontario, Manitoba, New Brunswick, Prince Edward Island, and partially in Saskatchewan. The federal fuel charge will apply starting in April 2019, in Saskatchewan, Ontario, Manitoba, and New Brunswick because those governments have not developed a system to price carbon pollution, which meets the federal benchmark. The Government of the Northwest Territories is planning to implement a system that meets the federal benchmark, on July 1, 2019. The federal carbon pollution pricing system will apply in Yukon and Nunavut. The federal system will start applying in the territories on July 1, 2019, to ensure alignment across the territories. All direct proceeds from pricing carbon pollution under the federal system will be returned to the jurisdiction in which they were collected. Provincial and territorial governments that have committed to addressing climate change by voluntarily adopting the federal system will receive these proceeds directly from the federal government and can decide on how to use them. The federal carbon pollution pricing system is not about raising revenues. It is about recognizing that pollution has a cost, empowering Canadians, and encouraging cleaner growth and a more sustainable future. [TMLW editorial comment: This issue of cost and value related to pollution must be challenged. Objective economic value arises from the work-time of the working class engaged in productive work within the socialized economy transforming natural resources into use-value. Through a sales tax, the government takes value from the economy for whatever purpose it decides. The sales tax lowers the amount of economic value available to the working people. It says "the majority of direct proceeds from the regulatory charge on fuel" will be returned to the people directly with the rest going into general infrastructure. This begs the question as to the purpose of the carbon sales tax, which from what the government is saying will be taken with one hand and returned with the other. What does this have to do with changing the direction of the economy so that it does not harm the environment? To do so requires depriving those in control of the socialized economy of the power to damage the economy.] For provinces that have not committed to pricing carbon pollution (Ontario, New Brunswick, Manitoba, and Saskatchewan), the federal government proposes to return the majority of direct proceeds from the regulatory charge on fuel, in the form of Climate Action Incentive payments, directly to individuals and families in the province of origin. Most households in those provinces will receive more in Climate Action Incentive payments than the increased costs they incur from carbon pollution pricing. This incentive will benefit those who adopt practices that lead to less carbon pollution. Under the proposed approach, individuals will receive the full amount of the Climate Action Incentive payment for the year, after having filed their tax returns (starting in early 2019). This amount will include a 10 per cent supplement for residents of small communities and rural areas, in recognition of their specific needs. In Ontario, for example, the baseline amount for a family of four will be $307, in 2019. Climate Action Incentive payment amounts will be increased annually to reflect increases in the price on carbon pollution, under the federal carbon pollution pricing system. The Minister of Finance will make announcements on Climate Action Incentive payment amounts once a year, reflecting the increasing price on carbon pollution and updated levels of direct proceeds. In Ontario, for example, the baseline amount for a family of four is expected to be $718, by 2022. In each province that has not committed to pricing carbon pollution, those direct proceeds from the federal regulatory charge on fuel, which are not returned directly to individuals and families through Climate Action Incentive payments, will be earmarked to provide support to schools, hospitals, small and medium-sized businesses, colleges and universities, municipalities, not-for-profits, and Indigenous communities in the province. Pricing carbon reduces pollution at the lowest overall cost to businesses and consumers. A well-designed price on carbon pollution provides an incentive for climate action and clean innovation while protecting competitiveness. Carbon pollution pricing is efficient and cost effective because it allows businesses and households to decide for themselves how best to reduce pollution. Carbon pollution pricing stimulates innovation, which helps Canadian businesses compete in the emerging low-carbon economy. Putting a price on pollution creates an incentive to innovate, develop, and adopt clean technologies and processes. (www.canada.ca/en/services/environment/weather/climatechange.html)
Wikepedia Entry on Carbon Taxes (Excerpts)A carbon tax is a tax levied on the carbon content of fuels. It is a form of carbon pricing.
Carbon is present in every hydrocarbon fuel (coal, petroleum, and natural gas) and converted to carbon dioxide (CO2) and other products when combusted. [...]
CO2 is a heat-trapping "greenhouse" gas [...]
Carbon taxes can be a regressive tax, in that they may directly or indirectly affect low-income groups disproportionately. [...]
Most environmentally related taxes with implications for greenhouse gas emissions in OECD countries are levied on energy products and motor vehicles, rather than on CO2 emissions directly. [...]
In 2018, efforts by French president Emmanuel Macron to implement a carbon tax led to mass protests by citizens, which forced the government to again suspend the tax. [...]
On December 4, the French government suspended the carbon tax, justifying the suspension because, as French Prime Minister Édouard Philippe said, "No tax is worth putting in danger the unity of the nation." [...]
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