Uncertainty still permeates pending carbon tax
New information consequential for the territory’s march toward a carbon tax and a subsequent revenue rebate was made available to the public Wednesday.
New information consequential for the territory’s march toward a carbon tax and a subsequent revenue rebate was made available to the public Wednesday.
But significant questions remain unanswered, with the territorial government awaiting further clarity from Ottawa, and Yukoners looking for the same from their government.
The federal ministers of Environment and Finance announced Wednesday that jurisdictions adopting the federal carbon pricing backstop will see it come into effect in the fall of 2018.
The Yukon government has confirmed it will not be implementing its own carbon pricing mechanism, and as such the federal backstop will apply sometime in the final months of next year.
At that time, carbon pricing is expected to sit at 2.33 cents per litre of gasoline, rising to around 11.63 cents per litre in 2022.
But what of the millions of dollars in annual revenue the federal government is expected to collect and hand back from carbon taxation in the Yukon, a revenue figure predicted to grow to $25 million in 2022?
The Yukon government hasn’t determined how it will deal with carbon tax revenues yet, beyond a commitment to its return to Yukoners and Yukon businesses.
There are some outstanding questions the territory is waiting on Ottawa to answer, explained Carol MacLellan, director of business and economic research for the Department of Finance.
One of these is the exact implementation date for carbon pricing.
“We know it’s going to be fall 2018, but that still leaves a lot of room for potential dates,” MacLellan said.
Another yet-to-be determined element is if the Yukon will see special considerations in its carbon pricing scheme based on remoteness and uniquely northern characteristics.
The federal government is currently undertaking a study to assess the impacts of carbon pricing in the territories, but MacLellan said she couldn’t speak to its anticipated completion date.
Other missing pieces are how and when carbon tax revenues will be transferred back to the territory – answers that will shape what the Yukon’s rebate mechanism looks like.
There are a number of ways the territory could return the carbon levy to citizens and industry, from cheque/direct deposit to a tax credit to reduced income tax rates.
The government is considering all of them, according to MacLellan. The former was the most popular option among respondents to a Yukon government survey.
Released yesterday, this information is gleaned from YG public engagement feedback on the territory’s carbon price rebate.
“The feedback will be fully considered as we move forward with the design of a rebate mechanism that will best serve Yukon,” Premier Sandy Silver said in a statement Wednesday.
Fifty-five per cent of respondents to the government’s online survey said they would prefer to receive the carbon price rebate by way of direct payment (cheque or direct deposit).
Twenty-three per cent indicated a tax credit to individuals and businesses as their most favoured option.
Twenty-two per cent favoured a reduction in income tax rates.
While responses to the government survey have utility, they should not be taken as representative of the opinions of the Yukon’s population as a whole.
The government reports 665 responses to the survey were completed. It was available online between Aug. 16 and Sept. 13 of this year.
When asked about the importance of four groups of Yukoners receiving a higher carbon price rebate than others, 59 per cent of respondents indicated that it was very or somewhat important that low-income Yukoners receive a higher rebate.
They were followed by 51 per cent who indicated it was very or somewhat important for seniors, 51 per cent for rural Yukoners, and 47 per cent for Yukoners with children.
An open-ended question asked about other groups that should receive a higher rebate.
Business owners, individuals or businesses that make low-carbon investments, and individuals who live in off-grid or remote communities were most frequently cited.
Other survey responses analyzed show that some respondents felt the rebate program should not become a mechanism for wealth redistribution.
Others suggested the rebate should be equal for all Yukoners, while some respondents said it should be tied to the amount of carbon tax paid.
The “What we heard” document also acknowledges that “feedback provided through the survey and the information sessions did not provide one clear message to government on the design of a rebate program, as opinions on the subject are as varied as Yukoners themselves.”
During public consultation on the rebate, the government also hosted targeted information sessions with First Nations organizations and governments, municipalities and industry.
The “What we heard” section on these sessions demonstrate that Yukoners are asking questions to which answers are required.
“The impact of carbon pricing on the cost of living was raised as a concern, particularly the impact on the middle-class and lower-income Yukoners,” the document reads.
MacLellan told the Star that while she isn’t sure and it’s still “early days,” she imagines the government will want to take advantage of some kind of impact analysis that looks at how carbon pricing will affect the territory’s population.
The official Opposition has been pushing hard for the government to conduct such an analysis.
“Particularly if they were to choose, for example, directing a higher proportion of the rebate to rural Yukoners, or to low-income Yukoners, or something like that, I think we’d want to understand what that would look like,” MacLellan said.
The information sessions also saw questions about how the carbon tax rebate will interact with social assistance programs. For example, will the rebate be deducted as income for those Yukoners on social assistance?
“Too early to tell, I think,” MacLellan said, “but that would have to be figured out as the rebate mechanism is designed.”
First Nations representatives wanted to know about whether the “jurisdiction of origin” the federal government has promised carbon tax revenues will return to includes First Nations governments.
“That’s certainly something the federal government could choose to do directly too, but I don’t have any clarity on that at the moment,” MacLellan said.
It appears that Yukoners, like their territorial government, will have to wait for these answers from Ottawa.
“Once details are clear from Canada ... the Yukon government will be able to proceed with the design of a rebate mechanism,” the public engagement document reads.
“A clear message was heard from Yukon stakeholders and First Nations that further conversations would be welcome on this topic.”
Comments (4)
Up 1 Down 0
Juniper Jackson on Dec 28, 2017 at 2:47 pm
2019 is coming.. and hopefully it will be the end of Trudeau and the 181 in his caucus that failed to rein him in... While so many are on the edge of hardship, and many not making it at all, Trudeau gave himself a hefty income raise..to $340,000 a year, and a cool raise for Larry too. Trudeau was found guilty of bribery in 4 counts malfeasance and the caucus took their pay increases and did nothing. The first sitting PM to be found guilty of ethics violations..Trudeau is downplaying it..but really, its huge and the country should be demanding more than a 'Oh really? I'm sorry'
The carbon tax has never been about the environment, it's always been about the money. The tax season is coming and that revenue is already spent. Canada is broke. Notley just announced she is borrowing another 75-85 billion, just to make ends meet.. Notley, like Trudeau is a very heavy spender.. "Notley has spent $9 million taxpayer dollars to sell the single largest tax hike in Alberta history to Alberta taxpayers. She’s using your own money to tell you she needs more of your money. I can’t even make this stuff up!" The provinces and federally, Canada owes 1.3 trillion dollars.. where is that going to come from? It's going to come from every working person. CPP? Trudeau already robbed that fund of billions to send to Myanmar, Mumbai, for them to build houses, Canadian seniors could face cut backs to pensions if Trudeau keeps stealing from the CPP..(which is supposed to be at arms length from Government with an independent board..but isn't) Trudeau has cut back or eliminated all sources of revenue such as the pipelines..
How is Canada going to pay its bills? More taxes of course.. the carbon tax is a devious tax..the reality is it's another sales tax.. so, it's a tax on a tax..Does Trudeau stop throwing money away? No.. Like Notley, he borrows more.. at this date, IF he stopped now, our deficit would be paid off in 2054.. The last piece of bad, bad news from Trudeau? He has passed legislation that will allow banks to take your bank accounts, and give you shares in the bank, if banks face the same financial collapse as 2007 and 08, the federal government will not bail them out.. we will.. http://debatepost.com/2016/08/23/warning-trudeau-has-allowed-banks-to-seize-your-money-if-economy-fails/
The government badly needs the carbon tax dollars..
Up 1 Down 0
ProScience Greenie on Dec 28, 2017 at 11:10 am
Apparently all the branches of the US military are spending tons of taxpayers money on dealing with potential negative of this global warming lie detector. So are all the big US oil companies. One can only conclude that the entire military industrial complex and Big Oil have been comprised and in on the scam. No doubt the socialist Obama set that up before leaving office.
The rot runs deep but thank god we have Donald Trump at the helm and with the help his partner Vladimir Putin we can be sure that he'll fix things up so we see more hydrocarbons being burned to prevent the global cooling effect a vast majority of real scientists are warning about.
Up 3 Down 0
lie detector on Dec 26, 2017 at 3:24 pm
This is the greatest scam the banking and government elite have conjured up in decades. Wake up people... this is a long drawn out psychological manipulation game that is intended to make people give up and think that there is impending doom.
Globally at this point cooling has began and it is in large part determined by the output of the sun - we are entering a grand solar minimum - this is already evident in countless crop failures due to early frost etc around the world so get ready for hyperinflation, particularly in food costs in the near future.
No raw data demonstrating human caused warming has ever been released - it is a con to push for higher taxes and more slavery of the population. If everyone starts feeling guilty for alleged carbon production - whether by farts or combustion engines or keeping pets then they are more likely to accept more THEFT from a bunch of fools.. oh, sorry, tax...I mean, EXTORTION.
The media is all bought and paid for by the banking and governing elite. Use your brains for critical thought and not drinking the koolaid of marxist, socialist and communist ideologies that are gaining ground in Canada every day: Wealth for the rulers and equal poverty for everyone else.
Up 7 Down 0
ProScience Greenie on Dec 21, 2017 at 3:16 pm
Very concerned about AGW on a global scale but this carbon sin tax will do nothing to deal with that. Most of the cash will go to administrating it and a few projects that will be mostly about green optics and the rest into general revenues and at the end of the day GHG emission won't really drop. Plus the poor and lower middle class will be the most hurt and it will be business as usual with high GHG emission for those more well off.
So how about we streamline government to make it less bloated and more efficient and take the money saved and put it into cleaner energy generation. Would do more good for the planet in the short and long term.