Green Shift

8/14/2019 Green Shift

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123 Main St.,Whoville, ON N0N 0N0Phone: (555) 555-5555

House of CommonsOttawa, ON K1A 0A6Phone: (613) 955-5555

John Q. DoeMember of Parliament, Any RidingSomewhere

Liberals will cut personal and corporate taxes by billions

of dollars a year. Every family will pay less income tax.

Liberals will put a price on carbon emissions that

contribute to climate change and fuels such as coal andnatural gas. There will be no new tax on gasoline at thepump.

All money raised from polluters will fund the tax cuts forfamilies, companies and workers.

Liberals will invest in renewable energy andconservation, helping everyone to cut their pollution. Ifyou burn less, you pay less. This change in behaviourwill result in more energy efficient homes, appliances,cleaner cars, etc.

Liberals will include everyone on this journey of hope.

Our plan to fight poverty ensures that low-incomefamilies, singles and seniors are insulated from risingenergy costs.

The Liberal plan will also include additional support forural and Northern Canadians, who are subject to higheenergy costs. Liberals will provide specific assistance tooffset the higher price of carbon.

Liberals know that cutting personal and corporate taxesand getting serious about green technologies will attracinvestment and create thousands of new jobs.

The Green Shift plan will be revenue neutral. This meanthat every penny raised in pollution taxes will be returnto Canadians in tax cuts. This will be verified by theAuditor General, who will monitor the plans revenue-

neutrality.

Liberals launch bold plan to address climate change

GreenGreenGreenGreenShift:Shift:Shift:Shift:Liberal Leader StphaneDion launched his partysbold Green Shift plan in

Ottawa June 19. The planshifts taxes onto polluters,

and gives all revenues

received back to Canadiansthough cuts to income taxes

and other tax credits.

The John Q. Doe ReportJohn Q. Doe, Member of Parliament, Any Riding-Somewhere


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The Liberal Green Shift is a forward-looking plan that isgood for the environment and the economy.

It is powerful and simple: we will cut taxes on things wewant more of, such as income, investment and innovation.And we will shift those taxes to what we all want less of:pollution, greenhouse gas emissions and waste.

Economists and environmentalists are virtually allagreed: if we are serious about combating global climatechange, we must put a price on greenhouse gas emissions.Pollution cannot be free. By recognizing that carbon has areal cost, we as a society will shift our energy use to cleaner,greener alternatives.

This bold idea will also stimulate opportunities, leadingus to invest in technologies that will cut emissions andtransform our future. Whether we are talking about capturingand sequestering carbon from the oil sands, or developingnew forms of renewable energy, Canada must become aworld leader in these fields. The future is green, and if

Canada is an innovator, Canadians will profit.

The Green Shift phases in a cost for carbon dioxide,starting at $10 per tonne in the first year, and increasing to$40 per tonne in the fourth year. This will apply at the

wholesale level on fossil fuels such as coal and natural gas.There will be no increase to tax on gasoline at the pumpbecause the existing ten-cent-per-litre excise tax is equal to price on carbon of $42 per tonne.

An average household will pay $225 to $250 in directcosts in year four, mainly due to higher heating andelectricity costs. But this will be offset by lower income

taxes, a new child tax credit worth $350 per child per year,and other measures targeted at low- and middle-incomeCanadians, seniors, and other vulnerable Canadians.

This plan cuts across ideologies of left and right.Proponents of a green tax shift for the whole of Canadainclude such diverse groups and individuals as theConference Board of Canada, environmental leader DavidSuzuki, and the Canadian Council of Chief Executives, toname but a few.

Let us all work together to build a richer, fairer, greenerCanada!

Lets build aricher, fairer,

greener Canada

Green Shift offers tax savings for typical family

The Liberal Green Shift plan is not only good for theplanet; its good for your wallet too.

The Green Shift tax cuts reward hard work. Under theplan, Liberals will cut the lowest income tax rate to 13.5percent from 15 percent. We will also cut income tax ratesfor middle-income Canadians to 21 percent from 22 percentand to 25 percent from 26 percent.

This means by the fourth year of our plan, a familywith two children and a combined income of $20,000 willsave almost $2,400 on average; a family with two childrenearning $40,000 a year will save about $1,850; a familywith two children earning $60,000 will save over $1,300, aswill a family earning $80,000.

Liberals understand that energy requirements are higherin rural Canada and in the North. Our plan recognizes theserealities and will provide specific assistance to rural

Canadians and Northerners through an annual Green RuralCredit worth $150 and boosting the Northern ResidentsDeduction to a new maximum of $7,000.

In addition to the measures outlined in the Green Shift,a Liberal government will ease the tax burden on seniorsand low-income families through increases to the GIS, anew monthly Guaranteed Family Supplement andimprovements to the National Child Benefit Supplement.

The Liberal Green Shift is a fundamental change in theway government operates taking money out of thepolluters pockets and putting more money back in yours.


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I believe theLiberal GreenShift is the rightway forward.

We need to make real

progress in the fight againstthe climate change crisis, andat the same time make oureconomy more competitive.

Stphane Dion, Liberal Leader

What are they saying?Mr. Dion's proposed carbon tax is a good example ofthe kind of policy Canada needs to fight climatechange.

Marlo Raynolds Executive Director, Pembina

Institute

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This policy represents a seismic conceptual shift inthe federal tax system, sending the message that theDion Liberals are prepared to re-invest in social andenvironmental policy in a creative way. This is asharp divergence from the Conservative agenda ofmarket-based social policy, and a climate changepolicy designed to expand Canada's dependence onand pollution from the oil industry. In the next

election, finally, voters will have a clear choice tomake.

Janice Harvey Freelance Writer and Director of theConservation Council of New Brunswick

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I actually think that the way forward really is to havea carbon tax regime such as the Liberals' Green Shiftand then over the long run implement a cap-and-trade system as wellAs I say, in broad brush

strokes, well done, Mr. Dion.

Stephen Hazell Executive Director, Sierra ClubCanada

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Carbon taxes are not a bad way to go in addressingglobal warmingI think most economists wouldprobably be generally favourable to them. It's about

as efficient a way as is out there.

Doug Porter Deputy Chief Economist, BMO CapitalMarkets

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The idea is sensible. There's a growing consensus todo something about emissions. We need to put aprice on carbon.

Don Drummond - Chief Economist, TD Group

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You can sort out politicians (and business people)who are serious about significant GHG reductions byasking a simple question: Who wants to put a priceon carbon and who doesnt?

But the Liberals got the essence of a serious policyright: Tax the behaviour that pollutes, then use thatrevenue to reduce personal and corporate taxes.Bravo to the brave.

Jeffrey Simpson - Columnist, Globe and Mail,June 20, 2008


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Hon. Stphane DionLeader of the Opposition

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Green Shift by numbersThe Costs:

The Green Shift sets a price of $10 per tonne ofcarbon emitted from the burning of fossil fuels in the firstyear, rising to $40 per tonne in the fourth year.

This will have a different impact on various fuels,

usually of just a few pennies, and a much smaller increasethan the fluctuations the market price has seen recently.

Diesel fuel, for example, already has a 4-cent-per-litre excise tax, so it will see no increase in price duringthe first year of the Green Shift. By the fourth year, thetotal additional tax will be 7 cents per litre muchsmaller than recent price increases.

Propane increases by 1.5 cents per litre in the firstyear reaching a total additional tax of 6.1 cents in thefourth year. For a typical 20 lb. barbecue tank, this meansan increased cost to fill it of 24 cents in the first year,reaching a total of 95 cents by the fourth.

An average household using home heating oil buysabout 1,800 litres per year. The Green Shift will increasethe cost in the first year by about $50 per year or $4.20per month. By year four, the increased cost will be about$203 per year or $16.95 per month.

Despite misleading information spread by theConservatives, there will be no additional tax on gasolineat the pump. Gasoline already as a 10-cent-per-litre excisetax, which is equivalent to a carbon tax of $42 per tonne.

The Benefits:The Green Shift reduces income tax in the lowest

bracket by 10 % in the fourth year. The two middle taxbrackets will also drop by 5 % and 4 % respectively.

In addition to these broad-based tax cuts, a number of

other benefits are directed at those especially impacted bythe Green Shift (rural and northern residents) and thosewho most need assistance (low-income Canadians,families with children, and seniors).Additional measures include:

A new universal child tax benefit worth $350 perchild per year on top of all existing child benefits.This is a refundable credit, meaning its paid tofamilies whether or not they pay income tax.

Replacement of the badly designed $1,000Conservative employment credit with a $1,850refundable employment credit targeted to Canadianswho earn less than $50,000 per year.

Enriching the Working Income Tax Benefit for low-income workers.

Making the Disability Tax Credit refundable.

An annual Green Rural Credit worth $150 per taxfiler effective in the first year, and an increase of theNorthern Residents Deduction to $7,000 maximumfrom just over $6,000, and indexing to inflation.

Increasing the Guaranteed Income Supplementfor seniors, introducing a new GuaranteedFamily Supplement for low-income families, and

increasing the number of families eligible for theNational Child Benefit Supplement.

To calculate your benefits and

learn more, visit:

www.thegreenshift.ca

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Green Shift