The carbon tax rebate (climate action initiative) will probably give you back more than the tax cost you.
I’ve kept careful records of my carbon costs in 2020. Heating my home and water with natural gas released 3.75 tonnes of CO2. Driving my Toyota Prius Prime plug-in hybrid released 0.31 tonnes of CO2. I have solar panels on my roof to provide most of my electricity, but I still need to get some from the grid, and Hydro One released 0.07 tonnes of CO2 to provide it.
My total carbon footprint for 2020 was 4.13 tonnes, and since we were taxed at $30 per tonne in 2020, I paid $123.90 in carbon tax. But the rebate I’ll claim on the 2020 tax return as a single taxpayer is $300 + $30 (I live in Hillsburgh) = $330.00.
It’s been suggested that when the tax rises to $50 per tonne in 2022, food prices will increase by 3% because of the tax. Since in 2020, the tax was only $30, the tax effect on food cost was 1.8% in 2020. I spent about $3,700 on food in 2020, so the tax effect was $66.60. Adding that to the other costs gives $190.50, so I get back $139.50 more than I paid out in carbon tax in 2020.
Canada’s Ecofiscal Commission published a report titled, “Ten Myths about Carbon Pricing in Canada”. In myth #3 the report states, “…carbon rebates will exceed carbon costs for 70% of households.”
When you complete your 2020 tax return, be sure to claim your $300 rebate, and if you are in a rural area, claim $330 (average household rebate for Ontario is $436), so that you benefit financially from the carbon tax as well as environmentally!