Study shows carbon-tax rebate helps lower-income earners the most

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Study shows carbon-tax rebate helps lower-income earners the most
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Study shows carbon-tax rebate helps lower-income earners the most GlobePolitics

Christopher Katsarov/The Canadian Press

The program, a federal backstop imposed on provinces that don’t have their own carbon price on consumer goods, will be introduced in Alberta on Jan. 1. It’s already in place in Ontario, Saskatchewan, Manitoba and New Brunswick. But it will be removed from the East Coast province as of April 1, when the proposed carbon tax from Progressive Conservative Premier Blaine Higgs comes into effect.

And a recent academic study from economists Jennifer Winter, Brett Dolter and G. Kent Fellows appears to add further weight to the Liberal position. The study, which has not yet been peer-reviewed, finds that the government’s rebates, which are paid to households through income-tax returns, benefit lower-income earners more, compared with most of the other options of returning the money to taxpayers.

“The takeaway is that the rebates do help to restore the spending power of households," Prof. Dolter, an assistant professor at the University of Regina, said in an interview.Asked about the study’s findings, the Alberta government called the carbon tax “punitive" and an “unconstitutional intrusion into provincial jurisdiction.”

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