‘What do you think of the carbon tax Camp and why is it such a bone of contention? ‘

 ‘Like any government tax it is always opposed especially if people don’t understand it. The carbon tax is a price levied on emissions from fossil fuel sources, be it from coal, oil, natural gas or gasoline. The levy varies based on how much carbon dioxide a fuel releases when burned. Coal, for example, releases more carbon pollution than natural gas to produce the same amount of energy, so the tax is higher on coal than natural gas,’ Camp explained.

‘As I understand it, the Liberals under Trudeau, introduced the tax in 2019 and it is designed as a financial incentive for people and businesses to change their behaviour to burn less fossil fuels and transition to greener forms of energy, thus helping Canada lower its emissions.’

‘That’s about right and typically people oppose the costs of the carbon tax but forget the associated rebates, which are worth roughly $70 to $140 per month for a family of four, depending on where they live. That’s a nice chunk of change.’

‘Axing the carbon tax would also axe the rebates. How much money are we talking about here?’ I said, knowing that Camp had looked into this issue, unlike most of us who just hear the buzzwords, the bumper sticker and the complaints.’

‘Trevor Tombe, a University of Calgary economist, looked into this and shared his findings with the CBC News in order to illustrate how a hypothetical axing of the federal carbon tax would affect different households.’ At this point Camp pulled his magic phone out. ‘If we got rid of the carbon tax and the rebate,” Tombe said, ‘then this would harm a much larger fraction of lower- and middle-income households than it would higher-income households.’ 

‘Let me get this straight: The more fossil fuels you consume, the more carbon tax you pay directly. These costs are tacked on to the purchase price of gasoline, diesel, natural gas, propane, etc.’

‘Yes, and then there are the indirect carbon-tax costs in the form of increased prices on the goods and services you buy. These come as companies pass along the costs of their own carbon taxes to consumers.’ 

‘And the better off people tend to pay more on both fronts: more fuel and more goods and services.’ I said.

            The rebates, however, aren’t affected by income,’ Camp pointed out. According to the Statistics Canada model, 94 per cent of households with incomes below $50,000 receive rebates that exceed their carbon-tax costs in 2023. It’s the high-income households that make $ 250’000 and up, who stand to gain the most if the tax were axed tomorrow.’

‘It sounds to me that this carbon tax is a win for middle-income Canadians and a win for the environment by incentivising businesses and citizens to opt for more sustainable energy solutions than burning finite resources like hydro-carbons. I really don’t understand why there is such an opposition to the carbon tax.’ 

‘Camp shrugged and finished his pint. You’re preaching once more to the choir. Let’s face it, about $2.3 billion in federal carbon-tax rebates will be paid out to roughly 12 million Canadians this week, even though many of them may not even realize it. The quarterly payments go out to every tax-filing adult household in the eight provinces where the federal carbon tax applies. Not in British Columbia, Quebec and the Northwest Territories where they have their own carbon-pricing mechanisms that meet federal standards.’

‘Since April 1, 2023, B.C.’s carbon tax rate rose from $50 to $65 per tCO₂e. Revenues generated will be directed to carbon tax relief through the Climate Action Tax Credit. It’s automatic. You have to be at least 19, live with a significant other and have at least one child. In other words, you and I don’t get it.’

‘Thanks for explaining all this Camp. You should run for public office again. What happens in British Columbia?’

‘I did my time at city hall. That’s before I met Muriel. Now I need my spare time to keep the home fires burning.’

‘I wonder how much hidden carbon tax is in the beer we drink?’

‘You don’t want to know. Taxes in Canada make up about half the price of beer, two thirds the price for wine and three quarters for spirits. If you buy a 24 pack of Lager, a couple of bottles of Chianti and a bottle of rum you’ll pay about $ 130. More than $ 80 of that is tax.’

‘That’s depressing,’ I said.

‘What’s depressing,’ Vicky, our tireless server wanted to know.

‘The amount of taxes on alcohol.’

 ‘We’re already tipping the tax Vicky. Nothing personal.’

‘At least you know where the tips go. Right here into my pocket and then into the local grocery store, the pharmacy, the child care and the rent.’