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Difference of Opinion on how Carbon Levy will Impact Average Albertan’s Pocket

May 24, 2016 | 4:39 PM

ALBERTA – Alberta has put forward legislation to implement its multibillion-dollar carbon levy, with new estimates hiking the cost for families to as much as $443 next year.

Environment Minister Shannon Phillips has introduced Bill 20 for first reading in the legislature.

Phillips says the levy will provide an incentive to go green and will be reduced as Alberta becomes more environmentally friendly.

If passed, the proposed legislation would: set in law Alberta’s carbon levy and carbon levy rebate, ensure revenue from the carbon levy is invested into actions that address climate change, and establish Energy Efficiency Alberta.

The $20 per tonne carbon levy will take effect on January 1, 2017.

Bill 20 would amend the Corporate Tax Act, in order to reduce the small business tax rate, which will help small businesses adjust to the price of carbon.

Effective January 1, 2017, the rate will be lowered from three per cent to two per cent.

She notes that with up to two-thirds of lower to middle-income Albertans getting rebates, there is a chance some people will see a net monetary gain. However, the new estimate is $70 to $105 more per family than was forecast in the budget last month.

Phillips said that 66-per cent of Alberta households will receive a full or partial rebate.

Brian Jean, Leaver of the Wildrose Opposition, said that the government is lowballing the estimates and that the true cost for the average family will be closer to $1,000 next year.

“Albertans are hurting across the province and many families are waking up wondering if they will be able to hold on to their job by the end of the month,” Jean said. “An aggressive carbon tax that simply squeezes families and businesses for every spare penny will not help people pay their mortgages or get back to work. Without acting in concert with competing economies here in North America, this tax will just make it more difficult for our economy to recover.”

Jean noted that the carbon tax will also come with a big price tag for Alberta’s charitable, health and education sectors, and Alberta’s municipalities, none of whom have been exempted from the carbon tax.