Carbon emitters would pay more, the rest of us would pay less

Stéphane Dion's Green Shift taxation plan, announced June 19, is based on a simple idea.

Those who contribute to climate change by burning fossil fuels would pay more tax, while everyone else would pay less tax.

That's why it's called a "shift." Ottawa would rake in less tax money from you and rake in more from polluters. The total amount shifted would equal about $15 billion.

The plan's goal is to tax things the government wants people to do less of – such as burning fossil fuels – and reward things they want people to do more of – such as working, saving and investing.

It would also give northern residents something that numerous northern groups, including the Nunavut legislative assembly, have requested for years: a beefed up northern residency deduction that's tied to the cost of living.

An added benefit for northerners would be a $150 Green tax credit for all northern and rural residents.

Here's a brief summary of how the Liberal plan would work:

Where the money would come from

• No additional tax on gasoline;
• Tax on diesel would increase 7 cents a litre after four years;
• Tax on home heating oil would increase 11.3 cents a litre after four years;
• Tax on heavy fuel would increase 12.4 cents a litre after four years;
• Tax on jet fuel would increase 6.2 cents a litre after four years;
• Tax on propane would increase 6.3 cents a litre after four years;
• Taxes on coal, natural gas, kerosene and other fossil fuels would all increase by varying percentages after four years.

Total revenue to be taken in through new fuel taxes: about $15 billion.

Where the money would go

• An increase in the northern residency deduction to $7,000 a year from $6,000, after which it would rise with the cost of living;
• A $150 tax credit, payable to every northern and rural Canadian who files and income tax return;
• A new universal child tax benefit worth $350 per child, available to everyone, to be applied on top of existing child tax benefits;
• A new guaranteed family supplement worth $1,225 a year for low income families with children under 18
• Lowest income tax bracket cut from 13.5 to 15 per cent;
• Middle tax brackets cut from 21 to 22 per cent and from 25 to 26 per cent;
• A $1,850 tax credit for every employed person who earns less than $50,000 a year;
• Cuts to corporate and small business taxes.

Total revenue to be handed back to taxpayers: about $15 billion.

For more information go to: www.thegreenshift.ca.