Truckies want end to carbon tax plan in order to reduce emissions
Petersen: Carbon tax won’t save anyone money and ‘we’re just wasting money’
The Liberals say the $7.50-per-tonne tax will only cost the economy $5-billion and create 7,000 jobs.
The tax would be phased in over three years. Starting in 2018, gasoline taxes will rise from $9.75 per litre to $13, including a $50-per-tonne increase each year until 2022.
The Liberals promise the tax will be revenue neutral as well.
Opposition NDP Leader Thomas Mulcair says the Liberals are throwing away good tax revenue, adding they will end up with $4 billion less in spending in the next four years due to the proposed carbon tax.
He says that will hurt the economy, but if anything the carbon tax is a job creator because it’s making us more competitive, especially in international competition.
WATCH: Mulcair explains how carbon taxes are supposed to help create jobs
It will create $5-billion in revenue, the Liberals say and they’ll find another $300-million through lower fuel taxes.
They say these additional revenue won’t come out of corporate taxes.
WATCH: Tom Mulcair discusses the Liberals’ carbon tax plan
They also warn that the carbon tax would add $400 million to the federal debt during the next 10 years.
The Liberals say there are about 1.5 million jobs that depend on our economy.
The government has promised to phase out the carbon tax in 2018 and there will be a transitional carbon tax starting in 2024.
WATCH: Liberals say their carbon tax plan will be revenue neutral in four years
The new plan will increase overall taxes for businesses by $2.9 billion by cutting other tax credits that bring in $250 million annually.
The Liberals say the carbon tax’s price is more competitive and they’re offering it as a way to spur growth and job creation.
The new Liberal plan would include a 10-year freeze on business taxes and a one-per-cent carbon tax for all electricity bills on residential and small business customers and on large corporate and professional users.