Bye Bye Carbon Tax

[Jay-mo]

Quebec joins carbon tax challenge. Must have seen their juicy welfare equalizations were going to get cut off.

Trudeau wont risk going against his base.

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Big deal. Quebec will just get its own special deal.

[Hamloc]

It appears that Quebec is concerned about retaining provincial jurisdiction over carbon taxes. There is a very simple reason for this, Quebec's cap and trade program works out to roughly $18 per tonne. Under Justin Trudeau's mandated plan the price on carbon must be $30 a tonne in 2020, $40 a tonne in 2021 and $50 in 2022. With Quebec's cap and trade deal being with California there is certainly no guarantee their price on carbon will rise and my guess is Quebec doesn't want it to rise. There is no doubt while Trudeau will shove his tax levels down Alberta's and Saskatchewan he won't do anything in Quebec. I believe he signed an interesting deal in PEI in which PEI lowered their gas tax and then raised it again with a carbon tax with a net gain of 1 cent a liter and no tax on heating fuel. The carbon tax in Canada is a ridiculous mish mash that is applied differently in every province depending on whether your a Liberal friend or not.