Trudeau’s carbon tax rebate is smart - but complicated

By Christopher Ragan, the Globe and Mail, October 24, 2018

Christopher Ragan is chair of Canada’s Ecofiscal Commission and director of the Max Bell School of Public Policy at McGill University.

The federal government announced this week that its carbon tax will apply in early 2019 to those provinces without their own – Saskatchewan, Manitoba, Ontario and New Brunswick. It also announced that most of the carbon-tax revenues will be returned through the income-tax system to households.

With this two-part policy, the feds have designed a smart package that will both reduce greenhouse gas (GHG) emissions and maintain most families’ purchasing power. But the government will need to carefully explain how both parts of the policy actually make sense.

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