Cut income, corporate taxes, close gap with carbon tax: Chong
Conservative candidate says escalating carbon tax would rise to $130 a tonne by 2030.
OTTAWA — Federal Conservative leadership candidate Michael Chong is proposing a dramatic overhaul of the tax system based on new revenues from taxing carbon.
Chong says his plan would cut overall federal income taxes by 10% and corporate taxes by 5% – while imposing an escalating tax on carbon emissions that would rise to $130 a tonne by 2030.
Chong, one of nine confirmed entrants in the Conservative race, says Canada already has a working model of a truly revenue-neutral carbon tax in BC.
But he’s breaking with almost a decade of Conservative party orthodoxy on carbon pricing, which Chong’s colleagues have consistently critiqued as a job-killing tax on everything.
Conservatives also insist carbon taxes will put Canada at a competitive disadvantage with the US, the country’s dominant trading partner.
But Chong, a Toronto-area MP since 2004, says his plan is based on conservative principles using market mechanisms that will get Canada to its 2030 international emissions-cutting target while boosting economic growth.