Recycling Carbon Tax Revenues
One key feature of Dion’s carbon tax proposal – among others – is that revenues are recycled back almost exclusively to households to maintain living standards, especially at the lower income end, while still preserving incentives to save on energy consumption. That’s reasonable as far as it goes. But what about the public sector and public consumption? What is the offset to increased heating and power costs in schools, hospitals, universities and colleges, government buildings etc etc.? Perhaps a direct offset would be preferable to more or less inevitable second round tax increases?