Bold Liberal Green Shift Will Benefit All
Canadians
OTTAWA - The Liberal Party of Canada's plan for the environment and the
economy is a Green Shift that will cut income taxes, put a price on
pollution, fight poverty and position Canada to be a leader in the 21st
century global economy, Liberal Leader Stéphane Dion announced
today.
"Canadians know that we need to be bold, not blind, to the challenges
we are facing today, especially climate change," said Mr. Dion at the
unveiling.
Calling his plan "as powerful as it is simple," Mr. Dion said,
"the Liberal
Green Shift will cut taxes on those things we all want more of - such as
income, investment and innovation - and shift those taxes to what we all
want less of: pollution, greenhouse gas emissions and waste."
"Our plan makes important changes to the tax system that are
broad-based and progressive. We need to make polluters pay and put every
single penny back into the hands of Canadians," he said.
Upon forming a government, Liberals will put a price on fossil fuels, like
coal and natural gas, starting at $10 per tonne of carbon dioxide and
rising to $40 per tonne over four years.
No new taxes will be levied on gasoline at the pump, since there is
already an excise tax in place which equates to $42 per tonne of carbon
dioxide.
Using the revenue generated through carbon pricing, a new Liberal
government will implement measures like:
. Significant cuts to the first three marginal rates of income tax;
. A new, universal child tax benefit worth $350 per child, per year,
on top of all existing child benefits; . An $850 increase to the
employment tax credit, which will also be made refundable and targeted at
lower-income Canadians;
. A more generous Working Income Tax Benefit to help Canadians over
the welfare wall;
. Additional tax credits and incentives for business to encourage
innovation and green investment;
. An increase to the Northern Residents Deduction, and indexation
going forward; and . An immediate Green Rural Credit worth $150 for every
rural tax-filer.
In addition to the Green Shift, Liberals will offer targeted benefits
financed from the existing fiscal framework to help lift low-income
Canadians out of poverty, including a $600 increase to the Guaranteed
Income Supplement for seniors, and benefits for low-income Canadian
families.
The Green Shift will be part of a broader environmental plan to help
Canadians reduce their environmental footprint, become more energy
efficient and save on energy costs. It will include complementary
regulations and incentives such as home retrofits, energy efficient
appliances and vehicles, and low carbon farm and forestry practices.
As a result of these measures, by the fourth year of the plan a
two-earning
family with two children and a combined income of only $20,000 will
receive a benefit of almost $2,400. A family with two children earning
$40,000 a year will save nearly $1,900, and a family with two children
earning $60,000 will save over $1,300, as will a family earning $80,000.
"Our plan is designed to benefit all Canadians, not select groups, so
that
everyone can participate in the new economy while contributing to the
fight against climate change," said Mr. Dion.
Businesses will also have their tax rates cut so they can invest more
money in their own practices, reduce their own polluting and increase
their energy efficiency. In year four of the Liberal plan, the general
corporate rate will be reduced by one point, as will the small business
income tax rate.
It will also set aside $600 million to allow accelerated capital cost
allowance rates for investment in industrial technologies that reduce
green house gas pollution and significantly improve energy efficiency. And
to further help private sector investments in research and development,
the Science, Research and Experimental Development (SR&ED) tax credit
will be more broadly available.
To assure Canadians that this plan is not a tax grab by government - that
it will be revenue neutral - Mr. Dion said the Green Shift plan will be
enacted into law and the Auditor General will be mandated to review it
annually.
"The Liberal Green Shift plan will accomplish multiple goals: it will
make
real progress in the fight against the climate change crisis, while
encouraging energy efficiency in the face of skyrocketing energy costs;
and it will make our economy more competitive, while helping to decrease
poverty," concluded Mr. Dion.
