Living with Carbon Tax for climate change!

Carbon Tax is just like a Sword of Damocles hanging over our heads, giving us more impending harm to family finances at the height of Canada’s inflation which rose to a new multi-decade high of 5.7%.

Last April 1, 2022, a carbon tax on gasoline of 11 cents was added and dramatically, the price per liter went up to the roof.

And take a look at your Manitoba Hydro Bill lately, the Federal carbon tax on Natural Gas is included. In my case, in January 2022, I paid an additional $51.49 plus GST on the carbon tax of 5%, amounting to $2.57, so the total amount added to my bill is $54.06, a big chunk of money for our non-food budget! This amount could have been spent on our daily essentials.

And hold on, the gasoline and natural gas carbon taxes increase based on your consumption, that is, when you travel a lot, .11cents are added to your gas bill; and when you heat your home during wintertime, big chunks of money are added to your monthly bill!

But what is carbon tax being passed to the consumers who at this time are struggling with high inflation, the highest in 30 years?

According to the government’s public documents, a carbon tax is a tax imposed on the amount of carbon emitted into the atmosphere as a result of human activity. The carbon emitted is usually in the form of carbon dioxide (CO2) from burning fossil fuels.

The goal of a carbon tax is to create incentives for individuals and businesses to reduce their amount of carbon emissions in order to help curb climate change. A carbon tax may also be referred to as carbon pricing, price on carbon, greenhouse gas tax (GHG tax), or fuel charge, although each of these has slightly varying definitions.

And it reveals why higher taxes on carbon-based fuels, so households, and industries can reduce the level of pollution and look to alternatives like solar power and hydrogen engines which have lower impacts on the environment, halting the effects of dreadful climate change.

With so much carbon tax money collected, the question is where does Canada’s carbon tax money go? The answer: “In the remaining provinces where the federal price on carbon pollution is in effect, the Government of Canada uses approximately 90% of fuel charge proceeds to directly support families through Climate Action Incentive payments, delivered through the annual tax return.

Deputy Prime Minister and Minister of Finance Honourable Chrystia Freeland announced lately the increase of Climate Action Incentive payments for 2022-23, a family of four (4) will receive $745 in Ontario, $832 in Manitoba; $1,101 in Saskatchewan, and $1,079 in Alberta. Families in rural and small communities are eligible to receive an extra 10 per cent.

Fair enough for a family of four, how about those living alone, or just a couple, what would be the Climate Action Incentive payments?

At least helping to curb the overly-discussed Climate Change!