Why a carbon tax won’t cause a recession

Published on Maclean’s

Opinion: Doug Ford insists the federal price on carbon is a Liberal tax grab that will inflict serious economic hardship. But none of that is true.

Mark Cameron is Executive Director and Michael Bernstein is Senior Vice-President of Canadians for Clean Prosperity.

Ontario Premier Doug Ford chose a luncheon at the Economic Club of Canada to make one of his most economically uninformed statements ever, suggesting that a modest, fully refunded carbon price could somehow lead to a recession.

In fact, economists are almost unanimous that a revenue neutral carbon tax is the lowest cost, most market friendly approach to dealing with climate change. British Columbia, which has had a carbon tax for over a decade, has had the strongest economic growth in Canada over the last several years. Furthermore, B.C.’s tax is $35 per tonne; higher than the $20 per tonne that will be applied in Ontario under the federal backstop. The vast majority of the money raised has been returned to B.C. residents as tax cuts or rebates. The federal plan will also return all funds raised as rebates.

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