Trudeau took five years to send billions in carbon rebates to small businesses: report
The Trudeau government said roughly 600,000 businesses would receive $2.5 billion before the end of the year for reducing emissions, a fight for reimbursement that has exceeded five years.
The Trudeau government made small businesses wait five years for carbon rebates and finally took action to return $2.5 billion in revenues to entrepreneurs.
The feds confirmed Tuesday that roughly 600,000 businesses would receive the entire $2.5 billion allotted to the Canada Carbon Rebate for Small Businesses before the end of the year. The Canadian Federation of Independent Business (CFIB) applauded the overdue announcement.
Eligible businesses are paid a tax credit based on their province and company size, meaning a company with 499 employees in Saskatchewan could receive upwards of $576,844, according to a government news release.
Additional announcements include an updated code of conduct for credit and debit cards to reduce transaction fees for small businesses.
Rebel News' @TheVoiceAlexa asks Premier Danielle Smith about PM Trudeau's refusal to meet with premiers over the carbon tax.
— Rebel News (@RebelNewsOnline) April 12, 2024
Smith calls the carbon tax "punitive," and says governments should focus on technology and working with industries instead.https://t.co/dh39RL8IFZ pic.twitter.com/Gpie7YJGO1
“CFIB is relieved to learn the federal government will return the $2.5 billion small business share of carbon tax revenue that has been stuck in Ottawa for the past five years,” said Dan Kelly, CFIB president.
Kelly said that means a company with 10 employees in Alberta will receive almost $6,000. Other examples include $24,000 for a 50-person business in Manitoba, and $40,000 for a 100-person Ontario company.
“These are not trivial amounts of money.”
When the Trudeau government introduced the federal tax in 2018, it pledged a revenue-neutral tax. Nearly 89% of the proceeds ($11.4 billion) were returned to households.
Rebel News reported that 7% ($2.5 billion) of revenues were to be allocated to small and medium-sized businesses who reduced their emissions. Only 0.17% of revenues were returned between 2019 and 2023.
“They pay about 40% of the costs of the carbon tax, but the federal government has promised to return only 10% to small businesses,” notes Kelly.
The Canadian Federation of Independent Business (CFIB) estimates that small businesses pay nearly half of the federal carbon tax revenue but receive only 0.17% of all carbon rebates between 2019 and 2023.
— Rebel News Canada (@RebelNews_CA) February 10, 2024
READ MORE: https://t.co/NVEfCYElQ7 pic.twitter.com/wpXBqsbfxy
The finance department was “developing the specifics” for payouts since 2019, reported Blacklock’s Reporter.
An overwhelming 85% of small businesses opposed the federal carbon tax, according to a previous CFIB survey.
Under the current regime, “Increases in the carbon tax, coupled with minimal compensation, made the cost of doing business substantially higher, negatively impacting thousands of businesses,” said the Canadian Federation of Independent Business in its report Fueling Unfairness: Carbon Pricing And Small Business.
According to the Federation, three in five businesses incurred 10% higher energy costs last year, despite using the same amount of power as in previous years.
Should the carbon tax continue to rise through 2030, over half (56%) of small businesses would increase their prices to offset costs, said Fueling Unfairness.
Over four in ten (45%) said they would be forced to freeze or cut salaries. Another 40% would reduce investments in their business.
Alberta government exposes small business carbon tax scam
— Rebel News (@RebelNewsOnline) April 14, 2024
The federal government owes small businesses $2.5 billion in carbon rebates. Of that total, $718 million belongs to 175,000 eligible businesses in Alberta.https://t.co/03MRgEeKz0
Alberta Environment Minister Rebecca Schulz accused the Trudeau government of holding entrepreneurs hostage by not reimbursing them with their allotted rebates.
“Remember, this debacle exposed one of the key lies spread by the federal Liberals: that the carbon tax is ‘revenue neutral.’ They would have never returned these funds to small businesses had they not been called out,” said Schulz. “The only way to stop this from happening in the future is to abolish the carbon tax.”
A spokesperson for the minister told True North the Alberta government would use “every legal tool” to protect businesses from this “blatant robbery.”
Schulz also questioned the debunked “revenue neutral” claim, calling the small business carbon tax a “scam”.
The CFIB said that it would continue to pressure the federal government and all opposition parties to axe the tax as soon as possible, as echoed by Schulz. “That’s money that could be used to make payroll and keep the lights on,” she said.
