Goodale doesn't think $10,000 - $100,000 of extra tax is a big deal for a family farm I guess....
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Province not buying carbon tax being 'revenue neutral'
D.C. FRASER, REGINA LEADER-POST
More from D.C. Fraser, Regina Leader-Post
Published on: October 4, 2016 | Last Updated: October 4, 2016 5:13 PM CST
Regina-Wascana MP Ralph Goodale GRAHAM HUGHES / THE CANADIAN PRESS
Saskatchewan’s government refuses to believe a revenue neutral tax can exist.
The federal government announced Monday it would be establishing a “floor price†of $10 a tonne on carbon pollution in 2018. That price will rise to $50 a tonne by 2022.
Premier Brad Wall and his government came out swinging following the announcement, arguing it is a tax on the energy industry, which is already struggling.
In an effort to stop such criticisms , the federal government pointed out again and again that the carbon pricing plan would be revenue neutral for Ottawa, and that all the revenues would stay in the provinces where they are generated.
Saskatchewan’s argument: That is impossible.
“We have no idea how the federal government intends to make the carbon tax revenue neutral — because there is no such thing as a ‘revenue neutral’ tax … or all taxes would be considered revenue neutral,†said a spokesperson from the premier’s office on Tuesday. “Revenue neutrality means that carbon intensive huge job-creating industries like oil and gas, mining and agriculture — bear the brunt of the tax. If you lose your job, income tax reductions don’t really matter.â€
The federal government counters that the revenue generated from the tax will stay in Saskatchewan and can be redistributed to the people paying it as a result.
Regina-Wascana MP and federal Minister of Public Safety Ralph Goodale told reporters in Ottawa that “every single penny remains in Saskatchewan and under Saskatchewan’s control.â€
To that, the province said in a statement, “the feds are suggesting giving the money back in a different form — so why have the tax in the first place? It will not change any behaviour that lowers emissions. It makes no sense.â€
Goodale said the province can have control of how the carbon tax will be collected.
The province is estimating the federal plan will cost the average family $1,250 a year when fully implemented, while farm families will pay about $10,000 and some large farms could pay closer to $100,000.
For the oil and gas sector, the province says it will cost more than $700 million. For the electricity sector, more than $750 million.
It’s still unclear how the province arrived at those figures. The official said they are accurate and were done from an analysis between various government ministries.
“Instead of focusing on fiscal instruments like carbon taxes, we believe governments should be investing in renewables and technology that bring about meaningful reductions in GHG’s around the world,†said the spokesperson in a statement.
The provincial government isn’t the only entity in Saskatchewan raising alarm bells over the impending carbon tax.
In a statement Tuesday, an Evraz North America spokesperson said, “While addressing climate change is critically important, we must be very careful at this time to not take action that could further weaken the industry and have a negative impact on our employees and business.â€
dfraser@postmedia.com
Twitter.com/dcfraser
http://leaderpost.com/news/politics/province-not-buying-carbon-tax-being-revenue-neutral?platform=
Province not buying carbon tax being 'revenue neutral'
D.C. FRASER, REGINA LEADER-POST
More from D.C. Fraser, Regina Leader-Post
Published on: October 4, 2016 | Last Updated: October 4, 2016 5:13 PM CST
Regina-Wascana MP Ralph Goodale GRAHAM HUGHES / THE CANADIAN PRESS
Saskatchewan’s government refuses to believe a revenue neutral tax can exist.
The federal government announced Monday it would be establishing a “floor price†of $10 a tonne on carbon pollution in 2018. That price will rise to $50 a tonne by 2022.
Premier Brad Wall and his government came out swinging following the announcement, arguing it is a tax on the energy industry, which is already struggling.
In an effort to stop such criticisms , the federal government pointed out again and again that the carbon pricing plan would be revenue neutral for Ottawa, and that all the revenues would stay in the provinces where they are generated.
Saskatchewan’s argument: That is impossible.
“We have no idea how the federal government intends to make the carbon tax revenue neutral — because there is no such thing as a ‘revenue neutral’ tax … or all taxes would be considered revenue neutral,†said a spokesperson from the premier’s office on Tuesday. “Revenue neutrality means that carbon intensive huge job-creating industries like oil and gas, mining and agriculture — bear the brunt of the tax. If you lose your job, income tax reductions don’t really matter.â€
The federal government counters that the revenue generated from the tax will stay in Saskatchewan and can be redistributed to the people paying it as a result.
Regina-Wascana MP and federal Minister of Public Safety Ralph Goodale told reporters in Ottawa that “every single penny remains in Saskatchewan and under Saskatchewan’s control.â€
To that, the province said in a statement, “the feds are suggesting giving the money back in a different form — so why have the tax in the first place? It will not change any behaviour that lowers emissions. It makes no sense.â€
Goodale said the province can have control of how the carbon tax will be collected.
The province is estimating the federal plan will cost the average family $1,250 a year when fully implemented, while farm families will pay about $10,000 and some large farms could pay closer to $100,000.
For the oil and gas sector, the province says it will cost more than $700 million. For the electricity sector, more than $750 million.
It’s still unclear how the province arrived at those figures. The official said they are accurate and were done from an analysis between various government ministries.
“Instead of focusing on fiscal instruments like carbon taxes, we believe governments should be investing in renewables and technology that bring about meaningful reductions in GHG’s around the world,†said the spokesperson in a statement.
The provincial government isn’t the only entity in Saskatchewan raising alarm bells over the impending carbon tax.
In a statement Tuesday, an Evraz North America spokesperson said, “While addressing climate change is critically important, we must be very careful at this time to not take action that could further weaken the industry and have a negative impact on our employees and business.â€
dfraser@postmedia.com
Twitter.com/dcfraser
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