Carbon tax increase hurts those in cash crunch, Saskatoon prof says

Carbon tax hurts those in cash crunch: prof From CTV Saskatoon’s Matt Young: The increase of the federal carbon tax to $30 per tonne from $20 per tonne is “the last thing we need,” an expert says.

SASKATOON — The increase of the federal carbon tax to $30 per tonne from $20 per tonne is “the last thing we need,” said George Tannous, professor of finance at the Edwards School of Business.

Prime Minister Justin Trudeau was pressed on the issue days before the increase, which took effect on Wednesday, and said the carbon tax will put more money in people’s pockets.

“Our plan on pricing pollution puts more money up-front into people’s pockets than they would pay with the new price on pollution,” Trudeau said.

However, Tannous said that doesn’t help people who may be in a cash crunch right now and a temporary pause in the carbon tax would help.

“It’s not going to make or break our lives at this point. But every little bit helps. And I don’t think it’s a good time to raise taxes right now.”

Premier Scott Moe has been an outspoken critic of the carbon tax from its inception calling it unconstitutional. The issue is expected to be decided by the Supreme Court of Canada.

Saskatchewan NDP Ryan Meili has said Saskatchewan should have its own plan to avoid having Ottawa’s imposed, but said the current carbon tax should not go up right now.

“There is so much going on right now. I don’t know that it’s helpful to have that tax increase at this time and we think there are big flaws with the federal plan.”