The simple truth about the Carbon Tax

The carbon tax appears to be an issue that’s been fed by more misinformation than information.

There seems to even be some disagreement about whether the Carbon Tax is in fact a tax. It is. Here’s how it works: for larger industrial facilities, the charge is applied to emissions-intensive trade-exposed (EITE) industries and fossil fuels, such as gasoline and heating oil.

The idea is to put a price on carbon pollution. The confusion about whether this is a “tax” or not comes from the fact the Greenhouse Gas Pollution Pricing Act (that’s the tax’s official name) is designed to be revenue neutral.

It taxes carbon pollution and then places an equivalent back into the pockets of the consumers who will be paying higher prices for  carbon-intensive products. The logic is that consumers will make greener choices when facing the premiums they will have to pay on these products.

Everyone who files a tax return is eligible for a Climate Action Incentive payment.

And the amounts are not insignificant:

• $154 for a single adult or the first adult in a couple
• $77 for the second adult in a couple; single parents will receive this amount for their first child
• $38 for each child in the family (starting with the second child for single parents)

These rebates are also scheduled to increase up to $718 annually for a family of four in 2022.

It being tax season, make sure you file for your Climate Action Incentive payment. We believe that every single one of our clients will be eligible to collect.

What do you need to file? It’s a simple form – Schedule 14 –available online. And for a government form, it’s very straight ahead.

So file for your Climate Action Incentive. You’re entitled.

Please pass this along to anyone in your circle who’s trying to understand the Carbon Tax.

Thanks,

Eric

416-510-8601
1370 Don Mills Road, Suite 211, Toronto, ON  M3B 3N7
info@barecwealth.ca

This information has been prepared by Barbara & Eric Chong who are Financial advisor for Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Financial Advisor can open accounts only in the provinces in which they are registered. For more information about Investia, please consult the official website atwww.investia.ca